Certified Annual Shareholder Report for Management Investment Companies (n-csr)

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: 811-05476

 

LORD ABBETT GLOBAL FUND, INC.

(Exact name of Registrant as specified in charter)

 

90 Hudson Street, Jersey City, NJ 07302

 

(Address of principal executive offices) (Zip code)

 

Thomas R. Phillips, 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: [phone]

 

Date of fiscal year end: 12/31

 

Date of reporting period: 12/31/2013

Item 1:

Report(s) to Shareholders.

2013

LO R D  A B B E T T

A N N U A L

R E P O RT

 

Lord Abbett

 

Emerging Markets Corporate Debt Fund

 

Emerging Markets Currency Fund

 

Emerging Markets Local Bond Fund

 

Multi-Asset Global Opportunity Fund*

 

For the fiscal year ended December 31, 2013  

* Formerly, Global Allocation Fund

 

Table of Contents

 

1		A Letter to Shareholders
6		Investment Comparisons
9		Information About Your Fund’s Expenses and Holdings Presented by Sector
		Schedules of Investments:
14		Emerging Markets Corporate Debt Fund
18		Emerging Markets Currency Fund
38		Emerging Markets Local Bond Fund
44		Multi-Asset Global Opportunity Fund
45		Statements of Assets and Liabilities
49		Statements of Operations
51		Statements of Changes in Net Assets
55		Financial Highlights
82		Notes to Financial Statements
108		Report of Independent Registered Public Accounting Firm
110		Supplemental Information to Shareholders

 

 

Lord Abbett Emerging Markets Corporate Debt Fund,
Lord Abbett Emerging Markets Currency Fund,
Lord Abbett Emerging Markets Local Bond Fund and
Lord Abbett Multi-Asset Global Opportunity Fund
Annual Report

For the fiscal year ended December 31, 2013

 

 

 

Daria L. Foster, Director, President and Chief Executive Officer of the Lord Abbett Funds, and E. Thayer Bigelow, Independent Chairman of the Lord Abbett Funds.

 

Dear Shareholders: We are pleased to provide you with this overview of the performance of the Funds for the fiscal year ended December 31, 2013. On this page and the following pages, we discuss the major factors that influenced fiscal year performance. For detailed and more timely information about the Funds, please visit our Website at www.lordabbett.com, where you also can access the quarterly commentaries that provide updates on each Fund’s performance and other portfolio related updates.

 

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,

 

Daria L. Foster

Director, President and Chief Executive Officer

 

Emerging Markets Currency Fund

 

For the fiscal year ended December 31, 2013, the Fund returned -3.21%, reflecting performance at the net asset value (NAV) of Class A shares, with all distributions reinvested, compared to its benchmark, the Barclays Global Emerging Markets Strategy (GEMS) Index, ¹ which returned -3.48% during the same period.

 

The Fund’s short position in the Taiwan new dollar was a positive contributor to relative performance during the period.

 

1

 

 

The Central Bank of the Republic of China (Taiwan) was determined to prevent the dollar from appreciating, in order to keep exporters competitive globally. In addition, the Fund’s underweight in the South African rand at the beginning of the year contributed to relative performance. The country was inundated with policy paralysis, weak fundamentals, and a large current account deficit. Furthermore, the Fund’s off-index holdings of short-term Nigerian Treasury bills benefited relative performance. We successfully anticipated that the Central Bank of Nigeria would maintain currency stability, making the short-term interest rates of approximately 12% that much more attractive despite the 3% devaluation of the Nigerian Naira during 2013.

 

Detracting from relative performance was an overweight position in the Brazilian real. The central bank of Brazil hiked interest rates in the midst of rising inflation and a slowing economy. Even though the central bank intervened to support the currency, and reversed capital controls it put in place over the past few years, the stability we anticipated did not materialize until a more comprehensive intervention program was put in place in August. In addition, the Fund’s exposure to the Turkish lira detracted from relative performance as the currency experienced significant volatility throughout the period. Moreover, the Fund’s exposure to the Indian rupee and the Indonesian rupiah detracted from relative performance. The Fund maintained an overweight in these countries during the U.S. Federal Reserve-induced volatility surrounding the potential tapering of its asset-purchasing program. We incorrectly anticipated that policymakers in these countries would take greater measures to stem the decline of their currencies and that these measures would be effective in a more timely manner.

 

Emerging Markets Local Bond Fund

 

For the period June 28, 2013 to December 31, 2013, the Fund returned -1.82%, reflecting performance at the net asset value (NAV) of Class A shares, with all distributions reinvested, compared to its benchmark, the JP Morgan GBI-EM Global Diversified Index ² which returned -1.96% during the same period.

 

The Fund’s shorter duration in Indonesian bonds was a likely contributor to relative performance, as the bonds were highly vulnerable to the volatility surrounding the Fed’s plan to taper is asset-purchasing program due to high foreign ownership, a lack of credible monetary or fiscal policies and deteriorating macro fundamentals. In addition, the Fund’s longer duration in Colombian and Romanian bonds was also a likely contributor to relative performance. These countries have a relatively low percentage of foreign ownership, accommodative monetary policies improving growth, and low inflation. Furthermore, the Fund most likely benefited from having a longer duration in Russian bonds and a shorter duration in

 

2

 

 

South African bonds, while hedging the foreign exchange risk in each country’s currency.

 

A likely detractor from relative performance was the Fund’s shorter duration in Thai bonds. We incorrectly anticipated that Thai bonds would be more adversely affected by volatility surrounding the U.S. Federal Reserve’s plan to taper its asset-purchasing program because foreign ownership of Thai bonds has increased significantly in recent years. In addition, the Fund’s longer duration in Mexican bonds was a likely detractor from relative performance in the second half of the period as negative external volatility overwhelmed positive domestic reforms. Furthermore, the Fund’s underweight to Polish bonds was a likely detractor from relative performance, as the country has tended to be something of a safe haven for investors during times of increased volatility. We were underweight Polish bonds due to their relatively low yields and recent pension reform, which we anticipated would negatively affect the market.

 

Multi-Asset Global Opportunity Fund (formerly, Lord Abbett Global Allocation Fund)

 

For the fiscal year ended December 31, 2013, the Fund returned 14.66%, reflecting performance at the net asset value (NAV) of Class A shares, with all distributions reinvested, compared to its benchmark, the 40% MSCI EAFE Index with Gross Dividends ³ /25% Russell 1000 ^® Index ⁴ /20% Barclays U.S. Aggregate Bond Index ⁵ /15% BofA Merrill Lynch U.S. High Yield Master II Constrained Index, ⁶ which returned 17.77% over the same period.

 

During the 12-month period, domestic equity markets (as represented by the S&P 500 ^® Index ⁷ ) outperformed fixed-income markets (as represented by the Barclays U.S. Aggregate Bond Index). Domestic equity markets also outperformed foreign equity markets (as represented by the MSCI EAFE Index with Gross Dividends) and emerging market currencies (as represented by Barclays Global Emerging Markets Strategy Index ¹ ).

 

Relative to the Fund’s benchmark, the Fund’s overall asset-class positioning detracted from performance during the period. The Fund’s allocation to emerging market currencies had the largest negative impact on relative performance, as this asset class underperformed the Fund’s benchmark. Benefiting relative performance was the Fund’s overweight in domestic equities, as domestic equities outperformed the Fund’s benchmark.

 

Although asset-class positioning caused the Fund to underperform the Fund’s benchmark for the period, certain strategies outperformed their respective underlying indexes, including the high-yield bond strategy. Concurrently, a domestic mid cap value strategy underperformed its benchmark, thereby augmenting the Fund’s relative underperformance.

 

3

 

 

Stock selection in the information technology and consumer staples sectors contributed to the underperformance of the domestic mid cap value strategy relative to its underlying index. Although the high-yield bond market underperformed the overall Fund benchmark, the high-yield strategy was well positioned within the asset-class and outperformed relative to its underlying high-yield benchmark. Within the high-yield bond market, lower-quality bonds outperformed higher-quality during the period. As a result, the high-yield strategy’s overweight to ‘B’ rated credits contributed to portfolio performance.

 

Each Fund’s portfolio is actively managed and, therefore, its holdings and the weightings of a particular issuer or particular sector as a percentage of portfolio assets are subject to change. Sectors may include many industries.

 

¹ The Barclays Global Emerging Markets Strategy (GEMS) Index is based on investing in one-month synthetic money market deposits across 15 diversified Emerging Market currencies.

 

² The JP Morgan Government Bond Index-Emerging Markets (GBI-EM) Global Diversified Index is a comprehensive global emerging markets index that consists of regularly traded, liquid fixed-rate and domestic currency government bonds.

 

³ The MSCI EAFE Index with Gross Dividends (Europe, Australasia, Far East) is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the United States and Canada. The MSCI EAFE Index consists of the following 21 developed market country indexes: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. The MSCI EAFE Index with Gross Dividends approximates the maximum possible dividend reinvestment. The amount reinvested is the entire dividend distributed to individuals resident in the country of the company, but does not include tax credits.

 

⁴ The Russell 1000 ^® Index measures the performance of the 1,000 largest companies in the Russell 3000 Index, which represents approximately 92% of the total market capitalization of the Russell 3000 Index.

 

⁵ The Barclays U.S. Aggregate Bond Index is an unmanaged index composed of securities from the Barclays Government/Corporate Bond Index, Mortgage-Backed Securities Index and the Asset-Backed Securities Index. Total return comprises price appreciation/depreciation and income as a percentage of the original investment. Indexes are rebalanced monthly by market capitalization.

 

⁶ The BofA Merrill Lynch U.S. High Yield Master II Constrained Index is a market value-weighted index of all domestic and Yankee high-yield bonds, including deferred interest bonds and payment-in-kind securities. Issues included in the index have maturities of one year or more and have a credit rating lower than BB-/Baa3, but are not in default. The BofA Merrill Lynch U.S. High Yield Master II Constrained Index limits any individual issuer to a maximum of 2% benchmark exposure.

 

⁷ The S&P 500 ^® Index is widely regarded as the standard for measuring large cap U.S. stock market performance and includes a representative sample of leading companies in leading industries.

 

Unless otherwise specified, indexes reflect total return, with all dividends reinvested. Indexes are unmanaged, do not reflect the deduction of fees or expenses, and are not available for direct investment.

 

Important Performance and Other Information

 

Performance data quoted in the following pages reflect past performance and are no guarantee of future results. Current performance may be higher or lower than the performance quoted. The investment return and principal value of an investment in a Fund will fluctuate so that shares, on any given day or when redeemed, may be worth more or less than their original cost. You can obtain performance data current to the most recent month end by calling Lord Abbett at 888-522-2388 or referring to www.lordabbett.com.

 

4

 

 

Except where noted, comparative Fund performance does not account for the deduction of sales charges and would be different if sales charges were included. Each Fund offers classes of shares with distinct pricing options. For a full description of the differences in pricing alternatives, please see each Fund’s prospectus.

 

During certain periods shown, expense waivers and reimbursements were in place. Without such expense waivers and reimbursements, each of the Fund’s returns would have been lower.

 

The annual commentary above discusses the views of the Funds’ management and various portfolio holdings of the Funds as of December 31, 2013. These views and portfolio holdings may have changed after this date. Information provided in the commentary is not a recommendation to buy or sell securities. Because the Funds’ portfolios are actively managed and may change significantly, the Funds may no longer own the securities described above or may have otherwise changed their positions in the securities. For more recent information about the Funds’ portfolio holdings, please visit www.lordabbett.com.

 

A Note about Risk: See Notes to Financial Statements for a discussion of investment risks. For a more detailed discussion of the risks associated with the Fund, please see each Fund’s prospectus.

 

Mutual funds are not insured by the FDIC, are not deposits or other obligations of, or guaranteed by, banks, and are subject to investment risks including possible loss of principal amount invested.

 

5

Emerging Markets Currency Fund

Investment Comparison

 

Below is a comparison of a $10,000 investment in Class A shares with the same investment in the Barclays Global Emerging Markets Strategy (GEMS) Index, assuming reinvestment of all dividends and distributions. The performance of the other classes will be greater than or less than the performance shown in the graph below due to different sales loads and expenses applicable to such classes. The graph and performance table below do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. During certain periods, expenses of the Fund have been waived or reimbursed by Lord Abbett; without such waiver or reimbursement of expenses, the Fund’s returns would have been lower. Past performance is no guarantee of future results.

 

 

 

Average Annual Total Returns at Maximum Applicable
Sales Charge for the Periods Ended December 31, 2013

		1 Year		5 Years		10 Years		Life of Class
Class A 3		-5.35%		4.68%		2.56%		—
Class B 4		-8.67%		4.05%		2.24%		—
Class C 5		-4.73%		4.50%		2.14%		—
Class F 6		-2.97%		5.35%		—		2.76%
Class I 7		-2.88%		5.42%		—		3.08%
Class P 8		-3.26%		5.02%		2.63%		—
Class R2 9		-3.59%		4.79%		—		2.33%
Class R3 9		-3.35%		4.89%		—		2.39%

 

¹ Reflects the deduction of the maximum initial sales charge of 2.25%.

² Performance for the unmanaged index does not reflect any fees or expenses. The performance of the index is not necessarily representative of the Fund’s performance.

³ Total return, which is the percentage change in net asset value, after deduction of the maximum initial sales charge of 2.25% applicable to Class A shares, with all dividends and distributions reinvested for the periods shown ending December 31, 2013, is calculated using the SEC-required uniform method to compute such return.

⁴ Performance reflects the deduction of a CDSC of 5% for 1 year, 2% for 5 years and 0% for 10 years. Class B shares automatically convert to Class A shares after approximately 8 years. (There is no initial sales charge for automatic conversions.) All returns for periods greater than 8 years reflect this conversion.

⁵ The 1% CDSC for Class C shares normally applies before the first anniversary of the purchase date. Performance for other periods is at net asset value.

⁶ Class F shares commenced operations and performance for the Class began on September 28, 2007. Performance is at net asset value.

⁷ Class I shares commenced operations and performance for the Class began on October 19, 2004. Performance is at net asset value.

⁸ Performance is at net asset value.

⁹ Class R2 and R3 shares commenced operations and performance for the Classes began on September 28, 2007. Performance is at net asset value.

 

6

Emerging Markets Local Bond Fund

Investment Comparison

 

Below is a comparison of a $10,000 investment in Class A shares with the same investment in the JPMorgan GBI-EM Global Diversified Index, assuming reinvestment of all dividends and distributions. The performance of the other classes will be greater than or less than the performance shown in the graph below due to different sales loads and expenses applicable to such classes. The graph and performance table below do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. During certain periods, expenses of the Fund have been waived or reimbursed by Lord Abbett; without such waiver or reimbursement of expenses, the Fund’s returns would have been lower. Past performance is no guarantee of future results.

 

 

 

Total Returns at Maximum Applicable

Sales Charge for the Period Ended December 31, 2013

		Life of Class
Class A 3			-4.04	%
Class C 4			-3.23	%
Class F 5			-1.84	%
Class I 5			-1.80	%
Class R2 5			-2.09	%
Class R3 5			-2.04	%

 

¹ Reflects the deduction of the maximum initial sales charge of 2.25%.

² Performance for the unmanaged index does not reflect any fees or expenses. The performance of the index is not necessarily representative of the Fund’s performance.

³ Class A shares commenced operations on June 21, 2013 and performance for the Class began on June 28, 2013. Total return, which is the percentage change in net asset value, after deduction of the maximum initial sales charge of 2.25% applicable to Class A shares, with all dividends and distributions reinvested for the period shown ended December 31, 2013, is calculated using the SEC-required uniform method to compare such return.

⁴ Class C shares commenced operations on June 21, 2013 and performance for the Class began on June 28, 2013. The 1% CDSC for Class C normally applies before the first anniversary of the purchase date.

⁵ Class F, I, R2 and R3 shares commenced operations on June 21, 2013 and performance for the Class began on June 28, 2013. Performance is at net asset value.

 

7

Multi-Asset Global Opportunity Fund

Investment Comparison

 

Below is a comparison of a $10,000 investment in Class A shares with the same investment in the 40% MSCI EAFE Index with Gross Dividends/25% Russell 1000 ^® Total Return Index/20% Barclays U.S. Aggregate Bond Index/15% BofA Merrill Lynch High Yield Master II Constrained Index and Lipper Global Flexible Portfolio Average, assuming reinvestment of all dividends and distributions. The performance of the other classes will be greater than or less than the performance shown in the graph below due to different sales loads and expenses applicable to such classes. The graph and performance table below do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. During certain periods, expenses of the Fund have been waived or reimbursed by Lord Abbett and reimbursed by the Underlying Funds; without such waiver or reimbursement of expenses, the Fund’s returns would have been lower. Past performance is no guarantee of future results.

 

 

 

Average Annual Total Returns at Maximum Applicable
Sales Charge for the Periods Ended December 31, 2013

		1 Year		5 Years		10 Years		Life of Class
Class A 3		12.11%		13.01%		6.34%		—
Class B 4		8.70%		12.48%		6.02%		—
Class C 5		12.76%		12.73%		5.87%		—
Class F 6		14.73%		13.72%		—		2.63%
Class I 7		14.85%		13.84%		—		7.46%
Class R2 8		14.13%		13.52%		—		5.33%
Class R3 8		14.33%		13.41%		—		5.23%

 

¹ Reflects the deduction of the maximum initial sales charge of 2.25%.

² Performance for each unmanaged index does not reflect any fees or expenses. The performance of each index is not necessarily representative of the Fund’s performance.

³ Total return, which is the percentage change in net asset value, after deduction of the maximum initial sales charge of 2.25% applicable to Class A shares, with all distributions reinvested for the periods shown ending December 31, 2013, is calculated using the SEC-required uniform method to compute such return.

⁴ Performance reflects the deduction of a CDSC of 5% for 1 year, 2% for 5 years and 0% for 10 years. Class B shares automatically convert to Class A shares after approximately 8 years. (There is no initial sales charge for automatic conversions.) All returns for periods greater than 8 years reflect this conversion.

⁵ The 1% CDSC for Class C shares normally applies before the first anniversary of the purchase date. Performance for other periods is at net asset value.

⁶ Class F shares commenced operations and performance for the Class began on September 28, 2007. Performance is at net asset value.

⁷ Class I shares commenced operations and performance for the Class began on October 19, 2004. Performance is at net asset value.

⁸ Class R2 and R3 shares commenced operations on June 23, 2008 and performance for the Classes began on June 30, 2008. Performance is at net asset value.

 

8

 

 

Expense Example

 

As a shareholder of a 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 each 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 (July 1, 2013 through December 31, 2013).

 

Actual Expenses

 

For each class of each Fund, the first line of the table on the following pages 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 entitled “Expenses Paid During Period 7/1/13 –12/31/13” to estimate the expenses you paid on your account during this period.

 

Hypothetical Example for Comparison Purposes

 

For each class of each Fund, the second line of the table on the following pages 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 each 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.

 

9

Emerging Markets Corporate Debt Fund

 

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 Account Value			Ending Account Value					Expenses   Paid During Period †
										12/6/13 -
		12/6/13			12/31/13					12/31/13
Class A
Actual		$1,000.00			$	999.60				$0.75
Hypothetical (5% Return Before Expenses)		$1,000.00			$	1,002.90				$0.75
Class C
Actual		$1,000.00			$	999.10				$1.32
Hypothetical (5% Return Before Expenses)		$1,000.00			$	1,002.39				$1.32
Class F
Actual		$1,000.00			$	999.60				$0.68
Hypothetical (5% Return Before Expenses)		$1,000.00			$	1,002.96				$0.68
Class I
Actual		$1,000.00			$	999.70				$0.61
Hypothetical (5% Return Before Expenses)		$1,000.00			$	1,003.03				$0.61
Class R2
Actual		$1,000.00			$	999.70				$1.03
Hypothetical (5% Return Before Expenses)		$1,000.00			$	1,003.02				$1.03
Class R3
Actual		$1,000.00			$	999.70				$0.96
Hypothetical (5% Return Before Expenses)		$1,000.00			$	1,003.03				$0.96

 

†

For each class of the Fund, net expenses are equal to the annualized expense ratio for such class (1.05% for Class A, 1.85% for Class C, 0.95% for Class F, 0.85% for Class I, 1.45% for Class R2 and 1.35% for Class R3) multiplied by the average account value over the period, multiplied by 26/365 (to reflect the period December 6, 2013, commencement of investment operations, to December 31, 2013).

 

 

Portfolio Holdings Presented by Sector

December 31, 2013

 

Sector*		%**
Automotive		1.82	%
Consumer Cyclicals		0.47	%
Consumer Discretionary		3.70	%
Consumer Services		1.99	%
Consumer Staples		5.34	%
Energy		11.56	%
Financial Services		28.79	%
Health Care		1.71	%

 

Sector*		% **
Integrated Oils		3.83	%
Materials and Processing		8.66	%
Technology		1.87	%
Telecommunications		7.39	%
Transportation		1.52	%
Utilities		9.43	%
Repurchase Agreement		11.92	%
Total		100.00	%

 

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

 

10

Emerging Markets Currency Fund

 

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 Account Value		Ending Account  Value		Expenses Paid During Period †
						7/1/13 -
		7/1/13		12/31/13		12/31/13
Class A
Actual		$1,000.00		$1,008.50		$5.16
Hypothetical (5% Return Before Expenses)		$1,000.00		$1,020.08		$5.19
Class B
Actual		$1,000.00		$1,004.50		$9.14
Hypothetical (5% Return Before Expenses)		$1,000.00		$1,016.07		$9.20
Class C
Actual		$1,000.00		$1,005.40		$8.34
Hypothetical (5% Return Before Expenses)		$1,000.00		$1,016.91		$8.39
Class F
Actual		$1,000.00		$1,009.00		$4.66
Hypothetical (5% Return Before Expenses)		$1,000.00		$1,020.59		$4.69
Class I
Actual		$1,000.00		$1,009.60		$4.15
Hypothetical (5% Return Before Expenses)		$1,000.00		$1,021.09		$4.18
Class P
Actual		$1,000.00		$1,007.50		$6.27
Hypothetical (5% Return Before Expenses)		$1,000.00		$1,018.93		$6.31
Class R2
Actual		$1,000.00		$1,006.50		$7.13
Hypothetical (5% Return Before Expenses)		$1,000.00		$1,018.08		$7.17
Class R3
Actual		$1,000.00		$1,007.10		$6.53
Hypothetical (5% Return Before Expenses)		$1,000.00		$1,018.71		$6.56

 

†

For each class of the Fund, net expenses are equal to the annualized expense ratio for such class (1.02% for Class A, 1.81% for Class B, 1.65% for Class C, 0.92% for Class F, 0.82% for Class I, 1.24% for Class P, 1.41% for Class R2 and 1.29% for Class R3) multiplied by the average account value over the period, multiplied by 184/365 (to reflect one-half year period).

 

 

Portfolio Holdings Presented by Sector

December 31, 2013

 

Sector*		% **
Asset-Backed		14.29	%
Automotive		1.30	%
Banking		8.31	%
Basic Industry		3.43	%
Capital Goods		1.43	%
Consumer Cyclical		1.76	%
Consumer Non-Cyclical		0.33	%
Energy		8.63	%
Financial Services		1.40	%
Foreign Government		5.49	%

 

Sector*		% **
Health Care		2.20	%
Insurance		1.15	%
Media		1.28	%
Mortgage-Backed		34.85	%
Real Estate		4.31	%
Services		2.74	%
Technology & Electronics		1.71	%
Telecommunications		1.92	%
Utility		3.47	%
Total		100.00	%

 

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

 

11

Emerging Markets Local Bond Fund

 

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 Account Value		Ending Account  Value				Expenses Paid During Period †
								7/1/13 -
		7/1/13		12/31/13				12/31/13
Class A
Actual		$1,000.00		$	981.70			$5.24
Hypothetical (5% Return Before Expenses)		$1,000.00		$	1,019.96			$5.35
Class C
Actual		$1,000.00		$	977.10			$9.22
Hypothetical (5% Return Before Expenses)		$1,000.00		$	1,016.05			$9.40
Class F
Actual		$1,000.00		$	981.50			$4.74
Hypothetical (5% Return Before Expenses)		$1,000.00		$	1,020.43			$4.84
Class I
Actual		$1,000.00		$	981.90			$4.25
Hypothetical (5% Return Before Expenses)		$1,000.00		$	1,020.92			$4.33
Class R2
Actual		$1,000.00		$	979.00			$7.23
Hypothetical (5% Return Before Expenses)		$1,000.00		$	1,017.90			$7.38
Class R3
Actual		$1,000.00		$	979.50			$6.74
Hypothetical (5% Return Before Expenses)		$1,000.00		$	1,018.41			$6.87

 

†

For each class of the Fund, net expenses are equal to the annualized expense ratio for such class (1.05% for Class A, 1.85% for Class C, 0.95% for Class F, 0.85% for Class I, 1.45% for Class R2 and 1.35% for Class R3) multiplied by the average account value over the period, multiplied by 184/365 (to reflect one-half year period).

 

 

Portfolio Holdings Presented by Sector

December 31, 2013

 

Sector*		% **
Consumer Services		1.38	%
Financial Services		12.32	%
Foreign Government		78.59	%
Integrated Oils		2.95	%
Telecommunications		1.46	%
Transportation		1.25	%
Utilities		2.05	%
Total		100.00	%

 

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

 

12

Multi-Asset Global Opportunity Fund

 

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 Account Value		Ending Account  Value		Expenses Paid During Period †#
						7/1/13 -
		7/1/13		12/31/13		12/31/13
Class A
Actual		$1,000.00		$1,108.60		$1.70
Hypothetical (5% Return Before Expenses)		$1,000.00		$1,023.60		$1.63
Class B
Actual		$1,000.00		$1,104.50		$5.62
Hypothetical (5% Return Before Expenses)		$1,000.00		$1,019.86		$5.40
Class C
Actual		$1,000.00		$1,104.80		$5.62
Hypothetical (5% Return Before Expenses)		$1,000.00		$1,019.88		$5.40
Class F
Actual		$1,000.00		$1,109.50		$0.90
Hypothetical (5% Return Before Expenses)		$1,000.00		$1,024.35		$0.87
Class I
Actual		$1,000.00		$1,110.30		$0.37
Hypothetical (5% Return Before Expenses)		$1,000.00		$1,024.85		$0.36
Class R2
Actual		$1,000.00		$1,106.20		$3.56
Hypothetical (5% Return Before Expenses)		$1,000.00		$1,021.83		$3.41
Class R3
Actual		$1,000.00		$1,107.70		$2.82
Hypothetical (5% Return Before Expenses)		$1,000.00		$1,022.51		$2.70

 

†	For each class of the Fund, net expenses are equal to the annualized expense ratio for such class (0.32% for Class A, 1.06% for Classes B and C, 0.17% for Class F, 0.07% for Class I, 0.67% for Class R2 and 0.53% for Class R3) multiplied by the average account value over the period, multiplied by 184/365 (to reflect one-half year period).
#	Does not include expenses of Underlying Funds in which Multi-Asset Global Opportunity Fund invests.

 

 

Portfolio Holdings Presented by Portfolio Allocation

December 31, 2013

 

 

Underlying Fund Name		% *
Lord Abbett Affiliated Fund, Inc.-Class I		1.86	%
Lord Abbett Equity Trust-Calibrated Large Cap Value Fund-Class I		0.52	%
Lord Abbett Equity Trust-Calibrated Mid Cap Value Fund-Class I		11.23	%
Lord Abbett Global Fund, Inc.-Emerging Markets Currency Fund-Class I		16.54	%
Lord Abbett Investment Trust-High Yield Fund-Class I		10.06	%
Lord Abbett Municipal Income Fund, Inc.-High Yield Municipal Bond Fund-Class I		2.14	%
Lord Abbett Securities Trust-International Dividend Income Fund-Class I		39.36	%
Lord Abbett Mid Cap Stock Fund, Inc.-Class I		14.52	%
Lord Abbett Investment Trust-Short Duration Income Fund-Class I		3.77	%
		100.00	%

 

*	Represents percent of total investments

 

13

Schedule of Investments

EMERGING MARKETS CORPORATE DEBT FUND December 31, 2013

 

Investments		Interest Rate		Maturity Date		Principal Amount (000)				Fair Value
CORPORATE BONDS 94.89%
Banks: Diversified 17.61%
Banco Bradesco SA †		5.90%		1/16/2021		$	200			$	200,500
Banco del Estado de Chile (Chile) †(a)		3.875%		2/8/2022			200				196,225
BBVA Bancomer SA †		6.75%		9/30/2022			150				160,125
ICICI Bank Ltd. (Hong Kong) †(a)		5.75%		11/16/2020			200				206,740
Korea Finance Corp. (South Korea) (a)		2.875%		8/22/2018			200				201,698
National Savings Bank (Sri Lanka) (a)		8.875%		9/18/2018			200				213,750
PKO Finance AB (Sweden) †(a)		4.63%		9/26/2022			200				199,850
Sberbank of Russia via SB Capital SA (Luxembourg) †(a)		6.125%		2/7/2022			200				211,500
Turkiye Halk Bankasi AS (Turkey) †(a)		3.875%		2/5/2020			200				175,980
Total											1,766,368
Banks: Money Center 2.09%
Export-Import Bank of Korea (South Korea) (a)		4.375%		9/15/2021			200				209,613
Building Materials 0.27%
Associated Materials LLC/AMH New Finance, Inc.		9.125%		11/1/2017			25				26,812
Chemicals 6.24%
Braskem Finance Ltd. (Brazil) †(a)		5.75%		4/15/2021			200				197,000
Grupo Idesa SA de CV (Maxico) †(a)		7.875%		12/18/2020			200				203,000
Phibro Animal Health Corp. †		9.25%		7/1/2018			25				26,750
SABIC Capital II BV (Netherlands) †(a)		2.625%		10/3/2018			200				199,400
Total											626,150
Diversified 1.96%
Tenedora Nemak SA de CV (Mexico) †(a)		5.50%		2/28/2023			200				196,500
Drugs 1.84%
CFR International SpA (Chile) †(a)		5.125%		12/6/2022			200				184,674
Electric: Power 3.92%
Korea Western Power Co., Ltd. (South Korea) †(a)		2.875%		10/10/2018			200				199,338
Perusahaan Listrik Negara PT (Indonesia) †(a)		5.50%		11/22/2021			200				193,500
Total											392,838
Financial Services 1.00%
Hyundai Capital America †		2.875%		8/9/2018			100				100,487
Financial: Miscellaneous 0.28%
Hercules Offshore, Inc. †		10.25%		4/1/2019			25				28,437

 

14

See Notes to Financial Statements.

Schedule of Investments (continued)

EMERGING MARKETS CORPORATE DEBT FUND December 31, 2013

 

Investments		Interest Rate		Maturity Date		Principal Amount (000)				Fair Value
Food 5.75%
Cencosud SA (Chile) †(a)		5.50%		1/20/2021		$	150			$	150,522
ESAL GmbH (Austria) †(a)		6.25%		2/5/2023			200				180,500
US Foods, Inc.		8.50%		6/30/2019			50				54,812
Want Want China Finance Ltd. (China) †(a)		1.875%		5/14/2018			200				190,994
Total											576,828
Gaming 0.25%
Mohegan Tribal Gaming Authority †		11.00%		9/15/2018			25				25,141
Household Equipment/Products 1.76%
Turkiye Sise ve Cam Fabrikalari AS (Turkey) †(a)		4.25%		5/9/2020			200				176,980
Investment Management Companies 2.07%
Gruposura Finance †		5.70%		5/18/2021			200				208,000
Jewelry, Watches & Gemstones 2.22%
ALROSA Finance SA (Luxembourg) †(a)		7.75%		11/3/2020			200				222,700
Leasing 0.28%
NESCO LLC/NESCO Holdings Corp. †		11.75%		4/15/2017			25				28,250
Media 2.14%
Myriad International Holdings BV (Netherlands) †(a)		6.00%		7/18/2020			200				215,000
Metal Fabricating 0.26%
Severstal Columbus LLC		10.25%		2/15/2018			25				26,625
Metals & Minerals: Miscellaneous 2.07%
AngloGold Ashanti Holdings plc		8.50%		7/30/2020			200				207,520
Oil 11.18%
Afren plc (United Kingdom) †(a)		6.625%		12/9/2020			200				201,000
Dolphin Energy Ltd. (United Arab Emirates) †(a)		5.50%		12/15/2021			200				219,000
GeoPark Latin America Ltd. Agencia en Chil (Chile) †(a)		7.50%		2/11/2020			200				204,500
Ras Laffan Liquefied Natural Gas Co., Ltd. III (Qatar) †(a)		6.75%		9/30/2019			250				295,055
Reliance Holdings USA, Inc. †		5.40%		2/14/2022			200				202,598
Total											1,122,153
Oil: Crude Producers 1.27%
Crosstex Energy LP/Crosstex Energy Finance Corp.		8.875%		2/15/2018			25				26,312
Pacific Rubiales Energy Corp. (Canada) †(a)		5.375%		1/26/2019			100				101,000
Total											127,312

 

See Notes to Financial Statements.

15

Schedule of Investments (continued)

EMERGING MARKETS CORPORATE DEBT FUND December 31, 2013

 

Investments		Interest Rate		Maturity Date		Principal Amount (000)				Fair Value
Oil: Integrated Domestic 2.10%
EDC Finance Ltd. (Ireland) †(a)		4.875%		4/17/2020		$	200			$	194,750
Pioneer Energy Services Corp.		9.875%		3/15/2018			15				15,975
Total											210,725
Oil: Integrated International 2.03%
PTT Exploration & Production pcl (Thailand) †(a)		3.707%		9/16/2018			200				203,359
Real Estate Investment Trusts 7.96%
Agile Property Holdings Ltd. (China) (a)		9.875%		3/20/2017			200				222,500
China Overseas Finance Cayman V Ltd.		3.95%		11/15/2022			200				175,801
Country Garden Holdings Co., Ltd. (China) †(a)		7.50%		1/10/2023			200				192,500
Franshion Development Ltd. †		6.75%		4/15/2021			200				208,000
Total											798,801
Retail 0.26%
Chinos Intermediate Holdings A, Inc. PIK †		7.75%		5/1/2019			25				25,625
Steel 0.49%
Vale Overseas Ltd. (Brazil) (a)		4.375%		1/11/2022			50				48,830
Technology 2.02%
Baidu, Inc. (China) (a)		3.25%		8/6/2018			200				202,660
Telecommunications 7.97%
Altice Finco SA (Luxembourg) †(a)		9.875%		12/15/2020			200				226,000
Bharti Airtel International Netherlands BV (Netherlands) †(a)		5.125%		3/11/2023			200				185,680
Millicom International Cellular SA (Luxembourg) †(a)		6.625%		10/15/2021			200				207,900
Qtel International Finance Ltd. †		3.25%		2/21/2023			200				179,572
Total											799,152
Transportation: Miscellaneous 1.36%
DP World Sukuk Ltd. †		6.25%		7/2/2017			100				110,250
Florida East Coast Railway Corp.		8.125%		2/1/2017			25				26,219
Total											136,469
Utilities: Electrical 4.08%
Abu Dhabi National Energy Co. (United Arab Emirates) †(a)		3.625%		1/12/2023			200				187,000
Israel Electric Corp. Ltd. (Israel) †(a)		7.25%		1/15/2019			200				222,486
Total											409,486

 

16

See Notes to Financial Statements.

Schedule of Investments (concluded)

EMERGING MARKETS CORPORATE DEBT FUND December 31, 2013

 

Investments		Interest Rate		Maturity Date		Principal Amount (000)				Fair Value
Utilities: Miscellaneous 2.16%
Inkia Energy Ltd. (Peru) †(a)		8.375%		4/4/2021		$	200			$	216,400
Total Corporate Bonds (cost $9,539,647)											9,519,895
SHORT-TERM INVESTMENT 12.85%
Repurchase Agreement
Repurchase Agreement dated 12/31/2013, Zero Coupon due 1/2/2014 with Fixed Income Clearing Corp. Co., collateralized by $1,470,000 of Federal Home Loan Mortgage Corp. at 2.00% due 1/30/2023; value: $1,316,595; proceeds: $1,288,787 (cost $1,288,787)							1,289			$	1,288,787
Total Investments in Securities 107.74% (cost $10,828,434)											10,808,682
Liabilities in Excess of Cash and Other Assets (7.74%)											(776,076)
Net Assets 100.00%										$	10,032,606

 

PIK		Payment-in-Kind.
†		Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and, unless registered under such Act or exempted from registration, may only be resold to qualified institutional buyers.
(a)		Foreign security traded in U.S. dollars.

 

 

The following is a summary of the inputs used as of December 31, 2013 in valuing the Fund’s investments carried at fair value ⁽¹⁾ :

 

Investment Type (2)(3)		Level 1				Level 2				Level 3				Total
Corporate Bonds		$	—			$	9,519,895			$	—			$	9,519,895
Repurchase Agreement			—				1,288,787				—				1,288,787
Total		$	—			$	10,808,682			$	—			$	10,808,682

 

(1)		Refer to note 2(p) 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 transfers during the period ended December 31, 2013.

 

See Notes to Financial Statements.

17

Schedule of Investments

EMERGING MARKETS CURRENCY FUND December 31, 2013

 

Investments		Interest Rate		Maturity Date		Principal Amount (000)				Fair Value
LONG-TERM INVESTMENTS 81.62%
ASSET-BACKED SECURITIES 13.90%
Automobiles 6.23%
Ally Auto Receivables Trust 2012-5 A3		0.62%		3/15/2017		$	1,020			$	1,020,804
AmeriCredit Automobile Receivables Trust 2011-4 A3		1.17%		5/9/2016			877				878,434
AmeriCredit Automobile Receivables Trust 2012-1 A2		0.91%		10/8/2015			27				26,798
AmeriCredit Automobile Receivables Trust 2012-3 A2		0.71%		12/8/2015			137				137,218
AmeriCredit Automobile Receivables Trust 2012-4 A2		0.49%		4/8/2016			406				405,517
AmeriCredit Automobile Receivables Trust 2012-4 A3		0.67%		6/8/2017			625				624,929
AmeriCredit Automobile Receivables Trust 2013-1 A3		0.61%		10/10/2017			425				424,376
AmeriCredit Automobile Receivables Trust 2013-1 B		1.07%		3/8/2018			257				255,772
AmeriCredit Automobile Receivables Trust 2013-3 B		1.58%		9/10/2018			250				250,738
AmeriCredit Automobile Receivables Trust 2013-5 A3		0.90%		9/10/2018			560				560,061
BMW Vehicle Lease Trust 2013-1 A3		0.54%		9/21/2015			483				483,248
California Republic Auto Receivables Trust 2013-1 A2 †		1.41%		9/17/2018			600				599,737
California Republic Auto Receivables Trust 2013-2 A2		1.23%		3/15/2019			570				569,846
Capital Auto Receivables Asset Trust 2013-1 A1		0.47%		3/20/2015			650				649,801
Capital Auto Receivables Asset Trust 2013-1 A2		0.62%		7/20/2016			938				938,014
CarMax Auto Owner Trust 2013-4 A3		0.80%		7/16/2018			450				449,553
Chrysler Capital Auto Receivables Trust 2013-AA A3 †		0.91%		4/16/2018			440				441,128
Ford Credit Auto Lease Trust 2013-B A3		0.76%		9/15/2016			500				500,865
Huntington Auto Trust 2012-2 A3		0.51%		4/17/2017			1,880				1,876,589
Hyundai Auto Lease Securitization Trust 2012-A A3 †		0.92%		8/17/2015			1,530				1,533,490
Hyundai Auto Lease Securitization Trust 2013-A A3 †		0.66%		6/15/2016			900				900,801
Hyundai Auto Receivables Trust 2012-C A3		0.53%		4/17/2017			1,350				1,351,017
Mercedes-Benz Auto Lease Trust 2013-A A2		0.49%		6/15/2015			1,400				1,400,370

 

18

See Notes to Financial Statements.

Schedule of Investments (continued)

EMERGING MARKETS CURRENCY FUND December 31, 2013

 

Investments		Interest Rate		Maturity Date		Principal Amount (000)				Fair Value
Automobiles (continued)
Mercedes-Benz Auto Lease Trust 2013-A A3		0.59%		2/15/2016		$	995			$	995,809
Mercedes-Benz Auto Lease Trust 2013-B A3		0.62%		7/15/2016			570				569,722
Porsche Innovative Lease Owner Trust 2013-1 A3 †		0.70%		8/22/2016			571				570,947
Santander Drive Auto Receivables Trust 2010-A A3 †		1.83%		11/17/2014			23				22,724
Santander Drive Auto Receivables Trust 2012-2 A2		0.91%		5/15/2015			2				1,609
Santander Drive Auto Receivables Trust 2012-3 A3		1.08%		4/15/2016			345				345,680
Santander Drive Auto Receivables Trust 2012-4 A2		0.79%		8/17/2015			99				98,682
Santander Drive Auto Receivables Trust 2012-6 A3		0.62%		7/15/2016			910				910,580
Santander Drive Auto Receivables Trust 2013-2 A2		0.47%		3/15/2016			704				704,413
Santander Drive Auto Receivables Trust 2013-3 A2		0.55%		9/15/2016			472				471,626
Santander Drive Auto Receivables Trust 2013-3 B		1.19%		5/15/2018			420				418,370
Volkswagen Auto Loan Enhanced Trust 2012-2 A3		0.46%		1/20/2017			2,050				2,049,200
Volkswagen Auto Loan Enhanced Trust 2013-2 A3		0.70%		4/20/2018			900				898,540
World Omni Automobile Lease Securitization
Trust 2013-A A2A		0.73%		5/16/2016			475				475,574
Total											24,812,582
Credit Cards 3.77%
American Express Credit Account Master Trust 2009-2 A		1.417%	#	3/15/2017			1,200				1,209,080
Bank of America Credit Card Trust 2007-A3		0.187%	#	11/15/2016			750				749,868
Bank of America Credit Card Trust 2007-A10		0.237%	#	12/15/2016			1,500				1,500,025
Bank One Issuance Trust 2004-A3		0.337%	#	2/15/2017			755				755,376
Chase Issuance Trust 2012-A1		0.267%	#	5/16/2016			1,675				1,675,035
Citibank Credit Card Issuance Trust 2002-A4		0.418%	#	6/7/2016			1,140				1,140,479
Citibank Omni Master Trust 2009-A14A †		2.917%	#	8/15/2018			2,080				2,111,708
Discover Card Execution Note Trust 2011-A1		0.517%	#	8/15/2016			1,225				1,225,472
Dryrock Issuance Trust 2012-1 A		0.317%	#	8/15/2017			1,000				999,250
GE Capital Credit Card Master Note Trust 2011-1 A		0.717%	#	1/15/2017			1,000				1,000,182
World Financial Network Credit Card Master Trust 2011-A		1.68%		8/15/2018			400				403,031
World Financial Network Credit Card Master Trust 2013-B A		0.91%		3/16/2020			2,250				2,236,941
Total											15,006,447

 

See Notes to Financial Statements.

19

Schedule of Investments (continued)

EMERGING MARKETS CURRENCY FUND December 31, 2013

 

Investments		Interest Rate		Maturity Date		Principal Amount (000)				Fair Value
Other 3.90%
Fairway Loan Funding Co. 2006-1A A3L †		0.904%	#	10/17/2018		$	600			$	582,204
HLSS Servicer Advance Receivables Backed Notes 2012-T2 A2 †		1.99%		10/15/2045			750				755,323
HLSS Servicer Advance Receivables Backed Notes 2013-T1 A2 †		1.495%		1/16/2046			1,660				1,655,150
HLSS Servicer Advance Receivables Backed Notes 2013-T2 A2 †		1.147%		5/16/2044			500				497,553
HLSS Servicer Advance Receivables Backed Notes 2013-T3 A3 †		1.793%		5/15/2046			500				489,323
HLSS Servicer Advance Receivables Backed Notes 2013-T6 AT6 †		1.287%		9/15/2044			630				629,787
HLSS Servicer Advance Receivables Backed Notes 2013-T7 A7 †		1.79%		11/15/2046			750				748,886
JFIN Revolver CLO Ltd. 2013-1A A †		1.497%	#	1/20/2021			750				742,500
SLM Student Loan Trust 2006-4 A4		0.318%	#	4/25/2023			999				999,751
SLM Student Loan Trust 2007-2 A2		0.238%	#	7/25/2017			586				584,744
SLM Student Loan Trust 2007-7 A2 (a)		0.438%	#	1/25/2016			359				358,950
SLM Student Loan Trust 2010-A 2A †		3.417%	#	5/16/2044			1,747				1,853,212
SLM Student Loan Trust 2010-C A1 †		1.817%	#	12/15/2017			37				37,497
SLM Student Loan Trust 2011-1 A1		0.685%	#	3/25/2026			987				988,653
SLM Student Loan Trust 2011-A A1 †		1.167%	#	10/15/2024			686				688,177
SLM Student Loan Trust 2011-B A1 †		1.017%	#	12/16/2024			897				899,158
SLM Student Loan Trust 2011-C A1 †		1.567%	#	12/15/2023			349				351,396
SLM Student Loan Trust 2012-A A1 †		1.567%	#	8/15/2025			686				692,748
SLM Student Loan Trust 2012-C A1 †		1.267%	#	8/15/2023			871				876,148
SLM Student Loan Trust 2012-E A1 †		0.917%	#	10/16/2023			337				337,483
SLM Student Loan Trust 2013-B A1 †		0.817%	#	7/15/2022			755				755,095
Total											15,523,738
Total Asset-Backed Securities (cost $55,375,121)											55,342,767
CORPORATE BONDS 31.87%
Aerospace & Defense 0.75%
Rockwell Collins, Inc.		0.593%	#	12/15/2016			3,000				3,002,154
Auto Loans 0.95%
Hyundai Capital America †		3.75%		4/6/2016			750				785,985
PACCAR Financial Corp.		0.842%	#	12/6/2018			3,000				3,007,929
Total											3,793,914

 

20

See Notes to Financial Statements.

Schedule of Investments (continued)

EMERGING MARKETS CURRENCY FUND December 31, 2013

 

Investments		Interest Rate		Maturity Date		Principal Amount (000)				Fair Value
Auto Parts & Equipment 0.13%
Delphi Corp.		5.875%		5/15/2019		$	500			$	531,250
Banking 6.68%
Abbey National Treasury Services plc (United Kingdom) (b)		1.818%	#	4/25/2014			500				502,236
AmSouth Bank		5.20%		4/1/2015			1,250				1,309,772
Associated Banc-Corp		1.875%		3/12/2014			1,000				1,001,422
Bank of America Corp.		7.75%		8/15/2015			747				822,179
Bank of America Corp.		10.20%		7/15/2015			3,000				3,372,600
Citigroup, Inc.		0.512%	#	6/9/2016			2,000				1,968,746
Comerica Bank		8.375%		7/15/2024			250				260,091
Compagnie de Financement Foncier SA (France) †(b)		0.992%	#	4/17/2014			1,300				1,301,832
Credit Suisse AG (Guernsey) †(b)		1.625%		3/6/2015			800				810,469
DnB NOR Boligkreditt AS (Norway) †(b)		2.10%		10/14/2016			2,140				2,195,640
Goldman Sachs Group, Inc. (The)		1.238%	#	2/7/2014			1,000				1,000,723
Goldman Sachs Group, Inc. (The)		2.238%	#	8/24/2016			250				254,358
Morgan Stanley		0.724%	#	10/15/2015			2,000				1,996,662
Regions Financial Corp.		7.75%		11/10/2014			325				342,964
Santander Holdings USA, Inc.		4.625%		4/19/2016			250				266,734
Sparebank 1 Boligkreditt AS (Norway) †(b)		2.30%		6/30/2018			1,280				1,327,045
Wachovia Corp.		0.576%	#	10/28/2015			4,000				3,997,560
Wachovia Corp.		0.614%	#	10/15/2016			3,000				2,985,618
Zions Bancorporation		4.00%		6/20/2016			832				865,784
Total											26,582,435
Building Materials 0.07%
Owens Corning, Inc.		6.50%		12/1/2016			250				277,608
Chemicals 0.83%
Rhodia SA (France) †(b)		6.875%		9/15/2020			1,650				1,827,223
Yara International ASA (Norway) †(b)		5.25%		12/15/2014			1,435				1,488,570
Total											3,315,793
Consumer/Commercial/Lease Financing 0.39%
Air Lease Corp.		5.625%		4/1/2017			1,402				1,547,458
Consumer Products 0.25%
Avon Products, Inc.		2.375%		3/15/2016			1,000				1,007,168

 

See Notes to Financial Statements.

21

Schedule of Investments (continued)

EMERGING MARKETS CURRENCY FUND December 31, 2013

 

Investments		Interest Rate		Maturity Date		Principal Amount (000)				Fair Value
Discount Store 0.27%
Dollar General Corp.		4.125%		7/15/2017		$	1,000			$	1,062,596
Diversified Capital Goods 0.45%
Smiths Group plc (United Kingdom) †(b)		6.05%		5/15/2014			1,500				1,520,613
Tyco Electronics Group SA (Luxemburg) (b)		6.55%		10/1/2017			234				268,014
Total											1,788,627
Electric: Distribution/Transportation 0.06%
SteelRiver Transmission Co. LLC †		4.71%		6/30/2017			243				251,788
Electric: Integrated 2.63%
Cleveland Electric Illuminating Co. (The)		5.70%		4/1/2017			1,000				1,084,082
Dayton Power & Light Co. (The) †		1.875%		9/15/2016			250				252,208
Duquesne Light Holdings, Inc.		5.50%		8/15/2015			500				533,823
Entergy Corp.		3.625%		9/15/2015			1,585				1,635,647
Entergy Corp.		4.70%		1/15/2017			1,500				1,613,970
Exelon Generation Co. LLC		6.20%		10/1/2017			375				424,126
Jersey Central Power & Light Co.		5.625%		5/1/2016			1,375				1,494,679
Pennsylvania Electric Co.		6.05%		9/1/2017			2,000				2,231,162
Public Service Co. of New Mexico		7.95%		5/15/2018			1,000				1,189,790
Total											10,459,487
Electronics 0.32%
Altera Corp.		1.75%		5/15/2017			1,285				1,266,276
Energy: Exploration & Production 2.63%
Anadarko Petroleum Corp.		7.625%		3/15/2014			3,375				3,420,043
Continental Resources, Inc.		7.125%		4/1/2021			1,000				1,138,750
Continental Resources, Inc.		8.25%		10/1/2019			750				823,125
Noble Energy, Inc.		5.25%		4/15/2014			435				440,413
Petrohawk Energy Corp.		6.25%		6/1/2019			628				693,626
Petrohawk Energy Corp.		7.25%		8/15/2018			350				378,175
Plains Exploration & Production Co.		7.625%		4/1/2020			3,250				3,587,850
Total											10,481,982
Food & Drug Retailers 0.26%
Safeway, Inc.		5.625%		8/15/2014			1,000				1,025,779
Gas Distribution 2.36%
Crosstex Energy LP/Crosstex Energy Finance Corp.		8.875%		2/15/2018			1,206				1,269,315
Energy Transfer Partners LP		6.125%		2/15/2017			425				473,052

 

22

See Notes to Financial Statements.

Schedule of Investments (continued)

EMERGING MARKETS CURRENCY FUND December 31, 2013

 

Investments		Interest Rate		Maturity Date		Principal Amount (000)				Fair Value
Gas Distribution (continued)
Energy Transfer Partners LP		8.50%		4/15/2014		$	800			$	816,889
Southeast Supply Header LLC †		4.85%		8/15/2014			1,500				1,535,316
Sunoco Logistics Partners Operations LP		8.75%		2/15/2014			2,250				2,269,881
TransCanada PipeLines Ltd. (Canada) (b)		0.927%	#	6/30/2016			3,000				3,030,057
Total											9,394,510
Hotels 0.73%
Host Hotels & Resorts LP		6.00%		11/1/2020			2,350				2,576,509
Wyndham Worldwide Corp.		6.00%		12/1/2016			292				322,338
Total											2,898,847
Investments & Miscellaneous Financial Services 0.76%
Ares Capital Corp.		4.875%		11/30/2018			500				512,338
Icahn Enterprises LP/Icahn Enterprises Finance Corp.		7.75%		1/15/2016			500				510,625
Kayne Anderson MLP Investment Co. †		1.494%	#	8/19/2016			2,000				2,000,000
Total											3,022,963
Life Insurance 0.34%
UnumProvident Finance Co. plc (United Kingdom) †(b)		6.85%		11/15/2015			1,250				1,368,753
Media: Diversified 0.51%
NBCUniversal Enterprise, Inc. †		0.929%	#	4/15/2018			2,036				2,045,600
Medical Products 0.44%
Hospira, Inc.		6.05%		3/30/2017			1,000				1,104,209
Life Technologies Corp.		3.50%		1/15/2016			625				651,353
Total											1,755,562
Metals/Mining (Excluding Steel) 2.06%
Anglo American Capital plc (United Kingdom) †(b)		9.375%		4/8/2014			3,214				3,285,470
Glencore Canada Corp. (Canada) (b)		5.50%		6/15/2017			350				383,146
Glencore Funding LLC †		1.396%	#	5/27/2016			1,200				1,195,088
Glencore Funding LLC †		6.00%		4/15/2014			2,500				2,536,133
Xstrata Finance Canada Ltd. (Canada) †(b)		3.60%		1/15/2017			750				782,864
Total											8,182,701
Oil Field Equipment & Services 0.19%
National Oilwell Varco, Inc.		6.125%		8/15/2015			750				750,847

 

See Notes to Financial Statements.

23

Schedule of Investments (continued)

EMERGING MARKETS CURRENCY FUND December 31, 2013

 

Investments		Interest Rate		Maturity Date		Principal Amount (000)				Fair Value
Pharmaceuticals 1.26%
Mylan, Inc. †		6.00%		11/15/2018		$	250			$	266,456
Mylan, Inc. †		7.875%		7/15/2020			2,500				2,829,892
Warner Chilcott Co. LLC/Warner Chilcott
Finance LLC		7.75%		9/15/2018			1,750				1,903,125
Total											4,999,473
Railroads 0.50%
Kansas City Southern de Mexico SA de CV (Mexico) (b)		0.937%	#	10/28/2016			2,000				2,001,932
Real Estate Investment Trusts 1.68%
BRE Properties, Inc.		4.697%		3/17/2014			1,750				1,763,557
Healthcare Realty Trust, Inc.		6.50%		1/17/2017			1,500				1,683,351
Hospitality Properties Trust		5.125%		2/15/2015			1,968				2,013,331
Kilroy Realty LP		5.00%		11/3/2015			350				373,486
Regency Centers LP		5.25%		8/1/2015			787				835,909
Total											6,669,634
Restaurants 0.20%
Darden Restaurants, Inc.		6.20%		10/15/2017			700				780,545
Software/Services 0.81%
Dun & Bradstreet Corp. (The)		3.25%		12/1/2017			500				505,843
Fidelity National Information Services, Inc.		7.875%		7/15/2020			2,500				2,727,757
Total											3,233,600
Specialty Retail 0.96%
QVC, Inc. †		7.375%		10/15/2020			2,913				3,141,787
QVC, Inc. †		7.50%		10/1/2019			625				673,778
Total											3,815,565
Support: Services 0.56%
Expedia, Inc.		7.456%		8/15/2018			200				233,067
URS Corp. †		3.85%		4/1/2017			500				509,749
Western Union Co. (The)		1.239%	#	8/21/2015			1,500				1,505,730
Total											2,248,546
Telecommunications: Integrated/Services 1.33%
AT&T, Inc.		1.146%	#	11/27/2018			3,000				3,026,451
Qwest Corp.		7.50%		10/1/2014			1,500				1,574,748
Qwest Corp.		7.625%		6/15/2015			625				676,972
Total											5,278,171

 

24

See Notes to Financial Statements.

Schedule of Investments (continued)

EMERGING MARKETS CURRENCY FUND December 31, 2013

 

Investments		Interest Rate		Maturity Date		Principal Amount (000)				Fair Value
Telecommunications: Wireless 0.51%
American Tower Corp.		7.00%		10/15/2017		$	1,750			$	2,018,741
Total Corporate Bonds (cost $126,487,861)											126,860,305
FLOATING RATE LOANS (c) 1.39%
Aerospace/Defense 0.16%
Alliant Techsystems, Inc. Term Loan B		3.50%		11/2/2020			650				652,710
Gaming 0.62%
Las Vegas Sands LLC Term Loan B		3.25%		12/20/2020			1,500				1,501,252
Seminole Tribe of Florida Term Loan		3.00%		4/29/2020			982				982,327
Total											2,483,579
Health Care 0.41%
Fresenius US Finance I, Inc. Tranche B Term Loan (Germany) (b)		2.25%		8/7/2019			1,616				1,619,990
Telecommunications 0.20%
Activision Blizzard, Inc. Term Loan B		3.25%		10/12/2020			787				793,517
Total Floating Rate Loans (cost $5,544,345)											5,549,796
FOREIGN BOND (d) 0.45%
Netherlands
Ziggo Finance BV † (cost $1,632,804)		6.125%		11/15/2017		EUR	1,250				1,782,305
FOREIGN GOVERNMENT OBLIGATION 0.07%
Brazil
Republic of Brazil (b) (cost $285,194)		8.00%		1/15/2018		$	250				278,125
GOVERNMENT SPONSORED ENTERPRISES BOND 0.15%
Federal Home Loan Mortgage Corp. (cost $623,876)		0.875%		3/7/2018			625				607,737
GOVERNMENT SPONSORED ENTERPRISES COLLATERALIZED MORTGAGE OBLIGATIONS 2.40%
Federal Home Loan Mortgage Corp. K005 A1		3.484%		4/25/2019			1,436				1,519,658
Federal Home Loan Mortgage Corp. K006 A1		3.398%		7/25/2019			1,475				1,564,738
Federal Home Loan Mortgage Corp. K008 A1		2.746%		12/25/2019			689				717,163
Federal Home Loan Mortgage Corp. K009 A1		2.757%		5/25/2020			661				688,421
Federal Home Loan Mortgage Corp. K706 A1		1.691%		6/25/2018			615				622,467
Federal National Mortgage Assoc. 2011-M3 A1		2.072%		7/25/2021			694				708,159

 

See Notes to Financial Statements.

25

Schedule of Investments (continued)

EMERGING MARKETS CURRENCY FUND December 31, 2013

 

Investments		Interest Rate		Maturity Date		Principal Amount (000)				Fair Value
GOVERNMENT SPONSORED ENTERPRISES COLLATERALIZED MORTGAGE OBLIGATIONS (continued)
Federal National Mortgage Assoc. 2011-M8 A1		1.977%		8/25/2021		$	1,713			$	1,730,859
Federal National Mortgage Assoc. 2012-M2 A1		1.824%		2/25/2022			669				664,612
Federal National Mortgage Assoc. 2013-M14 A		1.70%		8/25/2018			829				823,384
Federal National Mortgage Assoc. 2013-M5 ASQ2		0.595%		8/25/2015			495				494,576
Total Government Sponsored Enterprises Collateralized Mortgage Obligations (cost $9,348,071)											9,534,037
GOVERNMENT SPONSORED ENTERPRISES PASS-THROUGHS 11.27%
Federal Home Loan Mortgage Corp.		2.363%	#	6/1/2038			263				280,293
Federal Home Loan Mortgage Corp.		2.37%	#	10/1/2035			703				747,023
Federal Home Loan Mortgage Corp.		2.398%	#	4/1/2038			1,051				1,116,095
Federal Home Loan Mortgage Corp.		2.503%	#	12/1/2036			895				948,843
Federal Home Loan Mortgage Corp.		2.515%	#	11/1/2038			991				1,046,651
Federal Home Loan Mortgage Corp.		2.524%	#	12/1/2037			473				501,833
Federal Home Loan Mortgage Corp.		2.533%	#	2/1/2038			826				888,434
Federal Home Loan Mortgage Corp.		2.535%	#	12/1/2035			975				1,041,601
Federal Home Loan Mortgage Corp.		2.542%	#	4/1/2037			265				280,941
Federal Home Loan Mortgage Corp.		2.584%	#	5/1/2035			451				479,624
Federal Home Loan Mortgage Corp.		2.608%	#	4/1/2037			589				623,557
Federal Home Loan Mortgage Corp.		2.609%	#	2/1/2035			1,805				1,909,761
Federal Home Loan Mortgage Corp.		2.619%	#	3/1/2036			657				699,068
Federal Home Loan Mortgage Corp.		2.625%	#	10/1/2038			412				437,270
Federal Home Loan Mortgage Corp.		2.636%	#	12/1/2035			731				785,782
Federal Home Loan Mortgage Corp.		2.641%	#	10/1/2039			623				660,926
Federal Home Loan Mortgage Corp.		2.653%	#	3/1/2038			700				742,455
Federal Home Loan Mortgage Corp.		2.681%	#	5/1/2036			510				546,182
Federal Home Loan Mortgage Corp.		2.74%	#	9/1/2036			800				853,663
Federal Home Loan Mortgage Corp.		2.945%	#	2/1/2037			953				1,019,488
Federal Home Loan Mortgage Corp.		3.332%	#	6/1/2037			362				382,812
Federal Home Loan Mortgage Corp. (a)		5.00%		5/1/2021			134				142,504
Federal Home Loan Mortgage Corp.		5.061%	#	7/1/2036			258				274,593
Federal National Mortgage Assoc.		1.934%	#	11/1/2034			942				996,435
Federal National Mortgage Assoc.		1.935%	#	1/1/2035			860				913,184
Federal National Mortgage Assoc.		2.105%	#	12/1/2035			745				780,873
Federal National Mortgage Assoc.		2.109%	#	6/1/2038			966				1,021,541
Federal National Mortgage Assoc.		2.264%	#	2/1/2036			473				502,381
Federal National Mortgage Assoc.		2.283%	#	1/1/2036			1,527				1,613,243
Federal National Mortgage Assoc.		2.289%	#	3/1/2039			450				477,201
Federal National Mortgage Assoc.		2.331%	#	11/1/2036			1,850				1,968,790

 

26

See Notes to Financial Statements.

Schedule of Investments (continued)

EMERGING MARKETS CURRENCY FUND December 31, 2013

 

Investments		Interest Rate		Maturity Date		Principal Amount (000)				Fair Value
GOVERNMENT SPONSORED ENTERPRISES PASS-THROUGHS (continued)
Federal National Mortgage Assoc.		2.349%	#	8/1/2037		$	537			$	568,530
Federal National Mortgage Assoc.		2.366%	#	1/1/2038			466				497,818
Federal National Mortgage Assoc.		2.372%	#	4/1/2040			1,605				1,700,786
Federal National Mortgage Assoc.		2.394%	#	3/1/2038			294				316,345
Federal National Mortgage Assoc.		2.397%	#	11/1/2036			208				221,503
Federal National Mortgage Assoc.		2.425%	#	9/1/2038			388				411,040
Federal National Mortgage Assoc.		2.433%	#	11/1/2038			1,714				1,821,519
Federal National Mortgage Assoc.		2.434%	#	1/1/2038			502				534,781
Federal National Mortgage Assoc.		2.441%	#	8/1/2038			279				295,848
Federal National Mortgage Assoc.		2.45%	#	9/1/2037			212				224,138
Federal National Mortgage Assoc.		2.494%	#	2/1/2038			248				262,511
Federal National Mortgage Assoc.		2.505%	#	6/1/2038			207				220,316
Federal National Mortgage Assoc.		2.533%	#	10/1/2036			736				777,047
Federal National Mortgage Assoc.		2.611%	#	11/1/2038			697				738,523
Federal National Mortgage Assoc.		2.688%	#	12/1/2038			252				269,992
Federal National Mortgage Assoc.		2.95%		3/1/2015			1,000				1,018,942
Federal National Mortgage Assoc.		3.18%		11/1/2014			1,127				1,140,194
Federal National Mortgage Assoc.		4.50%		11/1/2018			4,195				4,473,139
Federal National Mortgage Assoc.		5.50%		2/1/2034			1,062				1,171,928
Federal National Mortgage Assoc.		5.50%		8/1/2037			2,051				2,258,745
Federal National Mortgage Assoc.		5.50%		11/1/2034			1,156				1,274,834
Total Government Sponsored Enterprises Pass-Throughs (cost $44,802,162)											44,881,526
NON-AGENCY COMMERCIAL MORTGAGE-BACKED SECURITIES 20.12%
Americold LLC Trust 2010-ARTA A1 †		3.847%		1/14/2029			454				474,764
Banc of America Commercial Mortgage, Inc. 2005-2 AAB		4.742%		7/10/2043			6				5,633
Banc of America Re-REMIC Trust 2011-STRP A3 †		2.415%		11/17/2039			238				238,148
Banc of America Re-REMIC Trust 2011-STRP A4 †		1.501%		5/17/2046			411				410,808
Boca Hotel Portfolio Trust 2013-BOCA D †		3.217%	#	8/15/2026			360				361,044
CFCRE Commercial Mortgage Trust 2011-C2 A2		3.061%		12/15/2047			400				414,406
Commercial Mortgage Pass-Through Certificates 2007-FL14 AJ †		0.347%	#	6/15/2022			364				360,058
Commercial Mortgage Pass-Through Certificates 2010-C1 A1 †		3.156%		7/10/2046			1,630				1,679,897
Commercial Mortgage Pass-Through Certificates 2011-FL1 C †		4.814%	#	7/17/2028			226				228,258
Commercial Mortgage Pass-Through Certificates 2012-9W57 A †		2.365%		2/10/2029			2,135				2,186,620

 

See Notes to Financial Statements.

27

Schedule of Investments (continued)

EMERGING MARKETS CURRENCY FUND December 31, 2013

 

Investments		Interest Rate		Maturity Date		Principal Amount (000)				Fair Value
NON-AGENCY COMMERCIAL MORTGAGE-BACKED SECURITIES (continued)
Commercial Mortgage Pass-Through Certificates 2012-9W57 X †		1.399%	#	2/10/2029		$	8,000			$	325,712
Commercial Mortgage Pass-Through Certificates 2012-CR1 A1		1.116%		5/15/2045			1,054				1,056,667
Commercial Mortgage Pass-Through Certificates 2012-CR3 A2		1.765%		10/15/2045			2,210				2,193,998
Commercial Mortgage Pass-Through Certificates 2012-FL2 A †		2.294%	#	9/17/2029			1,491				1,510,533
Commercial Mortgage Pass-Through Certificates 2013-CR6 A2		2.122%		3/10/2046			2,200				2,199,325
Commercial Mortgage Pass-Through Certificates 2013-LC6 A2		1.906%		1/10/2046			2,000				1,984,814
Credit Suisse Mortgage Capital Certificates 2013-TH1 A1 †		2.13%		2/25/2043			638				581,099
DBUBS Mortgage Trust 2011-LC1A A1 †		3.742%		11/10/2046			2,187				2,299,937
DBUBS Mortgage Trust 2011-LC2A A1 †		3.527%		7/10/2044			1,114				1,176,342
DBUBS Mortgage Trust 2011-LC2A A2 †		3.386%		7/10/2044			1,205				1,257,883
DBUBS Mortgage Trust 2011-LC3A A2		3.642%		8/10/2044			1,850				1,945,307
DDR Corp. 2009-DDR1 A †		3.807%		10/14/2022			2,108				2,144,593
DDR Corp. 2009-DDR1 B †		5.73%		10/14/2022			500				514,797
Del Coronado Trust 2013 HDC A †		0.967%	#	3/15/2026			1,200				1,195,202
Extended Stay America Trust 2013-ESH7 B7		3.604%		12/5/2031			1,000				980,070
Extended Stay America Trust 2013-ESH7 C7 †		3.902%		12/5/2031			1,030				1,002,694
Fosse Master Issuer plc 2012-1A 2A2 †		1.646%	#	10/18/2054			280				283,830
Fosse Master Issuer plc 2012-1A 2B1 †		2.196%	#	10/18/2054			350				356,186
Granite Master Issuer plc 2005-1 A4		0.367%	#	12/20/2054			516				510,331
Granite Master Issuer plc 2005-2 A6		0.427%	#	12/20/2054			275				272,169
Granite Master Issuer plc 2006-4 A4		0.267%	#	12/20/2054			406				400,902
Granite Master Issuer plc 2007-1 3A1		0.367%	#	12/20/2054			97				95,882
Granite Master Issuer plc 2007-2 3A1		0.344%	#	12/17/2054			902				892,607
Greenwich Capital Commercial Funding Corp. 2007-GG9 A2		5.381%		3/10/2039			531				543,655
GS Mortgage Securities Corp. II 2010-C1 A1 †		3.679%		8/10/2043			1,128				1,189,137
GS Mortgage Securities Corp. II 2010-C2 A1 †		3.849%		12/10/2043			1,651				1,742,372
GS Mortgage Securities Corp. II 2011-GC3 A1 †		2.331%		3/10/2044			605				611,318
GS Mortgage Securities Corp. II 2011-GC3 A2 †		3.645%		3/10/2044			1,600				1,677,878
GS Mortgage Securities Corp. II 2011-GC5 A2		2.999%		8/10/2044			1,000				1,040,883
GS Mortgage Securities Corp. II 2013-KYO C †		1.918%	#	11/8/2029			700				697,562
GS Mortgage Securities Trust 2012-GCJ7 A1		1.144%		5/10/2045			1,039				1,042,083
Holmes Master Issuer plc 2010-1A A2 †		1.644%	#	10/15/2054			235				235,490

 

28

See Notes to Financial Statements.

Schedule of Investments (continued)

EMERGING MARKETS CURRENCY FUND December 31, 2013

 

Investments		Interest Rate		Maturity Date		Principal Amount (000)				Fair Value
NON-AGENCY COMMERCIAL MORTGAGE-BACKED SECURITIES (continued)
JPMorgan Chase Commercial Mortgage Securities Corp. 2010-C2 A1 †		2.749%		11/15/2043		$	1,518			$	1,558,149
JPMorgan Chase Commercial Mortgage Securities Corp. 2011-PLSD A2 †		3.364%		11/13/2044			2,000				2,098,071
JPMorgan Chase Commercial Mortgage Securities Corp. 2012-C8 A2		1.797%		10/15/2045			2,250				2,246,665
JPMorgan Chase Commercial Mortgage Securities Corp. 2012-LC9 A2		1.677%		12/15/2047			1,100				1,091,077
JPMorgan Chase Commercial Mortgage Securities Trust 2007-LD11 A2		5.798%	#	6/15/2049			462				465,656
Merrill Lynch Floating Trust 2008-LAQA A1 †		0.705%	#	7/9/2021			593				592,337
Merrill Lynch Floating Trust 2008-LAQA A2 †		0.705%	#	7/9/2021			2,250				2,228,841
Merrill Lynch Mortgage Trust 2005-CIP1 A2		4.96%		7/12/2038			190				190,492
Merrill Lynch Mortgage Trust 2005-MKB2 A2		4.806%		9/12/2042			3				2,660
Merrill Lynch/Countrywide Commercial Mortgage Trust 2006-4 AM		5.204%		12/12/2049			1,100				1,202,813
Merrill Lynch/Countrywide Commercial Mortgage Trust 2007-7 A3FL †		0.379%	#	6/12/2050			89				88,550
Morgan Stanley Bank of America Merrill Lynch Trust 2012-C5 A2		1.972%		8/15/2045			680				691,439
Morgan Stanley Bank of America Merrill Lynch Trust 2012-C6 A2		1.868%		11/15/2045			2,210				2,209,282
Morgan Stanley Bank of America Merrill Lynch Trust 2012-CKSV A1 †		2.117%		10/15/2030			397				387,334
Morgan Stanley Bank of America Merrill Lynch Trust 2013-C9 A2		1.97%		5/15/2046			1,720				1,721,415
Morgan Stanley Capital I 2007-HQ12 A3		5.601%	#	4/12/2049			955				959,170
Morgan Stanley Capital I 2011-C1 A2 †		3.884%		9/15/2047			1,515				1,592,951
Morgan Stanley Capital I 2011-C2 A2 †		3.476%		6/15/2044			750				790,558
Morgan Stanley Capital I 2012-STAR A1 †		2.084%		8/5/2034			888				873,498
RBSCF Trust 2010-MB1 A2 †		3.686%		4/15/2024			1,580				1,623,958
RBSCF Trust 2010-RR3 WBTB †		5.922%	#	2/16/2051			1,500				1,658,546
Sequoia Mortgage Trust 2012-4 A3		2.069%		9/25/2042			458				424,774
Sequoia Mortgage Trust 2012-6 A2		1.808%		12/25/2042			963				848,675
Sequoia Mortgage Trust 2013-2 A		1.874%		2/25/2043			673				577,009
Silverstone Master Issuer plc 2011-1A †		1.792%	#	1/21/2055			400				403,497
UBS-Barclays Commercial Mortgage Trust 2012-C2 A2		2.113%		5/10/2063			2,100				2,123,550
UBS-Barclays Commercial Mortgage Trust 2012-C4 A2		1.712%		12/10/2045			1,000				997,125

 

See Notes to Financial Statements.

29

Schedule of Investments (continued)

EMERGING MARKETS CURRENCY FUND December 31, 2013

 

Investments		Interest Rate		Maturity Date		Principal Amount (000)				Fair Value
NON-AGENCY COMMERCIAL MORTGAGE-BACKED SECURITIES (continued)
Vornado DP LLC 2010-VNO A1 †		2.97%		9/13/2028		$	718			$	742,855
Wachovia Bank Commercial Mortgage Trust 2005-C18 APB		4.807%		4/15/2042			211				214,722
Wachovia Bank Commercial Mortgage Trust 2006-C27 AM		5.795%		7/15/2045			645				703,741
Wachovia Bank Commercial Mortgage Trust 2007-C30 A3		5.246%		12/15/2043			277				278,938
Wells Fargo Commercial Mortgage Trust 2012-LC5 A2		1.844%		10/15/2045			540				538,433
WF-RBS Commercial Mortgage Trust 2011-C2 A2 †		3.791%		2/15/2044			1,500				1,573,713
WF-RBS Commercial Mortgage Trust 2011-C4 A1 †		1.607%		6/15/2044			526				530,064
WF-RBS Commercial Mortgage Trust 2011-C5 A3		3.526%		11/15/2044			1,000				1,039,775
WF-RBS Commercial Mortgage Trust 2012-C10 A2		1.765%		12/15/2045			420				416,443
WF-RBS Commercial Mortgage Trust 2012-C7 A1		2.30%		6/15/2045			479				476,398
WF-RBS Commercial Mortgage Trust 2012-C8 A2		1.881%		8/15/2045			1,430				1,432,053
WF-RBS Commercial Mortgage Trust 2013-C11 A2		2.029%		3/15/2045			2,200				2,197,990
Total Non-Agency Commercial Mortgage-Backed Securities (cost $81,251,159)											80,114,111
Total Long-Term Investments (cost $325,350,593)											324,950,709
SHORT-TERM INVESTMENTS 13.94%
COMMERCIAL PAPER 1.70%
Electric: Integrated 0.13%
Ameren Corp.		Zero Coupon		1/15/2014			500				499,874
Energy 1.19%
Nisource Finance Corp.		Zero Coupon		1/13/2014			250				249,950
Nisource Finance Corp.		Zero Coupon		1/3/2014			500				499,991
Nisource Finance Corp.		Zero Coupon		1/2/2014			250				250,000
Nisource Finance Corp.		Zero Coupon		1/6/2014			1,250				1,249,903
Talisman Energy, Inc.		Zero Coupon		1/28/2014			750				749,594
Talisman Energy, Inc.		Zero Coupon		1/17/2014			500				499,850
Talisman Energy, Inc.		Zero Coupon		1/10/2014			750				749,880
Talisman Energy, Inc.		Zero Coupon		1/8/2014			500				499,940
Total											4,749,108
Energy: Exploration & Production 0.19%
Noble Corp.		Zero Coupon		1/9/2014			250				249,975
Noble Corp.		Zero Coupon		1/3/2014			500				499,993
Total											749,968

 

30

See Notes to Financial Statements.

Schedule of Investments (continued)

EMERGING MARKETS CURRENCY FUND December 31, 2013

 

Investments		Interest Rate		Maturity Date		Principal Amount (000)				Fair Value
Gas Distribution 0.19%
DCP Mistream LLC		Zero Coupon		1/17/2014		$	750			$	749,728
Total Commercial Paper (cost $6,748,547)											6,748,678
CONVERTIBLE BOND 0.32%
Metals/Mining (Excluding Steel)
Goldcorp, Inc. (Canada) (b) (cost $1,254,778)		2.00%		8/1/2014			1,250				1,256,250
CORPORATE BONDS 6.74%
Banking 1.26%
Banco Bradesco SA †		2.338%	#	5/16/2014			1,000				1,001,022
Morgan Stanley		4.75%		4/1/2014			4,000				4,032,048
Total											5,033,070
Electric: Integrated 0.50%
Exelon Generation Co. LLC		5.35%		1/15/2014			2,000				2,003,180
Electric: Power 0.74%
NiSource Finance Corp.		5.40%		7/15/2014			2,875				2,946,082
Electronics 0.50%
Avnet, Inc.		5.875%		3/15/2014			1,969				1,989,267
Food: Wholesale 0.07%
Tate & Lyle International Finance plc (United Kingdom) †(b)		5.00%		11/15/2014			250				258,722
Gas Distribution 0.75%
Buckeye Partners LP		5.30%		10/15/2014			2,161				2,234,003
Midcontinent Express Pipeline LLC †		5.45%		9/15/2014			750				765,973
Total											2,999,976
Media: Services 0.26%
Interpublic Group of Cos., Inc. (The)		6.25%		11/15/2014			1,000				1,043,750
Multi-Line Insurance 0.09%
Hartford Financial Services Group, Inc.		4.75%		3/1/2014			350				352,111
Property & Casualty Insurance 0.67%
Liberty Mutual Group, Inc. †		5.75%		3/15/2014			2,625				2,651,326

 

See Notes to Financial Statements.

31

Schedule of Investments (continued)

EMERGING MARKETS CURRENCY FUND December 31, 2013

 

Investments		Interest Rate		Maturity Date		Principal Amount (000)				Fair Value
Real Estate Investment Trusts 1.90%
Hospitality Properties Trust		7.875%		8/15/2014		$	2,675			$	2,696,794
Reckson Operating Partnership LP		5.875%		8/15/2014			1,000				1,027,622
UDR, Inc.		5.50%		4/1/2014			3,800				3,842,366
Total											7,566,782
Total Corporate Bonds (cost $26,853,076)											26,844,266
FOREIGN GOVERNMENT OBLIGATIONS (d) 5.18%
Nigeria 1.06%
Nigeria Treasury Bill (cost $4,221,206)		Zero Coupon		3/6/2014		NGN	684,300				4,208,558
Turkey 4.12%
Turkey Government Bond (cost $17,479,862)		Zero Coupon		4/9/2014		TRY	36,000				16,409,065
Total Foreign Government Obligations (cost $21,701,068)											20,617,623
Total Short-Term Investments (cost $56,557,469)											55,466,817
Total Investments in Securities 95.56% (cost $381,908,062)											380,417,526
Cash, Foreign Cash and Other Assets in Excess of Liabilities (e) 4.44%											17,683,896
Net Assets 100.00%										$	398,101,422

 

EUR		euro.
NGN		Nigerian naira.
TRY		Turkish lira.
†		Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and, unless registered under such Act or exempted from registration, may only be resold to qualified institutional buyers.
#		Variable rate security. The interest rate represents the rate in effect at December 31, 2013.
(a)		Security has been fully or partially segregated to cover margin requirements for open futures contracts and interest rate swaps as of December 31, 2013.
(b)		Foreign security traded in U.S. dollars.
(c)		Floating Rate Loans in which the Fund invests generally pay interest at rates which are periodically redetermined at a margin above the London Interbank Offered Rate (“LIBOR”) or the prime rate offered by major U.S. banks. The rate shown is the rate in effect at December 31, 2013.
(d)		Investment in non-U.S. dollar denominated securities.
(e)		Cash, Foreign Cash and Other Assets in Excess of Liabilities include net unrealized appreciation/depreciation on forward foreign currency exchange contracts, futures contracts and swaps as follows:

 

Open Forward Foreign Currency Exchange Contracts at December 31, 2013:

 

Forward Foreign Currency Exchange Contracts		Transaction Type		Counterparty		Expiration Date		Foreign Currency				U.S. $ Cost on Origination Date				U.S. $ Current Value				Unrealized Appreciation
Argentine peso		Buy		UBS AG		1/10/2014			23,420,000			$	3,512,824			$	3,536,011			$	23,187
Brazilian real		Buy		Credit Suisse		3/10/2014			16,870,000				6,978,283				7,036,780				58,497
Chilean peso		Buy		Goldman Sachs		3/10/2014			2,132,000,000				3,982,069				4,027,194				45,125
Chilean peso		Buy		J.P. Morgan		3/10/2014			5,210,000,000				9,660,671				9,841,315				180,644
Colombian peso		Buy		UBS AG		3/10/2014			41,500,000,000				21,194,015				21,427,516				233,501
euro		Buy		Goldman Sachs		1/17/2014			329,000				449,442				452,602				3,160

 

32	See Notes to Financial Statements.

Schedule of Investments (continued)

EMERGING MARKETS CURRENCY FUND December 31, 2013

 

Open Forward Foreign Currency Exchange Contracts at December 31, 2013: (continued)

 

Forward Foreign Currency Exchange Contracts		Transaction Type		Counterparty		Expiration Date		Foreign Currency				U.S. $ Cost on Origination Date				U.S. $ Current Value				Unrealized Appreciation
Hungarian forint		Buy		Barclays Bank plc		2/10/2014			1,633,000,000			$	7,404,798			$	7,541,058			$	136,260
Hungarian forint		Buy		J.P. Morgan		4/10/2014			1,060,000,000				4,861,268				4,879,537				18,269
Hungarian forint		Buy		Morgan Stanley		1/10/2014			2,970,000,000				13,486,832				13,739,439				252,607
Hungarian forint		Buy		UBS AG		3/10/2014			998,000,000				4,496,678				4,601,615				104,937
Hungarian forint		Buy		UBS AG		2/10/2014			697,400,000				3,137,000				3,220,535				83,535
Indian rupee		Buy		Barclays Bank plc		1/10/2014			22,350,000				353,081				360,835				7,754
Indian rupee		Buy		Barclays Bank plc		1/10/2014			19,700,000				314,893				318,051				3,158
Indian rupee		Buy		Credit Suisse		1/10/2014			69,630,000				1,094,295				1,124,158				29,863
Indian rupee		Buy		J.P. Morgan		2/10/2014			1,026,000,000				16,114,340				16,465,725				351,385
Indian rupee		Buy		J.P. Morgan		3/10/2014			637,100,000				9,982,764				10,167,388				184,624
Mexican peso		Buy		Barclays Bank plc		1/10/2014			4,075,000				309,074				311,928				2,854
Mexican peso		Buy		Barclays Bank plc		3/10/2014			2,625,000				199,603				199,979				376
Mexican peso		Buy		J.P. Morgan		1/10/2014			82,000,000				6,184,121				6,276,842				92,721
Mexican peso		Buy		J.P. Morgan		2/10/2014			132,000,000				9,974,927				10,078,841				103,914
Philippine peso		Buy		Barclays Bank plc		3/10/2014			10,600,000				239,224				240,185				961
Polish zloty		Buy		Goldman Sachs		1/10/2014			49,300,000				15,747,363				16,311,612				564,249
Polish zloty		Buy		J.P. Morgan		1/10/2014			37,850,000				12,435,363				12,523,215				87,852
Polish zloty		Buy		J.P. Morgan		2/10/2014			23,000,000				7,408,932				7,595,077				186,145
Russian ruble		Buy		Barclays Bank plc		3/7/2014			814,800,000				24,285,054				24,559,576				274,522
Singapore dollar		Buy		J.P. Morgan		3/10/2014			255,000				201,254				202,074				820
South Korean won		Buy		Barclays Bank plc		1/10/2014			14,200,000,000				13,246,269				13,462,021				215,752
South Korean won		Buy		Barclays Bank plc		2/10/2014			235,000,000				219,349				223,171				3,822
South Korean won		Buy		J.P. Morgan		2/10/2014			16,585,000,000				15,517,403				15,750,144				232,741
South Korean won		Buy		Morgan Stanley		3/10/2014			6,825,000,000				6,397,038				6,476,224				79,186
South Korean won		Buy		UBS AG		1/10/2014			335,000,000				313,731				317,590				3,859
Taiwan dollar		Buy		Barclays Bank plc		1/10/2014			9,500,000				317,460				318,683				1,223
Turkish lira		Buy		Barclays Bank plc		3/10/2014			1,040,000				476,143				477,140				997
Brazilian real		Sell		Credit Suisse		1/10/2014			3,475,000				1,470,507				1,470,315				192
euro		Sell		Goldman Sachs		3/20/2014			1,025,000				1,410,243				1,410,061				182
Indonesian rupiah		Sell		J.P. Morgan		1/10/2014			51,200,000,000				4,436,742				4,198,498				238,244
Japanese yen		Sell		Goldman Sachs		2/10/2014			217,000,000				2,199,819				2,060,917				138,902
Malaysian ringgit		Sell		Barclays Bank plc		2/10/2014			1,070,000				331,536				325,961				5,575
Mexican peso		Sell		J.P. Morgan		1/10/2014			23,200,000				1,781,311				1,775,887				5,424
Philippine peso		Sell		J.P. Morgan		1/10/2014			7,365,000				166,542				166,129				413
Singapore dollar		Sell		Goldman Sachs		3/10/2014			10,435,000				8,309,464				8,269,175				40,289
South African rand		Sell		Goldman Sachs		1/10/2014			14,100,000				1,353,689				1,342,793				10,896
Taiwan dollar		Sell		Barclays Bank plc		3/10/2014			55,230,000				1,876,656				1,853,762				22,894

 

See Notes to Financial Statements.

33

Schedule of Investments (continued)

EMERGING MARKETS CURRENCY FUND December 31, 2013

 

Open Forward Foreign Currency Exchange Contracts at December 31, 2013: (continued)

 

Forward Foreign Currency Exchange Contracts		Transaction Type		Counterparty		Expiration Date		Foreign Currency				U.S. $ Cost on Origination Date				U.S. $ Current Value			Unrealized Appreciation
Taiwan dollar		Sell		J.P. Morgan		1/10/2014			189,500,000			$	6,437,914			$	6,356,888			$	81,026
Thai baht		Sell		UBS AG		1/10/2014			5,365,000				166,460				163,213				3,247
Thai baht		Sell		UBS AG		1/10/2014			39,800,000				1,220,485				1,210,791				9,694
Turkish lira		Sell		Barclays Bank plc		2/10/2014			8,745,000				4,243,730				4,036,884				206,846
Turkish lira		Sell		Barclays Bank plc		1/10/2014			1,484,000				718,596				689,436				29,160
Turkish lira		Sell		Goldman Sachs		1/10/2014			600,000				288,782				278,748				10,034
Turkish lira		Sell		J.P. Morgan		1/10/2014			433,000				207,774				201,163				6,611
Turkish lira		Sell		J.P. Morgan		2/10/2014			1,965,000				936,788				907,087				29,701
Turkish lira		Sell		UBS AG		1/10/2014			341,000				167,132				158,422				8,710
Unrealized Appreciation on Forward Foreign Currency Exchange Contracts																				$	4,416,540

 

Forward Foreign Currency Exchange Contracts		Transaction Type		Counterparty		Expiration Date		Foreign Currency				U.S. $ Cost on Origination Date				U.S. $ Current Value				Unrealized Depreciation
Argentine peso		Buy		J.P. Morgan		2/10/2014			44,535,000			$	6,532,932			$	6,304,874			$	(228,058	)
Argentine peso		Buy		J.P. Morgan		3/10/2014			133,600,000				18,552,979				18,114,450				(438,529	)
Brazilian real		Buy		Barclays Bank plc		2/10/2014			520,000				220,545				218,331				(2,214	)
Brazilian real		Buy		Goldman Sachs		1/10/2014			21,750,000				9,508,197				9,202,693				(305,504	)
Brazilian real		Buy		Goldman Sachs		1/10/2014			500,000				223,268				211,556				(11,712	)
Brazilian real		Buy		J.P. Morgan		2/10/2014			25,915,000				11,288,496				10,880,845				(407,651	)
Brazilian real		Buy		Morgan Stanley		2/10/2014			495,000				208,526				207,834				(692	)
Chilean peso		Buy		J.P. Morgan		1/10/2014			623,500,000				1,225,384				1,185,647				(39,737	)
Chilean peso		Buy		J.P. Morgan		2/10/2014			4,200,000,000				8,094,825				7,958,408				(136,417	)
Chilean peso		Buy		UBS AG		2/10/2014			2,200,000,000				4,184,498				4,168,690				(15,808	)
Chilean peso		Buy		UBS AG		2/10/2014			4,400,000,000				8,365,019				8,337,380				(27,639	)
Colombian peso		Buy		J.P. Morgan		3/10/2014			460,000,000				238,018				237,510				(508	)
Colombian peso		Buy		UBS AG		2/10/2014			3,478,000,000				1,815,619				1,799,796				(15,823	)
Colombian peso		Buy		UBS AG		2/10/2014			727,000,000				377,662				376,208				(1,454	)
Indonesian rupiah		Buy		Barclays Bank plc		1/10/2014			105,000,000,000				8,986,648				8,610,200				(376,448	)
Indonesian rupiah		Buy		Barclays Bank plc		1/10/2014			5,900,000,000				537,111				483,811				(53,300	)
Indonesian rupiah		Buy		Goldman Sachs		2/10/2014			181,250,000,000				15,818,642				14,728,288				(1,090,354	)
Indonesian rupiah		Buy		Morgan Stanley		3/10/2014			8,000,000,000				656,922				644,826				(12,096	)
Japanese yen		Buy		Goldman Sachs		2/10/2014			12,400,000				124,452				117,767				(6,685	)
Malaysian ringgit		Buy		Barclays Bank plc		2/10/2014			21,000,000				6,587,615				6,397,368				(190,247	)
Mexican peso		Buy		Barclays Bank plc		1/10/2014			58,000,000				4,468,391				4,439,718				(28,673	)
Mexican peso		Buy		Barclays Bank plc		1/10/2014			4,065,000				313,330				311,163				(2,167	)

 

34	See Notes to Financial Statements.

Schedule of Investments (continued)

EMERGING MARKETS CURRENCY FUND December 31, 2013

 

Open Forward Foreign Currency Exchange Contracts at December 31, 2013: (continued)

 

Forward Foreign Currency Exchange Contracts		Transaction Type		Counterparty		Expiration Date		Foreign Currency				U.S. $ Cost on Origination Date				U.S. $ Current Value				Unrealized Depreciation
Mexican peso		Buy		Barclays Bank plc		3/10/2014			5,200,000			$	396,571			$	396,148			$	(423	)
Mexican peso		Buy		J.P. Morgan		3/10/2014			169,900,000				12,944,634				12,943,380				(1,254	)
Mexican peso		Buy		Morgan Stanley		2/10/2014			3,810,000				293,704				290,912				(2,792	)
Peruvian Nuevo sol		Buy		UBS AG		2/10/2014			11,600,000				4,134,735				4,121,404				(13,331	)
Philippine peso		Buy		Barclays Bank plc		2/10/2014			521,000,000				12,095,183				11,794,669				(300,514	)
Philippine peso		Buy		Barclays Bank plc		3/10/2014			275,000,000				6,291,466				6,231,212				(60,254	)
Philippine peso		Buy		J.P. Morgan		1/10/2014			173,000,000				3,990,773				3,902,274				(88,499	)
Polish zloty		Buy		Deutsche Bank		2/10/2014			720,000				239,064				237,759				(1,305	)
Russian ruble		Buy		Barclays Bank plc		2/10/2014			126,300,000				3,826,113				3,817,720				(8,393	)
Russian ruble		Buy		J.P. Morgan		3/7/2014			6,615,000				199,632				199,388				(244	)
Russian ruble		Buy		J.P. Morgan		3/7/2014			7,875,000				238,370				237,367				(1,003	)
South African rand		Buy		Deutsche Bank		2/10/2014			43,550,000				4,178,046				4,128,980				(49,066	)
South African rand		Buy		Deutsche Bank		3/10/2014			154,200,000				14,577,616				14,559,243				(18,373	)
South African rand		Buy		Deutsche Bank		1/10/2014			3,135,000				314,327				298,557				(15,770	)
South African rand		Buy		Deutsche Bank		2/10/2014			41,300,000				4,014,072				3,915,657				(98,415	)
South African rand		Buy		Deutsche Bank		2/10/2014			3,425,000				335,256				324,725				(10,531	)
South African rand		Buy		Goldman Sachs		3/10/2014			3,365,000				318,375				317,716				(659	)
South African rand		Buy		J.P. Morgan		1/10/2014			35,700,000				3,488,111				3,399,838				(88,273	)
South African rand		Buy		UBS AG		2/10/2014			4,280,000				416,473				405,787				(10,686	)
South Korean won		Buy		J.P. Morgan		3/10/2014			210,000,000				199,534				199,268				(266	)
Thai baht		Buy		Barclays Bank plc		3/10/2014			275,000,000				8,443,353				8,343,336				(100,017	)
Thai baht		Buy		J.P. Morgan		2/10/2014			75,000,000				2,387,015				2,278,294				(108,721	)
Thai baht		Buy		J.P. Morgan		3/10/2014			373,000,000				11,434,703				11,316,598				(118,105	)
Thai baht		Buy		UBS AG		1/10/2014			158,800,000				5,064,260				4,830,997				(233,263	)
Turkish lira		Buy		Barclays Bank plc		1/10/2014			2,408,000				1,176,545				1,118,707				(57,838	)
Turkish lira		Buy		Deutsche Bank		2/10/2014			430,000				209,793				198,497				(11,296	)
Turkish lira		Buy		Goldman Sachs		1/10/2014			450,000				224,655				209,061				(15,594	)
Turkish lira		Buy		J.P. Morgan		2/10/2014			11,395,000				5,470,066				5,260,182				(209,884	)
Turkish lira		Buy		J.P. Morgan		3/10/2014			17,200,000				8,258,193				7,891,161				(367,032	)
Argentine peso		Sell		J.P. Morgan		1/10/2014			6,575,000				982,810				992,710				(9,900	)
Chilean peso		Sell		J.P. Morgan		1/10/2014			623,500,000				1,171,552				1,185,647				(14,095	)
Chilean peso		Sell		J.P. Morgan		2/10/2014			210,000,000				393,111				397,920				(4,809	)
Colombian peso		Sell		UBS AG		2/10/2014			2,320,000,000				1,192,189				1,200,554				(8,365	)
euro		Sell		Goldman Sachs		1/17/2014			329,000				443,745				452,602				(8,857	)
euro		Sell		J.P. Morgan		2/10/2014			1,555,000				2,101,850				2,139,178				(37,328	)
euro		Sell		J.P. Morgan		3/10/2014			4,460,000				6,082,713				6,135,485				(52,772	)
Hungarian forint		Sell		J.P. Morgan		1/10/2014			261,000,000				1,191,203				1,207,405				(16,202	)

 

See Notes to Financial Statements.

35

Schedule of Investments (continued)

EMERGING MARKETS CURRENCY FUND December 31, 2013

 

Open Forward Foreign Currency Exchange Contracts at December 31, 2013: (concluded)

 

Forward Foreign Currency Exchange Contracts		Transaction Type		Counterparty		Expiration Date		Foreign Currency				U.S. $ Cost on Origination Date				U.S. $ Current Value			Unrealized Depreciation
Indian rupee		Sell		Barclays Bank plc		1/10/2014			89,700,000			$	1,430,211			$	1,448,183			$	(17,972	)
Indonesian rupiah		Sell		J.P. Morgan		1/10/2014			13,550,000,000				1,109,383				1,111,126				(1,743	)
Peruvian Nuevo sol		Sell		UBS AG		2/10/2014			11,600,000				4,106,195				4,121,404				(15,209	)
Philippine peso		Sell		Barclays Bank plc		1/10/2014			47,800,000				1,073,241				1,078,201				(4,960	)
Polish zloty		Sell		Credit Suisse		1/10/2014			4,610,000				1,512,014				1,525,285				(13,271	)
Polish zloty		Sell		J.P. Morgan		1/10/2014			1,300,000				413,172				430,124				(16,952	)
Polish zloty		Sell		J.P. Morgan		1/10/2014			885,000				290,602				292,815				(2,213	)
Polish zloty		Sell		J.P. Morgan		1/10/2014			15,335,000				5,048,352				5,073,805				(25,453	)
Russian ruble		Sell		J.P. Morgan		2/10/2014			45,000,000				1,352,544				1,360,233				(7,689	)
South Korean won		Sell		Barclays Bank plc		1/10/2014			1,850,000,000				1,740,718				1,753,855				(13,137	)
Unrealized Depreciation on Forward Foreign Currency Exchange Contracts																				$	(5,654,444	)

 

Open Futures Contracts at December 31, 2013:

 

Type		Expiration		Contracts		Position		Fair Value				Unrealized Appreciation
U.S. 2-Year Treasury Note		March 2014		310		Short		$	(68,141,875	)		$	112,370
U.S. 5-Year Treasury Note		March 2014		465		Short			(55,480,313	)			690,881
U.S. 10-Year Treasury Note		March 2014		24		Short			(2,953,125	)			53,960
Totals								$	(126,575,313	)		$	857,211

 

Credit Default Swaps on Indexes - Sell Protection at December 31, 2013 ⁽¹⁾ :

 

Referenced Index		Fund Receives		Termination Date		Original Notional Amount				Current Notional Amount				Fair Value (2)			Payments Upfront (3)					Unrealized Appreciation (4)
Markit CMBX. NA.AAA.2 (5)		.07%		3/15/2049		$	500,000			$	486,936			$	495,200			$	12,161			$	7,361
Markit CMBX. NA.AAA.3 (5)		.08%		12/13/2049			1,000,000				995,028				983,600				35,287				18,887
Markit CMBX. NA.AAA.2 (6)		.07%		3/15/2049			500,000				486,936				495,200				13,980				9,180
Markit CMBX. NA.AAA.2 (7)		.07%		3/15/2049			1,300,000				1,266,033				1,287,520				69,852				57,372
																		$	131,280			$	92,800

 

(1)	If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities.
(2)	Fair value serves as the indicator of the current status of payment/performance risk.
(3)	Upfront payments received are presented net of amortization (See Note 2(n)).

 

36	See Notes to Financial Statements.

Schedule of Investments (concluded)

EMERGING MARKETS CURRENCY FUND December 31, 2013

 

(4)	Total unrealized appreciation on Credit Default Swaps on Indexes amounted to $92,800. Total unrealized depreciation on Credit Default Swaps on Indexes amounted to $0.
(5)	Swap Counterparty: Credit Suisse.
(6)	Swap Counterparty: Morgan Stanley.
(7)	Swap Counterparty: UBS AG.

 

Open Interest Rate Swap Contract at December 31, 2013:

 

Periodic Payments to be Made By The Fund		Periodic Payments to be Received By The Fund		Termination Date		Notional Amount				Fair Value				Unrealized Depreciation
0.535%		3-Month LIBOR Index		8/23/2015		$	23,000,000			$	22,950,226			$	(49,774	)

 

The following is a summary of the inputs used as of December 31, 2013 in valuing the Fund’s investments carried at fair value ⁽¹⁾ :

 

Investment Type (2)(3)		Level 1				Level 2				Level 3				Total
Asset-Backed Securities		$	—			$	55,342,767			$	—			$	55,342,767
Corporate Bonds			—				153,704,571				—				153,704,571
Floating Rate Loans							5,549,796								5,549,796
Foreign Bond			—				1,782,305				—				1,782,305
Foreign Government Obligation			—				20,895,748				—				20,895,748
Government Sponsored Enterprises Bond			—				607,737				—				607,737
Government Sponsored Enterprises Collateralized Mortgage Obligations			—				9,534,037				—				9,534,037
Government Sponsored Enterprises Pass-throughs			—				44,881,526				—				44,881,526
Non-Agency Commercial Mortgage-Backed Securities			—				80,114,111				—				80,114,111
Commercial Paper			—				6,748,678				—				6,748,678
Convertible Bonds			—				1,256,250				—				1,256,250
Total		$	—			$	380,417,526			$	—			$	380,417,526
Other Financial Instruments
Forward Foreign Currency Exchange Contracts
Assets		$	—			$	4,416,540			$	—			$	4,416,540
Liabilities			—				(5,654,444	)			—				(5,654,444	)
Futures Contracts
Assets			857,211				—				—				857,211
Liabilities			—				—				—				—
Credit Default Swaps
Assets			—				92,800				—				92,800
Liabilities			—				—				—				—
Interest Rate Swaps
Assets			—				—				—				—
Liabilities			—				(49,774	)			—				(49,774	)
Total		$	857,211			$	(1,194,878	)		$	—			$	(337,667	)

 

(1)	Refer to note 2(p) 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 transfers during the fiscal year ended December 31, 2013.

 

See Notes to Financial Statements.

37

Schedule of Investments

EMERGING MARKETS LOCAL BOND FUND December 31, 2013

 

Investments

Interest Rate

Maturity Date

Principal Amount (000)

Fair Value

LONG-TERM INVESTMENTS 89.00%

FOREIGN CORPORATE BONDS (a) 15.08%

Brazil: 1.68%

Banks: Diversified

Banco do Brasil SA

9.75%

7/18/2017

BRL

155

$

63,235

Itau Unibanco Holding SA †

10.50%

11/23/2015

BRL

160

67,140

Total

130,375

Luxembourg 3.23%

Banks: Diversified

Russian Agricultural Bank OJSC Via RSHB Capital SA †

8.625%

2/17/2017

RUB

3,300

99,459

Sberbank of Russia Via SB Capital SA

7.00%

1/31/2016

RUB

5,000

151,728

Total

251,187

Mexico 5.48%

Media 1.31%

Grupo Televisa SAB

8.49%

5/11/2037

MXN

1,400

101,510

Oil: Integrated International 2.79%

Petroleos Mexicanos †

7.65%

11/24/2021

MXN

2,750

217,156

Telecommunications 1.38%

America Movil SAB de CV

9.00%

1/15/2016

MXN

1,300

107,624

Total

426,290

South Africa 3.12%

Electric: Power 1.94%

Eskom Holdings SOC Ltd.

Zero Coupon

12/31/2018

ZAR

800

48,598

Eskom Holdings SOC Ltd.

9.25%

4/20/2018

ZAR

1,000

102,251

Total

150,849

Transportation: Miscellaneous 1.18%

Transnet SOC Ltd.

8.90%

11/14/2027

ZAR

1,000

91,908

Total

242,757

Turkey 1.57%

Banks: Diversified

Akbank TAS †

7.50%

2/5/2018

TRY

305

122,007

Total Foreign Corporate Bonds (cost $1,231,597)

1,172,616

 

38	See Notes to Financial Statements.

Schedule of Investments (continued)

EMERGING MARKETS LOCAL BOND FUND December 31, 2013

 

Investments		Interest Rate		Maturity Date		Principal Amount (000)				Fair Value
FOREIGN GOVERNMENT OBLIGATIONS (a) 73.92%
Brazil 7.40%
Brazil Letras do Tesouro Nacional		Zero Coupon		1/1/2016		BRL	905			$	307,178
Brazil Notas do Tesouro Nacional Series F		10.00%		1/1/2017		BRL	250				100,436
Brazil Notas do Tesouro Nacional Series F		10.00%		1/1/2021		BRL	230				84,983
Brazil Notas do Tesouro Nacional Series F		10.00%		1/1/2023		BRL	230				82,582
Total											575,179
Chile 1.37%
Bonos del Banco Central de Chile en Pesos		6.00%		1/1/2015		CLP	55,000				106,253
Colombia 5.70%
Colombian TES Series B		7.00%		5/4/2022		COP	135,000				70,997
Colombian TES Series B		11.00%		7/24/2020		COP	295,000				187,486
Republic of Colombia		12.00%		10/22/2015		COP	316,000				185,138
Total											443,621
Hungary 4.37%
Hungary Government Bond		6.00%		11/24/2023		HUF	11,000				52,362
Hungary Government Bond		6.75%		11/24/2017		HUF	25,730				129,199
Hungary Government Bond		7.50%		11/12/2020		HUF	11,200				58,441
Hungary Government Bond		7.75%		8/24/2015		HUF	20,220				100,148
Total											340,150
Indonesia 4.77%
Indonesia Treasury Bond		7.00%		5/15/2022		IDR	1,552,000				116,582
Indonesia Treasury Bond		9.50%		7/15/2031		IDR	1,510,000				129,659
Indonesia Treasury Bond		10.00%		2/15/2028		IDR	1,410,000				125,031
Total											371,272
Malaysia 7.22%
Malaysia Government Bond		3.48%		3/15/2023		MYR	370				107,567
Malaysia Government Bond		3.835%		8/12/2015		MYR	505				155,461
Malaysia Government Bond		4.012%		9/15/2017		MYR	312				96,456
Malaysia Government Bond		4.378%		11/29/2019		MYR	650				202,439
Total											561,923
Mexico 4.23%
Mexican Bonos		5.00%		6/15/2017		MXN	1,000				77,285
Mexican Bonos		7.75%		11/13/2042		MXN	200				15,674
Mexican Bonos		7.75%		5/29/2031		MXN	600				48,201

 

See Notes to Financial Statements.

39

Schedule of Investments (continued)

EMERGING MARKETS LOCAL BOND FUND December 31, 2013

 

Investments		Interest Rate		Maturity Date		Principal Amount (000)				Fair Value
Mexico (continued)
Mexican Bonos		8.00%		12/7/2023		MXN	1,200			$	102,409
Mexican Bonos		8.50%		11/18/2038		MXN	570				48,439
Mexican Bonos		8.50%		5/31/2029		MXN	420				36,618
Total											328,626
Peru 0.59%
Peru Government Bond		6.85%		2/12/2042		PEN	132				45,792
Philippines 1.54%
Republic of Philippines		4.95%		1/15/2021		PHP	5,000				119,698
Poland 11.72%
Poland Government Bond		3.75%		4/25/2018		PLN	810				270,473
Poland Government Bond		5.00%		4/25/2016		PLN	380				131,381
Poland Government Bond		5.25%		10/25/2020		PLN	155				55,103
Poland Government Bond		5.50%		4/25/2015		PLN	875				299,950
Poland Government Bond		5.75%		9/23/2022		PLN	423				154,692
Total											911,599
Romania 0.83%
Romania Government Bond		5.85%		4/26/2023		RON	200				64,381
Russia 7.29%
Russian Federal Bond - OFZ		7.50%		3/15/2018		RUB	6,220				194,102
Russian Federal Bond - OFZ		7.60%		4/14/2021		RUB	5,300				163,636
Russian Federal Bond - OFZ		8.15%		2/3/2027		RUB	6,640				208,945
Total											566,683
South Africa 5.84%
Republic of South Africa		6.25%		3/31/2036		ZAR	865				60,713
Republic of South Africa		7.00%		2/28/2031		ZAR	920				73,260
Republic of South Africa		7.25%		1/15/2020		ZAR	1,490				140,674
Republic of South Africa		10.50%		12/21/2026		ZAR	825				92,813
Republic of South Africa		13.50%		9/15/2015		ZAR	815				86,793
Total											454,253
Thailand 6.81%
Bank of Thailand		3.05%		7/23/2016		THB	5,900				180,763
Thailand Government Bond		3.58%		12/17/2027		THB	1,720				49,458
Thailand Government Bond		3.625%		6/16/2023		THB	2,890				86,251
Thailand Government Bond		3.65%		12/17/2021		THB	3,125				94,572

 

40	See Notes to Financial Statements.

Schedule of Investments (continued)

EMERGING MARKETS LOCAL BOND FUND December 31, 2013

 

Investments

Interest Rate

Maturity Date

Principal Amount (000)

Fair Value

Thailand (continued)

Thailand Government Bond

3.875%

6/13/2019

THB

3,810

$

118,767

Total

529,811

Turkey 4.24%

Turkey Government Bond

7.10%

3/8/2023

TRY

265

101,290

Turkey Government Bond

9.00%

1/27/2016

TRY

370

169,487

Turkey Government Bond

10.50%

1/15/2020

TRY

124

59,115

Total

329,892

Total Foreign Government Obligations (cost $5,918,460)

5,749,133

Total Long-Term Investments (cost $7,150,057)

6,921,749

SHORT-TERM INVESTMENTS 5.68%

FOREIGN CORPORATE BOND (a) 2.87%

Malaysia

Banks: Diversified

Bank Negara Malaysia Monetary Notes (cost $228,268)

Zero Coupon

1/9/2014

MYR

731

223,043

FOREIGN GOVERNMENT OBLIGATION (a) 2.81%

Nigeria

Nigeria Treasury Bill (cost $213,753)

Zero Coupon

5/22/2014

NGN

36,550

218,277

Total Short-Term Investments (cost $442,021)

441,320

Total Investments in Securities 94.68% (cost $7,592,078)

7,363,069

Cash, Foreign Cash and Other Assets in Excess of Liabilities (b) 5.32%

414,127

Net Assets 100.00%

$

7,777,196

 

See Notes to Financial Statements.

41

Schedule of Investments (continued)

EMERGING MARKETS LOCAL BOND FUND December 31, 2013

 

BRL		Brazilian real.
CLP		Chilean peso.
COP		Colombian peso.
HUF		Hungarian forint.
IDR		Indonesian rupiah.
MXN		Mexican peso.
MYR		Malaysian ringgit.
NGN		Nigerian naira.
PEN		Peruvian nuevo sol.
PHP		Philippine peso.
PLN		Polish zloty.
RON		Romanian new leu.
RUB		Russian ruble.
THB		Thai baht.
TRY		Turkish lira.
ZAR		South African rand.
†		Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and, unless registered under such Act or exempted from registration, may only be resold to qualified institutional buyers.
(a)		Investment in non-U.S. dollar denominated securities.
(b)		Cash, Foreign Cash and Other Assets in Excess of Liabilities include net unrealized appreciation/depreciation on forward foreign currency exchange contracts as follows:

 

Open Forward Foreign Currency Exchange Contracts at December 31, 2013:

 

Forward Foreign Currency Exchange Contracts		Transaction Type		Counterparty		Expiration Date		Foreign Currency				U.S. $ Cost on Origination Date				U.S. $ Current Value			Unrealized Appreciation
Brazilian real		Buy		Morgan Stanley		3/24/2014			40,000			$	16,490			$	16,629			$	139
Chilean peso		Buy		Goldman Sachs		3/20/2014			33,000,000				61,786				62,267				481
Hungarian forint		Buy		Deutsche Bank		2/19/2014			25,365,000				114,033				117,075				3,042
Hungarian forint		Buy		Morgan Stanley		2/19/2014			1,860,000				8,428				8,585				157
Hungarian forint		Buy		Morgan Stanley		2/19/2014			2,955,000				13,318				13,639				321
Mexican peso		Buy		Deutsche Bank		3/3/2014			660,000				50,010				50,308				298
Mexican peso		Buy		Morgan Stanley		3/3/2014			210,000				16,006				16,007				1
Peruvian nuevo sol		Buy		Goldman Sachs		2/19/2014			237,000				83,924				84,094				170
Polish zloty		Buy		Goldman Sachs		1/10/2014			378,000				122,517				125,067				2,550
Romanian new leu		Buy		Goldman Sachs		2/19/2014			330,000				99,672				101,337				1,665
Russian ruble		Buy		Morgan Stanley		2/3/2014			600,000				18,083				18,154				71
Thai baht		Buy		Morgan Stanley		3/13/2014			1,300,000				39,216				39,436				220
Brazilian real		Sell		Credit Suisse		1/10/2014			232,000				98,400				98,162				238
Indonesian rupiah		Sell		Deutsche Bank		1/9/2014			1,325,000,000				114,818				108,684				6,134
Russian ruble		Sell		Morgan Stanley		2/3/2014			2,320,000				71,175				70,195				980
Turkish lira		Sell		Deutsche Bank		2/18/2014			183,000				88,224				84,328				3,896
Unrealized Appreciation on Forward Foreign Currency Exchange Contracts																				$	20,363

 

42	See Notes to Financial Statements.

Schedule of Investments (concluded)

EMERGING MARKETS LOCAL BOND FUND December 31, 2013

 

Open Forward Foreign Currency Exchange Contracts at December 31, 2013:

 

Forward Foreign Currency Exchange Contracts		Transaction Type		Counterparty		Expiration Date		Foreign Currency				U.S. $ Cost on Origination Date				U.S. $ Current Value			Unrealized Depreciation
Brazilian real		Buy		Credit Suisse		1/10/2014			65,000			$	27,655			$	27,502			$	(153	)
Brazilian real		Buy		Goldman Sachs		1/10/2014			255,000				111,476				107,894				(3,582	)
Indonesian rupiah		Buy		Deutsche Bank		1/9/2014			2,180,000,000				187,688				178,816				(8,872	)
Malaysian ringgit		Buy		Morgan Stanley		1/10/2014			172,000				52,907				52,491				(416	)
Mexican peso		Buy		Morgan Stanley		3/3/2014			680,000				52,257				51,832				(425	)
South African rand		Buy		Deutsche Bank		2/21/2014			45,000				4,315				4,260				(55	)
South African rand		Buy		Deutsche Bank		2/21/2014			324,000				31,448				30,669				(779	)
South African rand		Buy		Goldman Sachs		2/21/2014			215,000				20,845				20,351				(494	)
Thai baht		Buy		Morgan Stanley		3/13/2014			1,425,000				44,022				43,228				(794	)
Turkish lira		Buy		Deutsche Bank		2/18/2014			19,000				9,290				8,755				(535	)
Turkish lira		Buy		Morgan Stanley		2/18/2014			701,000				339,509				323,029				(16,480	)
Colombian peso		Sell		Goldman Sachs		3/6/2014			264,000,000				135,412				136,341				(929	)
Colombian peso		Sell		Goldman Sachs		3/6/2014			118,000,000				60,204				60,940				(736	)
Colombian peso		Sell		Morgan Stanley		3/6/2014			140,000,000				71,368				72,302				(934	)
Philippine peso		Sell		Morgan Stanley		3/20/2014			7,920,000				178,218				179,473				(1,255	)
Polish zloty		Sell		Goldman Sachs		1/10/2014			360,000				114,991				119,111				(4,120	)
Polish zloty		Sell		Morgan Stanley		1/10/2014			240,000				76,438				79,407				(2,969	)
Romanian new leu		Sell		Goldman Sachs		2/19/2014			185,000				55,766				56,810				(1,044	)
Unrealized Depreciation on Forward Foreign Currency Exchange Contracts																				$	(44,572	)

 

 

The following is a summary of the inputs used as of December 31, 2013 in valuing the Fund’s investments carried at fair value ⁽¹⁾ :

 

Investment Type (2)(3)		Level 1				Level 2				Level 3				Total
Foreign Corporate Bonds		$	—			$	1,395,659			$	—			$	1,395,659
Foreign Government Obligations			—				5,967,410				—				5,967,410
Total		$	—			$	7,363,069			$	—			$	7,363,069
Other Financial Instruments
Forward Foreign Currency Exchange Contracts
Assets		$	—			$	20,363			$	—			$	20,363
Liabilities			—				(44,572	)			—				(44,572	)
Total		$	—			$	(24,209	)		$	—			$	(24,209	)

 

(1)	Refer to note 2(p) 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 transfers during the period ended December 31, 2013.

 

See Notes to Financial Statements.

43

Schedule of Investments

MULTI-ASSET GLOBAL OPPORTUNITY FUND (formerly, GLOBAL ALLOCATION FUND) December 31, 2013

 

Investments		Shares				Fair Value (000)
INVESTMENTS IN UNDERLYING FUNDS (a) 99.71%
Lord Abbett Affiliated Fund, Inc. – Class I (b)			270,769			$	4,229
Lord Abbett Equity Trust-Calibrated Large Cap Value Fund – Class I (c)			55,084				1,178
Lord Abbett Equity Trust-Calibrated Mid Cap Value Fund – Class I (c)			1,232,655				25,565
Lord Abbett Global Fund, Inc.-Emerging Markets Currency Fund – Class I (d)			6,035,185				37,660
Lord Abbett Investment Trust-High Yield Fund – Class I (e)			2,923,676				22,922
Lord Abbett Municipal Income Fund, Inc.-High Yield Municipal Bond Fund – Class I (f)			452,119				4,869
Lord Abbett Securities Trust-International Dividend Income Fund – Class I (g)			9,884,120				89,649
Lord Abbett Mid Cap Stock Fund, Inc. – Class I (h)			1,430,354				33,070
Lord Abbett Investment Trust-Short Duration Income Fund – Class I (i)			1,887,580				8,588
Total Investments in Underlying Funds (cost $206,989,373)							227,730
Cash and Other Assets in Excess of Liabilities 0.29%							671
Net Assets 100.00%						$	228,401

 

(a)	Affiliated issuers (See Note 12).
(b)	Fund investment objective is long-term growth of capital and income without excessive fluctuations in market value.
(c)	Fund investment objective is total return.
(d)	Fund investment objective is to seek high total return.
(e)	Fund investment objective is to seek a high current income and the opportunity for capital appreciation to produce a high total return.
(f)	Fund investment objective is to seek a high level of income exempt from federal income tax.
(g)	Fund investment objective is to seek a high level of total return.
(h)	Fund investment objective is to seek capital appreciation through investments, primarily in equity securities, which are believed to be undervalued in the marketplace.
(i)	Fund investment objective is to seek a high level of income consistent with preservation of capital.

 

 

The following is a summary of the inputs used as of December 31, 2013 in valuing the Fund’s investments carried at fair value ⁽¹⁾ :

 

Investment Type (2)(3)		Level 1 (000)				Level 2 (000)				Level 3 (000)				Total (000)
Investments in Underlying Funds		$	227,730			$	—			$	—			$	227,730

 

(1)	Refer to note 2(p) for a description of fair value measurements and the three-tier hierarchy of inputs.
(2)	See Schedule of Investments for fair values in each investment strategy of the Underlying Funds.
(3)	There were no level transfers during the fiscal year ended December 31, 2013.

 

44	See Notes to Financial Statements.

Statements of Assets and Liabilities

December 31, 2013

 

		Emerging Markets Corporate Debt Fund				Emerging Markets Currency Fund
ASSETS:
Investments in securities, at cost		$	10,828,434			$	381,908,062
Investments in securities, at fair value		$	10,808,682			$	380,417,526
Cash			2,389,953				16,587,511
Foreign cash, at value (cost $0 and $18,795, respectively)			—				18,349
Deposits with brokers for derivatives collateral			—				1,800,000
Receivables:
Interest and dividends			145,981				2,724,984
Investment securities sold			396,817				536,742
Capital shares sold			16,176				1,569,345
From advisor (See Note 3)			26,626				—
Variation margin for interest rate swaps			—				12,450
Variation margin for futures contracts			—				47,600
Unrealized appreciation on forward foreign currency exchange contracts			—				4,416,540
Unrealized appreciation on credit default swaps			—				92,800
Prepaid expenses			68,461				26,417
Total assets			13,852,696				408,250,264
LIABILITIES:
Payables:
Investment securities purchased			3,772,291				1,941,381
Capital shares reacquired			—				1,064,773
Management fee			4,410				174,253
12b-1 distribution fees			743				33,337
Directors’ fees			—				57,832
Fund administration			252				13,940
To affiliate (See Note 3)			—				27,733
Unrealized depreciation on forward foreign currency exchange contracts			—				5,654,444
Upfront payments received from credit default swaps, net of amortization			—				131,280
Distributions payable			15,144				895,615
Accrued expenses			27,250				154,254
Total liabilities			3,820,090				10,148,842
NET ASSETS		$	10,032,606			$	398,101,422
COMPOSITION OF NET ASSETS:
Paid-in capital		$	10,052,503			$	423,199,923
Undistributed (distributions in excess of) net investment income			527				(1,903,398	)
Accumulated net realized loss on investments, futures contracts, swaps and foreign currency related transactions			(672	)			(21,371,351	)
Net unrealized depreciation on investments, futures contracts and translation of assets and liabilities denominated in foreign currencies			(19,752	)			(1,823,752	)
Net Assets		$	10,032,606			$	398,101,422

 

See Notes to Financial Statements.

45

Statements of Assets and Liabilities (continued)

December 31, 2013

 

		Emerging Markets Corporate Debt Fund				Emerging Markets Currency Fund
Net assets by class:
Class A Shares		$	4,834,607			$	47,960,853
Class B Shares			—			$	695,553
Class C Shares		$	99,900			$	17,377,859
Class F Shares		$	99,957			$	36,180,948
Class I Shares		$	4,798,216			$	295,136,189
Class P Shares			—			$	7,875
Class R2 Shares		$	99,963			$	247,871
Class R3 Shares		$	99,963			$	494,274
Outstanding shares by class:
Class A Shares (350 and 415 million shares of common stock authorized, $.001 par value)			322,973				7,671,424
Class B Shares (0 and 30 million shares of common stock authorized, $.001 par value)			—				110,751
Class C Shares (85 and 100 million shares of common stock authorized, $.001 par value)			6,674				2,763,544
Class F Shares (85 and 100 million shares of common stock authorized, $.001 par value)			6,677				5,791,704
Class I Shares (85 and 100 million shares of common stock authorized, $.001 par value)			320,537				47,305,301
Class P Shares (0 and 20 million shares of common stock authorized, $.001 par value)			—				1,260
Class R2 Shares (15 and 20 million shares of common stock authorized, $.001 par value)			6,678				39,585
Class R3 Shares (15 and 20 million shares of common stock authorized, $.001 par value)			6,678				79,254
Net asset value, offering and redemption price per share
(Net assets divided by outstanding shares):
Class A Shares-Net asset value			$14.97				$6.25
Class A Shares-Maximum offering price
(Net asset value plus sales charge of 2.25%)			$15.31				$6.39
Class B Shares-Net asset value			—				$6.28
Class C Shares-Net asset value			$14.97				$6.29
Class F Shares-Net asset value			$14.97				$6.25
Class I Shares-Net asset value			$14.97				$6.24
Class P Shares-Net asset value			—				$6.25
Class R2 Shares-Net asset value			$14.97				$6.26
Class R3 Shares-Net asset value			$14.97				$6.24

 

46

See Notes to Financial Statements.

Statements of Assets and Liabilities (continued)

December 31, 2013

 

		Emerging Markets Local Bond Fund				Multi-Asset Global Opportunity Fund*
ASSETS:
Investments in securities, at cost		$	7,592,078			$	206,989,373
Investments in securities, at fair value		$	7,363,069			$	227,730,093
Cash			328,317				168,805
Foreign cash, at value (cost $20,532 and $0, respectively)			19,686				—
Receivables:
Interest and dividends			144,486				702,954
Investment securities sold			38,613				—
Capital shares sold			61,420				2,965,327
From advisor (See Note 3)			18,088				—
From affiliates (See Note 3)			—				45,543
Unrealized appreciation on forward foreign currency exchange contracts			20,363				—
Prepaid expenses			54,416				15,126
Total assets			8,048,458				231,627,848
LIABILITIES:
Payables:
Investment securities purchased			100,476				762,327
Capital shares reacquired			13,343				253,751
Management fee			4,621				13,208
Offering costs			4,264				—
12b-1 distribution fees			1,269				70,877
Directors’ fees			151				38,839
Fund administration			264				—
Unrealized depreciation on forward foreign currency exchange contracts			44,572				—
Distributions payable			36,533				1,982,380
Accrued expenses			65,769				105,810
Total liabilities			271,262				3,227,192
NET ASSETS		$	7,777,196			$	228,400,656
COMPOSITION OF NET ASSETS:
Paid-in capital		$	8,063,881			$	210,816,636
Distributions in excess of net investment income			(3,393	)			(38,839	)
Accumulated net realized loss on investments and foreign currency related transactions			(27,655	)			(3,117,786	)
Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities denominated in foreign currencies			(255,637	)			20,740,645
Net Assets		$	7,777,196			$	228,400,656

 

See Notes to Financial Statements.

47

Statements of Assets and Liabilities (concluded)

December 31, 2013

 

		Emerging Markets Local Bond Fund				Multi-Asset Global Opportunity Fund*
Net assets by class:
Class A Shares		$	4,950,489			$	139,986,322
Class B Shares		$	—			$	6,019,965
Class C Shares		$	225,685			$	35,962,950
Class F Shares		$	116,469			$	6,472,163
Class I Shares		$	2,286,297			$	34,085,814
Class R2 Shares		$	99,103			$	88,811
Class R3 Shares		$	99,153			$	5,784,631
Outstanding shares by class:
Class A Shares (350 million and 430 million shares of common stock authorized, $.001 par value)			344,086				11,209,529
Class B Shares (0 and 15 million shares of common stock authorized, $.001 par value)			—				525,130
Class C Shares (85 million and 20 million shares of common stock authorized, $.001 par value)			15,689				3,134,723
Class F Shares (85 million and 20 million shares of common stock authorized, $.001 par value)			8,098				518,181
Class I Shares (85 million and 15 million shares of common stock authorized, $.001 par value)			158,937				2,713,706
Class R2 Shares (15 million and 20 million shares of common stock authorized, $.001 par value)			6,890				6,984.666
Class R3 Shares (15 million and 20 million shares of common stock authorized, $.001 par value)			6,894				460,828
Net asset value, offering and redemption price per share (Net assets divided by outstanding shares):
Class A Shares-Net asset value			$14.39				$12.49
Class A Shares-Maximum offering price (Net asset value plus sales charge of 2.25%)			$14.72				$12.78
Class B Shares-Net asset value			—				$11.46
Class C Shares-Net asset value			$14.38				$11.47
Class F Shares-Net asset value			$14.38				$12.49
Class I Shares-Net asset value			$14.38				$12.56
Class R2 Shares-Net asset value			$14.38				$12.72
Class R3 Shares-Net asset value			$14.38				$12.55

*	Formerly, Global Allocation Fund.

 

48

See Notes to Financial Statements.

Statements of Operations

For the Year Ended December 31, 2013

 

		Emerging Markets Corporate Debt Fund*				Emerging Markets Currency Fund
Investment income:
Interest and other (net of foreign withholding taxes of $28 and $0, respectively)		$	18,180			$	8,604,553
Total investment income			18,180				8,604,553
Expenses:
Management fee			4,410				2,182,556
12b-1 distribution plan-Class A			605				131,744
12b-1 distribution plan-Class B			—				9,424
12b-1 distribution plan-Class C			63				203,630
12b-1 distribution plan-Class F			6				58,066
12b-1 distribution plan-Class P			—				44
12b-1 distribution plan-Class R2			—				1,490
12b-1 distribution plan-Class R3			—				2,385
Shareholder servicing			150				298,446
Professional			25,050				78,122
Reports to shareholders			500				69,548
Fund administration			252				174,604
Custody			150				101,552
Directors’ fees			—				18,067
Registration			1,300				84,910
Subsidy (See Note 3)			—				446,271
Other			100				19,716
Gross expenses			32,586				3,880,575
Expense reductions (See Note 9)			—				(173	)
Management fee waived and expenses reimbursed (See Note 3)			(26,557	)			—
Net expenses			6,029				3,880,402
Net investment income			12,151				4,724,151
Net realized and unrealized gain (loss):
Net realized gain (loss) on investments, futures contracts, swaps and foreign currency related transactions			2,174				(8,000,393	)
Net change in unrealized appreciation/depreciation on investments, futures contracts, swaps and translation of assets and liabilities denominated in foreign currencies			(19,752	)			(10,389,791	)
Net realized and unrealized loss			(17,578	)			(18,390,184	)
Net Decrease in Net Assets Resulting From Operations		$	(5,427	)		$	(13,666,033	)

*	For the period December 6, 2013 (commencement of operations) to December 31, 2013.

 

See Notes to Financial Statements.

49

Statements of Operations (concluded)

For the Year Ended December 31, 2013

 

		Emerging Markets Local Bond Fund*				Multi-Asset Global Opportunity Fund**
Investment income:
Dividends received from Underlying Funds		$	—			$	7,012,015
Interest and other (net of foreign withholding taxes of $4,679 and $0, respectively)			216,095				126
Total investment income			216,095				7,012,141
Expenses:
Management fee			26,000				499,337
12b-1 distribution plan-Class A			4,504				310,119
12b-1 distribution plan-Class B			—				65,073
12b-1 distribution plan-Class C			768				310,836
12b-1 distribution plan-Class F			56				3,851
12b-1 distribution plan-Class R2			315				633
12b-1 distribution plan-Class R3			263				25,696
Shareholder servicing			10,003				353,775
Professional			49,227				35,585
Reports to shareholders			12,000				40,923
Fund administration			1,486				—
Custody			21,361				9,665
Directors’ fees			183				13,599
Registration			47,249				77,420
Offering costs			11,932				—
Other			7,040				14,842
Gross expenses			192,387				1,761,354
Expense reductions (See Note 9)			(3	)			(186	)
Expenses assumed by Underlying Funds (See Note 3)			—				(545,623	)
Management fee waived and expenses reimbursed (See Note 3)			(155,856	)			(371,862	)
Net expenses			36,528				843,683
Net investment income			179,567				6,168,458
Net realized and unrealized gain (loss):
Capital gain distributions received from Underlying Funds			—				2,994,619
Net realized gain on investments (net of foreign capital gains tax of $1,008 and $0, respectively) and foreign currency related transactions			14,479				2,134,648	***
Net change in unrealized appreciation/depreciation on investments and translation of assets and liabilities denominated in foreign currencies			(255,637	)			15,703,811
Net realized and unrealized gain (loss)			(241,158	)			20,833,078
Increase (Decrease) in Net Assets Resulting From Operations		$	(61,591	)		$	27,001,536

*		For the period June 21, 2013 (commencement of operations) to December 31, 2013.
**		Formerly, Global Allocation Fund.
***		Includes net realized gain from affiliated issuers of $2,034,020 (See Note 12).

 

50

See Notes to Financial Statements.

Statements of Changes in Net Assets

 

		Emerging Markets Corporate Debt Fund
INCREASE IN NET ASSETS		For the Period Ended December 31, 2013*
Operations:
Net investment income		$	12,151
Net realized gain on investments			2,174
Net change in unrealized appreciation/depreciation on investments			(19,752	)
Net decrease in net assets resulting from operations			(5,427	)
Distributions to shareholders from:
Net investment income
Class A			(7,032	)
Class C			(102	)
Class F			(152	)
Class I			(7,544	)
Class R2			(157	)
Class R3			(157	)
Total distributions to shareholders			(15,144	)
Capital share transactions (See Note 14):
Net proceeds from sales of shares			10,037,000
Reinvestment of distributions			16,177
Net increase in net assets resulting from capital share transactions			10,053,177
Net increase in net assets			10,032,606
NET ASSETS:
Beginning of period		$	—
End of period		$	10,032,606
Undistributed net investment income		$	527

*	For the period December 6, 2013 (commencement of operations) to December 31, 2013.

 

See Notes to Financial Statements.

51

Statements of Changes in Net Assets (continued)

 

		Emerging Markets Currency Fund
INCREASE (DECREASE) IN NET ASSETS		For the Year Ended December 31, 2013				For the Year Ended December 31, 2012
Operations:
Net investment income		$	4,724,151			$	4,501,890
Net realized gain (loss) on investments, futures contracts, swaps and foreign currency related transactions			(8,000,393	)			11,874,941
Net change in unrealized appreciation/depreciation on investments, futures contracts and translation of assets and liabilities denominated in foreign currencies			(10,389,791	)			20,772,775
Net increase (decrease) in net assets resulting from operations			(13,666,033	)			37,149,606
Distributions to shareholders from:
Net investment income
Class A			(982,726	)			(1,843,700	)
Class B			(9,892	)			(23,310	)
Class C			(279,565	)			(573,748	)
Class F			(896,679	)			(1,749,818	)
Class I			(4,607,470	)			(5,593,517	)
Class P			(133	)			(203	)
Class R2			(3,132	)			(6,247	)
Class R3			(6,596	)			(10,022	)
Return of capital
Class A			(745,764	)			(282,877	)
Class B			(7,506	)			(3,577	)
Class C			(212,155	)			(88,029	)
Class F			(680,466	)			(268,473	)
Class I			(3,496,485	)			(858,207	)
Class P			(101	)			(31	)
Class R2			(2,377	)			(958	)
Class R3			(5,005	)			(1,538	)
Total distributions to shareholders			(11,936,052	)			(11,304,255	)
Capital share transactions (Net of share conversions) (See Note 14):
Net proceeds from sales of shares			177,016,961				216,733,975
Reinvestment of distributions			11,012,003				10,159,041
Cost of shares reacquired			(212,293,195	)			(119,792,291	)
Net increase (decrease) in net assets resulting from capital share transactions			(24,264,231	)			107,100,725
Net increase (decrease) in net assets			(49,866,316	)			132,946,076
NET ASSETS:
Beginning of year		$	447,967,738			$	315,021,662
End of year		$	398,101,422			$	447,967,738
Distributions in excess of net investment income		$	(1,903,398	)		$	(1,235,342	)

 

52

See Notes to Financial Statements.

Statements of Changes in Net Assets (continued)

 

		Emerging Markets Local Bond Fund
INCREASE IN NET ASSETS		For the Period Ended December 31, 2013*
Operations:
Net investment income		$	179,567
Net realized gain on investments and foreign currency related transactions			14,479
Net change in unrealized appreciation/depreciation on investments and translation of assets and liabilities denominated in foreign currencies			(255,637	)
Net decrease in net assets resulting from operations			(61,591	)
Distributions to shareholders from:
Net investment income
Class A			(140,478	)
Class C			(4,401	)
Class F			(3,577	)
Class I			(75,123	)
Class R2			(2,966	)
Class R3			(3,018	)
Total distributions to shareholders			(229,563	)
Capital share transactions (See Note 14):
Net proceeds from sales of shares			8,747,781
Reinvestment of distributions			254,775
Cost of shares reacquired			(934,206	)
Net increase in net assets resulting from capital share transactions			8,068,350
Net increase in net assets			7,777,196
NET ASSETS:
Beginning of period		$	—
End of period		$	7,777,196
Distributions in excess of net investment income		$	(3,393	)

*	For the period June 21, 2013 (commencement of operations) to December 31, 2013.

 

See Notes to Financial Statements.

53

Statements of Changes in Net Assets (concluded)

 

		Multi-Asset Global Opportunity Fund*
INCREASE IN NET ASSETS		For the Year Ended December 31, 2013				For the Year Ended December 31, 2012
Operations:
Net investment income		$	6,168,458			$	5,454,401
Capital gains distributions received from Underlying Funds			2,994,619				689,757
Net realized gain on investments			2,134,648				686,556
Net change in unrealized appreciation/depreciation on investments			15,703,811				16,781,922
Net increase in net assets resulting from operations			27,001,536				23,612,636
Distributions to shareholders from:
Net investment income
Class A			(5,241,605	)			(3,899,618	)
Class B			(225,706	)			(226,021	)
Class C			(1,223,675	)			(890,794	)
Class F			(202,158	)			(92,639	)
Class I			(1,260,162	)			(664,970	)
Class R2			(3,446	)			(3,183	)
Class R3			(213,687	)			(150,568	)
Net realized gain
Class A			(879,308	)			—
Class B			(42,177	)			—
Class C			(246,618	)			—
Class F			(40,896	)			—
Class I			(216,061	)			—
Class R2			(554	)			—
Class R3			(36,602	)			—
Return of capital
Class A			—				(65,497	)
Class B			—				(3,796	)
Class C			—				(14,961	)
Class F			—				(1,556	)
Class I			—				(11,168	)
Class R2			—				(53	)
Class R3			—				(2,529	)
Total distributions to shareholders			(9,832,655	)			(6,027,353	)
Capital share transactions (Net of share conversions) (See Note 14):
Net proceeds from sales of shares			63,790,915				34,627,973
Reinvestment of distributions			9,222,247				5,682,158
Cost of shares reacquired			(39,479,184	)			(43,626,970	)
Net increase (decrease) in net assets resulting from capital share transactions			33,533,978				(3,316,839	)
Net increase in net assets			50,702,859				14,268,444
NET ASSETS:
Beginning of year		$	177,697,797			$	163,429,353
End of year		$	228,400,656			$	177,697,797
Distributions in excess of net investment income		$	(38,839	)		$	(30,576	)

*	Formerly, Global Allocation Fund.

 

54

See Notes to Financial Statements.

Financial Highlights

EMERGING MARKETS CORPORATE DEBT FUND

 

		Class A Shares
		12/6/2013
		to
		12/31/2013 (a)
Per Share Operating Performance
Net asset value, beginning of period			$15.00
Investment operations:
Net investment income (b)			.02
Net realized and unrealized loss			(.02	)
Total from investment operations			—
Distributions to shareholders from:
Net investment income			(.03	)
Net asset value, end of period			$14.97
Total Return (c)			(.04	)% (d)
Ratios to Average Net Assets:
Expenses, excluding expense reductions and including management fee waived and expenses reimbursed			1.05	% (e)
Expenses, including expense reductions, management fee waived and expenses reimbursed			1.05	% (e)
Expenses, excluding expense reductions, management fee waived and expenses reimbursed			5.26	% (e)
Net investment income			1.84	% (e)
Supplemental Data:
Net assets, end of period (000)			$4,835
Portfolio turnover rate			4.14	% (d)

(a)	Commencement of investment operations was 12/6/2013, SEC effective date was 10/28/2013 and date shares first became available to the public was 1/2/2014.
(b)	Calculated using average shares outstanding during the period.
(c)	Total return does not consider the effects of sales loads and assumes the reinvestment of all distributions.
(d)	Not annualized.
(e)	Annualized.

 

See Notes to Financial Statements.

55

Financial Highlights (continued)

EMERGING MARKETS CORPORATE DEBT FUND

 

		Class C Shares
		12/6/2013
		to
		12/31/2013 (a)
Per Share Operating Performance
Net asset value, beginning of period			$15.00
Investment operations:
Net investment income (b)			.01
Net realized and unrealized loss			(.02	)
Total from investment operations			(.01	)
Distributions to shareholders from:
Net investment income			(.02	)
Net asset value, end of period			$14.97
Total Return (c)			(.09	)% (d)
Ratios to Average Net Assets:
Expenses, excluding expense reductions and including management fee waived and expenses reimbursed			1.86	% (e)
Expenses, including expense reductions, management fee waived and expenses reimbursed			1.86	% (e)
Expenses, excluding expense reductions, management fee waived and expenses reimbursed			6.07	% (e)
Net investment income			1.03	% (e)
Supplemental Data:
Net assets, end of period (000)			$100
Portfolio turnover rate			4.14	% (d)

(a)	Commencement of investment operations was 12/6/2013, SEC effective date was 10/28/2013 and date shares first became available to the public was 1/2/2014.
(b)	Calculated using average shares outstanding during the period.
(c)	Total return does not consider the effects of sales loads and assumes the reinvestment of all distributions.
(d)	Not annualized.
(e)	Annualized.

 

56

See Notes to Financial Statements.

Financial Highlights (continued)

EMERGING MARKETS CORPORATE DEBT FUND

 

		Class F Shares
		12/6/2013
		to
		12/31/2013 (a)
Per Share Operating Performance
Net asset value, beginning of period			$15.00
Investment operations:
Net investment income (b)			.02
Net realized and unrealized loss			(.02	)
Total from investment operations			—
Distributions to shareholders from:
Net investment income			(.03	)
Net asset value, end of period			$14.97
Total Return (c)			(.04	)% (d)
Ratios to Average Net Assets:
Expenses, excluding expense reductions and including management fee waived and expenses reimbursed			.95	% (e)
Expenses, including expense reductions, management fee waived and expenses reimbursed			.95	% (e)
Expenses, excluding expense reductions, management fee waived and expenses reimbursed			5.15	% (e)
Net investment income			1.94	% (e)
Supplemental Data:
Net assets, end of period (000)			$100
Portfolio turnover rate			4.14	% (d)

(a)	Commencement of investment operations was 12/6/2013, SEC effective date was 10/28/2013 and date shares first became available to the public was 1/2/2014.
(b)	Calculated using average shares outstanding during the period.
(c)	Total return assumes the reinvestment of all distributions.
(d)	Not annualized.
(e)	Annualized.

 

See Notes to Financial Statements.

57

Financial Highlights (continued)

EMERGING MARKETS CORPORATE DEBT FUND

 

		Class I Shares
		12/6/2013
		to
		12/31/2013 (a)
Per Share Operating Performance
Net asset value, beginning of period			$15.00
Investment operations:
Net investment income (b)			.02
Net realized and unrealized loss			(.02	)
Total from investment operations			—
Distributions to shareholders from:
Net investment income			(.03	)
Net asset value, end of period			$14.97
Total Return (c)			(.03	)% (d)
Ratios to Average Net Assets:
Expenses, excluding expense reductions and including management fee waived and expenses reimbursed			.85	% (e)
Expenses, including expense reductions, management fee waived and expenses reimbursed			.85	% (e)
Expenses, excluding expense reductions, management fee waived and expenses reimbursed			5.06	% (e)
Net investment income			2.03	% (e)
Supplemental Data:
Net assets, end of period (000)			$4,798
Portfolio turnover rate			4.14	% (d)

(a)	Commencement of investment operations was 12/6/2013, SEC effective date was 10/28/2013 and date shares first became available to the public was 1/2/2014.
(b)	Calculated using average shares outstanding during the period.
(c)	Total return assumes the reinvestment of all distributions.
(d)	Not annualized.
(e)	Annualized.

 

58

See Notes to Financial Statements.

Financial Highlights (continued)

EMERGING MARKETS CORPORATE DEBT FUND

 

		Class R2 Shares
		12/6/2013
		to
		12/31/2013 (a)
Per Share Operating Performance
Net asset value, beginning of period			$15.00
Investment operations:
Net investment income (b)			.02
Net realized and unrealized loss			(.02	)
Total from investment operations			—
Distributions to shareholders from:
Net investment income			(.03	)
Net asset value, end of period			$14.97
Total Return (c)			(.03	)% (d)
Ratios to Average Net Assets:
Expenses, excluding expense reductions and including management fee waived and expenses reimbursed			.85	% (e)
Expenses, including expense reductions, management fee waived and expenses reimbursed			.85	% (e)
Expenses, excluding expense reductions, management fee waived and expenses reimbursed			5.06	% (e)
Net investment income			2.03	% (e)
Supplemental Data:
Net assets, end of period (000)			$100
Portfolio turnover rate			4.14	% (d)

(a)	Commencement of investment operations was 12/6/2013, SEC effective date was 10/28/2013 and date shares first became available to the public was 1/2/2014.
(b)	Calculated using average shares outstanding during the period.
(c)	Total return assumes the reinvestment of all distributions.
(d)	Not annualized.
(e)	Annualized.

 

See Notes to Financial Statements.

59

Financial Highlights (concluded)

EMERGING MARKETS CORPORATE DEBT FUND

 

		Class R3 Shares
		12/6/2013
		to
		12/31/2013 (a)
Per Share Operating Performance
Net asset value, beginning of period			$15.00
Investment operations:
Net investment income (b)			.02
Net realized and unrealized loss			(.02	)
Total from investment operations			—
Distributions to shareholders from:
Net investment income			(.03	)
Net asset value, end of period			$14.97
Total Return (c)			(.03	)% (d)
Ratios to Average Net Assets:
Expenses, excluding expense reductions and including management fee waived and expenses reimbursed			.85	% (e)
Expenses, including expense reductions, management fee waived and expenses reimbursed			.85	% (e)
Expenses, excluding expense reductions, management fee waived and expenses reimbursed			5.07	% (e)
Net investment income			2.05	% (e)
Supplemental Data:
Net assets, end of period (000)			$100
Portfolio turnover rate			4.14	% (d)

(a)	Commencement of investment operations was 12/6/2013, SEC effective date was 10/28/2013 and date shares first became available to the public was 1/2/2014.
(b)	Calculated using average shares outstanding during the period.
(c)	Total return assumes the reinvestment of all distributions.
(d)	Not annualized.
(e)	Annualized.

 

60

See Notes to Financial Statements.

Financial Highlights

EMERGING MARKETS CURRENCY FUND

 

		Class A Shares
		Year Ended 12/31
		2013				2012				2011				2010				2009
Per Share Operating Performance
Net asset value, beginning of year			$6.63				$6.15				$6.74				$6.70				$5.72
Investment operations:
Net investment income (a)			.06				.07				.08				.11				.17
Net realized and unrealized gain (loss)			(.27	)			.58				(.46	)			.27				.99
Total from investment operations			(.21	)			.65				(.38	)			.38				1.16
Distributions to shareholders from:
Net investment income			(.10	)			(.15	)			(.18	)			(.20	)			(.18	)
Net realized gain			—				—				(.03	)			(.14	)			—
Return of capital			(.07	)			(.02	)			—				—				—
Total distributions			(.17	)			(.17	)			(.21	)			(.34	)			(.18	)
Net asset value, end of year			$6.25				$6.63				$6.15				$6.74				$6.70
Total Return (b)			(3.21	)%			10.69	%			(5.87	)%			5.79	%			20.53	%
Ratios to Average Net Assets:
Expenses, excluding expense reductions and including expenses reimbursed			.99	%			1.01	%			1.02	%			1.17	%			1.27	%
Expenses, including expense reductions and expenses reimbursed			.99	%			1.01	%			1.02	%			1.17	%			1.27	%
Expenses, excluding expense reductions and expenses reimbursed			.99	%			1.01	%			1.02	%			1.17	%			1.27	%
Net investment income			.97	%			1.02	%			1.18	%			1.68	%			2.69	%
Supplemental Data:
Net assets, end of year (000)			$47,961				$73,947				$80,034				$98,279				$109,152
Portfolio turnover rate			105.11	%			141.92	%			130.30	%			113.50	%			90.72	%

(a)	Calculated using average shares outstanding during the year.
(b)	Total return does not consider the effects of sales loads and assumes the reinvestment of all distributions.

 

See Notes to Financial Statements.

61

Financial Highlights (continued)

EMERGING MARKETS CURRENCY FUND

 

		Class B Shares
		Year Ended 12/31
		2013				2012				2011				2010				2009
Per Share Operating Performance
Net asset value, beginning of year			$6.66				$6.18				$6.77				$6.73				$5.74
Investment operations:
Net investment income (a)			.01				.02				.03				.07				.13
Net realized and unrealized gain (loss)			(.27	)			.58				(.46	)			.26				.99
Total from investment operations			(.26	)			.60				(.43	)			.33				1.12
Distributions to shareholders from:
Net investment income			(.07	)			(.10	)			(.13	)			(.15	)			(.13	)
Net realized gain			—				—				(.03	)			(.14	)			—
Return of capital			(.05	)			(.02	)			—				—				—
Total distributions			(.12	)			(.12	)			(.16	)			(.29	)			(.13	)
Net asset value, end of year			$6.28				$6.66				$6.18				$6.77				$6.73
Total Return (b)			(3.95	)%			9.79	%			(6.55	)%			5.10	%			19.68	%
Ratios to Average Net Assets:
Expenses, excluding expense reductions and including expenses reimbursed			1.79	%			1.80	%			1.80	%			1.83	%			1.93	%
Expenses, including expense reductions and expenses reimbursed			1.79	%			1.80	%			1.80	%			1.83	%			1.93	%
Expenses, excluding expense reductions and expenses reimbursed			1.79	%			1.80	%			1.80	%			1.83	%			1.93	%
Net investment income			.18	%			.24	%			.44	%			1.05	%			2.11	%
Supplemental Data:
Net assets, end of year (000)			$696				$1,219				$1,674				$2,693				$3,884
Portfolio turnover rate			105.11	%			141.92	%			130.30	%			113.50	%			90.72	%

(a)	Calculated using average shares outstanding during the year.
(b)	Total return does not consider the effects of sales loads and assumes the reinvestment of all distributions.

 

62

See Notes to Financial Statements.

Financial Highlights (continued)

EMERGING MARKETS CURRENCY FUND

 

		Class C Shares
		Year Ended 12/31
		2013				2012				2011				2010				2009
Per Share Operating Performance
Net asset value, beginning of year			$6.67				$6.19				$6.78				$6.74				$5.74
Investment operations:
Net investment income (a)			.02				.02				.03				.07				.13
Net realized and unrealized gain (loss)			(.27	)			.59				(.46	)			.26				1.00
Total from investment operations			(.25	)			.61				(.43	)			.33				1.13
Distributions to shareholders from:
Net investment income			(.07	)			(.11	)			(.13	)			(.15	)			(.13	)
Net realized gain			—				—				(.03	)			(.14	)			—
Return of capital			(.06	)			(.02	)			—				—				—
Total distributions			(.13	)			(.13	)			(.16	)			(.29	)			(.13	)
Net asset value, end of year			$6.29				$6.67				$6.19				$6.78				$6.74
Total Return (b)			(3.78	)%			9.91	%			(6.44	)%			5.09	%			19.85	%
Ratios to Average Net Assets:
Expenses, excluding expense reductions and including expenses reimbursed			1.62	%			1.68	%			1.69	%			1.82	%			1.91	%
Expenses, including expense reductions and expenses reimbursed			1.62	%			1.68	%			1.69	%			1.82	%			1.91	%
Expenses, excluding expense reductions and expenses reimbursed			1.62	%			1.68	%			1.69	%			1.82	%			1.91	%
Net investment income			.34	%			.37	%			.51	%			1.02	%			2.03	%
Supplemental Data:
Net assets, end of year (000)			$17,378				$28,543				$36,551				$34,232				$27,512
Portfolio turnover rate			105.11	%			141.92	%			130.30	%			113.50	%			90.72	%

(a)	Calculated using average shares outstanding during the year.
(b)	Total return does not consider the effects of sales loads and assumes the reinvestment of all distributions.

 

See Notes to Financial Statements.

63

Financial Highlights (continued)

EMERGING MARKETS CURRENCY FUND

 

		Class F Shares
		Year Ended 12/31
		2013				2012				2011				2010				2009
Per Share Operating Performance
Net asset value, beginning of year			$6.62				$6.15				$6.74				$6.69				$5.71
Investment operations:
Net investment income (a)			.07				.07				.09				.13				.18
Net realized and unrealized gain (loss)			(.27	)			.58				(.47	)			.27				.99
Total from investment operations			(.20	)			.65				(.38	)			.40				1.17
Distributions to shareholders from:
Net investment income			(.09	)			(.16	)			(.18	)			(.21	)			(.19	)
Net realized gain			—				—				(.03	)			(.14	)			—
Return of capital			(.08	)			(.02	)			—				—				—
Total distributions			(.17	)			(.18	)			(.21	)			(.35	)			(.19	)
Net asset value, end of year			$6.25				$6.62				$6.15				$6.74				$6.69
Total Return (b)			(2.97	)%			10.63	%			(5.77	)%			6.20	%			20.82	%
Ratios to Average Net Assets:
Expenses, excluding expense reductions and including expenses reimbursed			.89	%			.91	%			.91	%			.92	%			.98	%
Expenses, including expense reductions and expenses reimbursed			.89	%			.91	%			.91	%			.92	%			.98	%
Expenses, excluding expense reductions and expenses reimbursed			.89	%			.91	%			.91	%			.92	%			.98	%
Net investment income			1.06	%			1.12	%			1.27	%			1.88	%			2.72	%
Supplemental Data:
Net assets, end of year (000)			$36,181				$71,622				$76,795				$61,059				$24,463
Portfolio turnover rate			105.11	%			141.92	%			130.30	%			113.50	%			90.72	%

(a)	Calculated using average shares outstanding during the year.
(b)	Total return assumes the reinvestment of all distributions.

 

64

See Notes to Financial Statements.

Financial Highlights (continued)

EMERGING MARKETS CURRENCY FUND

 

		Class I Shares
		Year Ended 12/31
		2013				2012				2011				2010				2009
Per Share Operating Performance
Net asset value, beginning of year			$6.61				$6.14				$6.73				$6.69				$5.72
Investment operations:
Net investment income (a)			.08				.08				.09				.13				.19
Net realized and unrealized gain (loss)			(.27	)			.57				(.46	)			.27				.98
Total from investment operations			(.19	)			.65				(.37	)			.40				1.17
Distributions to shareholders from:
Net investment income			(.10	)			(.16	)			(.19	)			(.22	)			(.20	)
Net realized gain			—				—				(.03	)			(.14	)			—
Return of capital			(.08	)			(.02	)			—				—				—
Total distributions			(.18	)			(.18	)			(.22	)			(.36	)			(.20	)
Net asset value, end of year			$6.24				$6.61				$6.14				$6.73				$6.69
Total Return (b)			(2.88	)%			10.75	%			(5.68	)%			6.17	%			20.89	%
Ratios to Average Net Assets:
Expenses, excluding expense reductions and including expenses reimbursed			.80	%			.80	%			.81	%			.83	%			.92	%
Expenses, including expense reductions and expenses reimbursed			.80	%			.80	%			.81	%			.83	%			.92	%
Expenses, excluding expense reductions and expenses reimbursed			.80	%			.80	%			.81	%			.83	%			.92	%
Net investment income			1.18	%			1.21	%			1.40	%			2.00	%			3.06	%
Supplemental Data:
Net assets, end of year (000)			$295,136				$271,710				$119,329				$79,092				$27,176
Portfolio turnover rate			105.11	%			141.92	%			130.30	%			113.50	%			90.72	%

(a)	Calculated using average shares outstanding during the year.
(b)	Total return assumes the reinvestment of all distributions.

 

See Notes to Financial Statements.

65

Financial Highlights (continued)

EMERGING MARKETS CURRENCY FUND

 

		Class P Shares
		Year Ended 12/31
		2013				2012				2011				2010				2009
Per Share Operating Performance
Net asset value, beginning of year			$6.62				$6.14				$6.74				$6.69				$5.71
Investment operations:
Net investment income (a)			.05				.05				.07				.11				.16
Net realized and unrealized gain (loss)			(.26	)			.59				(.48	)			.27				.99
Total from investment operations			(.21	)			.64				(.41	)			.38				1.15
Distributions to shareholders from:
Net investment income			(.09	)			(.14	)			(.16	)			(.19	)			(.17	)
Net realized gain			—				—				(.03	)			(.14	)			—
Return of capital			(.07	)			(.02	)			—				—				—
Total distributions			(.16	)			(.16	)			(.19	)			(.33	)			(.17	)
Net asset value, end of year			$6.25				$6.62				$6.14				$6.74				$6.69
Total Return (b)			(3.26	)%			10.27	%			(6.07	)%			5.87	%			20.43	%
Ratios to Average Net Assets:
Expenses, excluding expense reductions and including expenses reimbursed			1.22	%			1.24	%			1.25	%			1.27	%			1.32	%
Expenses, including expense reductions			1.22	%			1.24	%			1.25	%			1.27	%			1.32	%
Expenses, excluding expense reductions			1.22	%			1.24	%			1.25	%			1.27	%			1.32	%
Net investment income			.78	%			.80	%			.98	%			1.61	%			2.50	%
Supplemental Data:
Net assets, end of year (000)			$8				$10				$9				$32				$16
Portfolio turnover rate			105.11	%			141.92	%			130.30	%			113.50	%			90.72	%

(a)	Calculated using average shares outstanding during the year.
(b)	Total return assumes the reinvestment of all distributions.

 

66

See Notes to Financial Statements.

Financial Highlights (continued)

EMERGING MARKETS CURRENCY FUND

 

		Class R2 Shares
		Year Ended 12/31
		2013				2012				2011				2010				2009
Per Share Operating Performance
Net asset value, beginning of year			$6.64				$6.16				$6.75				$6.71				$5.72
Investment operations:
Net investment income (a)			.04				.04				.05				.09				.15
Net realized and unrealized gain (loss)			(.28	)			.59				(.46	)			.27				1.00
Total from investment operations			(.24	)			.63				(.41	)			.36				1.15
Distributions to shareholders from:
Net investment income			(.08	)			(.13	)			(.15	)			(.18	)			(.16	)
Net realized gain			—				—				(.03	)			(.14	)			—
Return of capital			(.06	)			(.02	)			—				—				—
Total distributions			(.14	)			(.15	)			(.18	)			(.32	)			(.16	)
Net asset value, end of year			$6.26				$6.64				$6.16				$6.75				$6.71
Total Return (b)			(3.59	)%			10.24	%			(6.22	)%			5.54	%			20.12	%
Ratios to Average Net Assets:
Expenses, excluding expense reductions and including expenses reimbursed			1.40	%			1.41	%			1.41	%			1.42	%			1.50	%
Expenses, including expense reductions and expenses reimbursed			1.40	%			1.41	%			1.41	%			1.42	%			1.50	%
Expenses, excluding expense reductions and expenses reimbursed			1.40	%			1.41	%			1.41	%			1.42	%			1.50	%
Net investment income			.58	%			.63	%			.76	%			1.39	%			2.44	%
Supplemental Data:
Net assets, end of year (000)			$248				$300				$218				$70				$23
Portfolio turnover rate			105.11	%			141.92	%			130.30	%			113.50	%			90.72	%

(a)	Calculated using average shares outstanding during the year.
(b)	Total return assumes the reinvestment of all distributions.

 

See Notes to Financial Statements.

67

Financial Highlights (concluded)

EMERGING MARKETS CURRENCY FUND

 

		Class R3 Shares
		Year Ended 12/31
		2013				2012				2011				2010				2009
Per Share Operating Performance
Net asset value, beginning of year			$6.61				$6.14				$6.73				$6.70				$5.72
Investment operations:
Net investment income (a)			.04				.05				.06				.10				.16
Net realized and unrealized gain (loss)			(.26	)			.57				(.46	)			.26				.99
Total from investment operations			(.22	)			.62				(.40	)			.36				1.15
Distributions to shareholders from:
Net investment income			(.09	)			(.13	)			(.16	)			(.19	)			(.17	)
Net realized gain			—				—				(.03	)			(.14	)			—
Return of capital			(.06	)			(.02	)			—				—				—
Total distributions			(.15	)			(.15	)			(.19	)			(.33	)			(.17	)
Net asset value, end of year			$6.24				$6.61				$6.14				$6.73				$6.70
Total Return (b)			(3.35	)%			10.23	%			(6.14	)%			5.49	%			20.33	%
Ratios to Average Net Assets:
Expenses, excluding expense reductions and including expenses reimbursed			1.28	%			1.29	%			1.31	%			1.33	%			1.41	%
Expenses, including expense reductions and expenses reimbursed			1.28	%			1.29	%			1.31	%			1.33	%			1.41	%
Expenses, excluding expense reductions and expenses reimbursed			1.28	%			1.29	%			1.31	%			1.33	%			1.41	%
Net investment income			.70	%			.74	%			.92	%			1.48	%			2.52	%
Supplemental Data:
Net assets, end of year (000)			$494				$617				$411				$326				$103
Portfolio turnover rate			105.11	%			141.92	%			130.30	%			113.50	%			90.72	%

(a)	Calculated using average shares outstanding during the year.
(b)	Total return assumes the reinvestment of all distributions.

 

68

See Notes to Financial Statements.

Financial Highlights

EMERGING MARKETS LOCAL BOND FUND

 

		Class A Shares
		6/21/2013
		to
		12/31/2013 (a)
Per Share Operating Performance
Net asset value, beginning of period			$15.00
Investment operations:
Net investment income (b)			.37
Net realized and unrealized loss			(.51	)
Total from investment operations			(.14	)
Distributions to shareholders from:
Net investment income			(.47	)
Net asset value, end of period			$14.39
Total Return (c)			(0.97	)% (d)
Ratios to Average Net Assets:
Expenses, excluding expense reductions and including management fee waived and expenses reimbursed			1.02	% (e)
Expenses, including expense reductions, management fee waived and expenses reimbursed			1.02	% (e)
Expenses, excluding expense reductions, management fee waived and expenses reimbursed			5.09	% (e)
Net investment income			4.79	% (e)
Supplemental Data:
Net assets, end of period (000)			$4,950
Portfolio turnover rate			28.21	% (d)

(a)	Commencement of investment operations was 6/21/2013, SEC effective date was 5/1/2013 and date shares first became available to the public was 7/1/2013.
(b)	Calculated using average shares outstanding during the period.
(c)	Total return does not consider the effects of sales loads and assumes the reinvestment of all distributions.
(d)	Not annualized.
(e)	Annualized.

 

See Notes to Financial Statements.

69

Financial Highlights (continued)

EMERGING MARKETS LOCAL BOND FUND

 

		Class C Shares
		6/21/2013
		to
		12/31/2013 (a)
Per Share Operating Performance
Net asset value, beginning of period			$15.00
Investment operations:
Net investment income (b)			.31
Net realized and unrealized loss			(.52	)
Total from investment operations			(.21	)
Distributions to shareholders from:
Net investment income			(.41	)
Net asset value, end of period			$14.38
Total Return (c)			(1.43	)% (d)
Ratios to Average Net Assets:
Expenses, excluding expense reductions and including management fee waived and expenses reimbursed			1.77	% (e)
Expenses, including expense reductions, management fee waived and expenses reimbursed			1.77	% (e)
Expenses, excluding expense reductions, management fee waived and expenses reimbursed			5.63	% (e)
Net investment income			3.97	% (e)
Supplemental Data:
Net assets, end of period (000)			$226
Portfolio turnover rate			28.21	% (d)

(a)	Commencement of investment operations was 6/21/2013, SEC effective date was 5/1/2013 and date shares first became available to the public was 7/1/2013.
(b)	Calculated using average shares outstanding during the period.
(c)	Total return does not consider the effects of sales loads and assumes the reinvestment of all distributions.
(d)	Not annualized.
(e)	Annualized.

 

70

See Notes to Financial Statements.

Financial Highlights (continued)

EMERGING MARKETS LOCAL BOND FUND

 

		Class F Shares
		6/21/2013
		to
		12/31/2013 (a)
Per Share Operating Performance
Net asset value, beginning of period			$15.00
Investment operations:
Net investment income (b)			.38
Net realized and unrealized loss			(.52	)
Total from investment operations			(.14	)
Distributions to shareholders from:
Net investment income			(.48	)
Net asset value, end of period			$14.38
Total Return (c)			(0.99	)% (d)
Ratios to Average Net Assets:
Expenses, excluding expense reductions and including management fee waived and expenses reimbursed			.92	% (e)
Expenses, including expense reductions, management fee waived and expenses reimbursed			.92	% (e)
Expenses, excluding expense reductions, management fee waived and expenses reimbursed			5.16	% (e)
Net investment income			4.84	% (e)
Supplemental Data:
Net assets, end of period (000)			$116
Portfolio turnover rate			28.21	% (d)

(a)	Commencement of investment operations was 6/21/2013, SEC effective date was 5/1/2013 and date shares first became available to the public was 7/1/2013.
(b)	Calculated using average shares outstanding during the period.
(c)	Total return assumes the reinvestment of all distributions.
(d)	Not annualized.
(e)	Annualized.

 

See Notes to Financial Statements.

71

Financial Highlights (continued)

EMERGING MARKETS LOCAL BOND FUND

 

		Class I Shares
		6/21/2013
		to
		12/31/2013 (a)
Per Share Operating Performance
Net asset value, beginning of period			$15.00
Investment operations:
Net investment income (b)			.38
Net realized and unrealized loss			(.52	)
Total from investment operations			(.14	)
Distributions to shareholders from:
Net investment income			(.48	)
Net asset value, end of period			$14.38
Total Return (c)			(0.94	)% (d)
Ratios to Average Net Assets:
Expenses, excluding expense reductions and including management fee waived and expenses reimbursed			.82	% (e)
Expenses, including expense reductions, management fee waived and expenses reimbursed			.82	% (e)
Expenses, excluding expense reductions, management fee waived and expenses reimbursed			5.19	% (e)
Net investment income			4.94	% (e)
Supplemental Data:
Net assets, end of period (000)			$2,286
Portfolio turnover rate			28.21	% (d)

(a)	Commencement of investment operations was 6/21/2013, SEC effective date was 5/1/2013 and date shares first became available to the public was 7/1/2013.
(b)	Calculated using average shares outstanding during the period.
(c)	Total return assumes the reinvestment of all distributions.
(d)	Not annualized.
(e)	Annualized.

 

72

See Notes to Financial Statements.

Financial Highlights (continued)

EMERGING MARKETS LOCAL BOND FUND

 

		Class R2 Shares
		6/21/2013
		to
		12/31/2013 (a)
Per Share Operating Performance
Net asset value, beginning of period			$15.00
Investment operations:
Net investment income (b)			.34
Net realized and unrealized loss			(.52	)
Total from investment operations			(.18	)
Distributions to shareholders from:
Net investment income			(.44	)
Net asset value, end of period			$14.38
Total Return (c)			(1.23	)% (d)
Ratios to Average Net Assets:
Expenses, excluding expense reductions and including management fee waived and expenses reimbursed			1.40	% (e)
Expenses, including expense reductions, management fee waived and expenses reimbursed			1.40	% (e)
Expenses, excluding expense reductions, management fee waived and expenses reimbursed			5.79	% (e)
Net investment income			4.36	% (e)
Supplemental Data:
Net assets, end of period (000)			$99
Portfolio turnover rate			28.21	% (d)

(a)	Commencement of investment operations was 6/21/2013, SEC effective date was 5/1/2013 and date shares first became available to the public was 7/1/2013.
(b)	Calculated using average shares outstanding during the period.
(c)	Total return assumes the reinvestment of all distributions.
(d)	Not annualized.
(e)	Annualized.

 

See Notes to Financial Statements.

73

Financial Highlights (concluded)

EMERGING MARKETS LOCAL BOND FUND

 

		Class R3 Shares
		6/21/2013
		to
		12/31/2013 (a)
Per Share Operating Performance
Net asset value, beginning of period			$15.00
Investment operations:
Net investment income (b)			.35
Net realized and unrealized loss			(.52	)
Total from investment operations			(.17	)
Distributions to shareholders from:
Net investment income			(.45	)
Net asset value, end of period			$14.38
Total Return (c)			(1.18	)% (d)
Ratios to Average Net Assets:
Expenses, excluding expense reductions and including management fee waived and expenses reimbursed			1.30	% (e)
Expenses, including expense reductions, management fee waived and expenses reimbursed			1.30	% (e)
Expenses, excluding expense reductions, management fee waived and expenses reimbursed			5.69	% (e)
Net investment income			4.46	% (e)
Supplemental Data:
Net assets, end of period (000)			$99
Portfolio turnover rate			28.21	% (d)

(a)	Commencement of investment operations was 6/21/2013, SEC effective date was 5/1/2013 and date shares first became available to the public was 7/1/2013.
(b)	Calculated using average shares outstanding during the period.
(c)	Total return assumes the reinvestment of all distributions.
(d)	Not annualized.
(e)	Annualized.

 

74

See Notes to Financial Statements.

Financial Highlights

MULTI-ASSET GLOBAL OPPORTUNITY FUND (formerly, GLOBAL ALLOCATION FUND)

 

		Class A Shares
		Year Ended 12/31
		2013				2012				2011				2010				2009
Per Share Operating Performance
Net asset value, beginning of year			$11.42				$10.29				$11.41				$10.56				$7.95
Investment operations:
Net investment income (a)			.39				.36				.35				.33				.28
Net realized and unrealized gain (loss)			1.26				1.16				(1.12	)			.84				2.66
Total from investment operations			1.65				1.52				(.77	)			1.17				2.94
Distributions to shareholders from:
Net investment income			(.50	)			(.38	)			(.35	)			(.32	)			(.33	)
Net realized gain			(.08	)			—				—				—				—
Return of capital			—				(.01	)			—				—				—
Total distributions			(.58	)			(.39	)			(.35	)			(.32	)			(.33	)
Net asset value, end of year			$12.49				$11.42				$10.29				$11.41				$10.56
Total Return (b)			14.66	%			15.02	%			(6.89	)%			11.36	%			37.83	%
Ratios to Average Net Assets: (c)
Expenses, excluding expense reductions and including expenses assumed and management fee waived			.31	%			.30	%			.28	%			.35	%			.35	%
Expenses, including expense reductions, expenses assumed and management fee waived			.31	%			.30	%			.28	%			.35	%			.35	%
Expenses, excluding expense reductions, expenses assumed and management fee waived			.77	%			.80	%			.84	%			.94	%			1.17	%
Net investment income			3.20	%			3.31	%			3.11	%			3.07	%			3.15	%
Supplemental Data:
Net assets, end of year (000)			$139,986				$110,910				$108,217				$107,234				$83,625
Portfolio turnover rate			23.32	%			36.34	%			27.66	%			9.48	%			6.81	%

(a)	Calculated using average shares outstanding during the year.
(b)	Total return does not consider the effects of sales loads and assumes the reinvestment of all distributions.
(c)	Does not include expenses of the Underlying Funds in which the Fund invests.

 

See Notes to Financial Statements.

75

Financial Highlights (continued)

MULTI-ASSET GLOBAL OPPORTUNITY FUND (formerly, GLOBAL ALLOCATION FUND)

 

		Class B Shares
		Year Ended 12/31
		2013				2012				2011				2010				2009
Per Share Operating Performance
Net asset value, beginning of year			$10.53				$9.51				$10.57				$9.81				$7.38
Investment operations:
Net investment income (a)			.26				.25				.24				.23				.21
Net realized and unrealized gain (loss)			1.16				1.09				(1.03	)			.79				2.48
Total from investment operations			1.42				1.34				(.79	)			1.02				2.69
Distributions to shareholders from:
Net investment income			(.41	)			(.31	)			(.27	)			(.26	)			(.26	)
Net realized gain			(.08	)			—				—				—				—
Return of capital			—				(.01	)			—				—				—
Total distributions			(.49	)			(.32	)			(.27	)			(.26	)			(.26	)
Net asset value, end of year			$11.46				$10.53				$9.51				$10.57				$9.81
Total Return (b)			13.70	%			14.24	%			(7.56	)%			10.60	%			37.10	%
Ratios to Average Net Assets: (c)
Expenses, excluding expense reductions and including expenses assumed and management fee waived			1.05	%			1.04	%			.99	%			1.00	%			1.00	%
Expenses, including expense reductions, expenses assumed and management fee waived			1.05	%			1.04	%			.99	%			1.00	%			1.00	%
Expenses, excluding expense reductions, expenses assumed and management fee waived			1.51	%			1.54	%			1.55	%			1.59	%			1.82	%
Net investment income			2.32	%			2.51	%			2.29	%			2.35	%			2.49	%
Supplemental Data:
Net assets, end of year (000)			$6,020				$6,939				$8,276				$11,389				$10,668
Portfolio turnover rate			23.32	%			36.34	%			27.66	%			9.48	%			6.81	%

(a)	Calculated using average shares outstanding during the year.
(b)	Total return does not consider the effects of sales loads and assumes the reinvestment of all distributions.
(c)	Does not include expenses of the Underlying Funds in which the Fund invests.

 

76

See Notes to Financial Statements.

Financial Highlights (continued)

MULTI-ASSET GLOBAL OPPORTUNITY FUND (formerly, GLOBAL ALLOCATION FUND)

 

		Class C Shares
		Year Ended 12/31
		2013				2012				2011				2010				2009
Per Share Operating Performance
Net asset value, beginning of year			$10.54				$9.53				$10.59				$9.83				$7.40
Investment operations:
Net investment income (a)			.27				.26				.25				.24				.22
Net realized and unrealized gain (loss)			1.16				1.07				(1.03	)			.78				2.47
Total from investment operations			1.43				1.33				(.78	)			1.02				2.69
Distributions to shareholders from:
Net investment income			(.42	)			(.31	)			(.28	)			(.26	)			(.26	)
Net realized gain			(.08	)			—				—				—				—
Return of capital			—				(.01	)			—				—				—
Total distributions			(.50	)			(.32	)			(.28	)			(.26	)			(.26	)
Net asset value, end of year			$11.47				$10.54				$9.53				$10.59				$9.83
Total Return (b)			13.76	%			14.17	%			(7.48	)%			10.58	%			37.00	%
Ratios to Average Net Assets: (c)
Expenses, excluding expense reductions and including expenses assumed and management fee waived			1.05	%			1.04	%			.97	%			1.00	%			1.00	%
Expenses, including expense reductions, expenses assumed and management fee waived			1.05	%			1.04	%			.97	%			1.00	%			1.00	%
Expenses, excluding expense reductions, expenses assumed and management fee waived			1.51	%			1.53	%			1.53	%			1.59	%			1.80	%
Net investment income			2.45	%			2.62	%			2.42	%			2.46	%			2.55	%
Supplemental Data:
Net assets, end of year (000)			$35,963				$29,821				$26,322				$25,893				$17,741
Portfolio turnover rate			23.32	%			36.34	%			27.66	%			9.48	%			6.81	%

(a)	Calculated using average shares outstanding during the year.
(b)	Total return does not consider the effects of sales loads and assumes the reinvestment of all distributions.
(c)	Does not include expenses of the Underlying Funds in which the Fund invests.

 

See Notes to Financial Statements.

77

Financial Highlights (continued)

MULTI-ASSET GLOBAL OPPORTUNITY FUND (formerly, GLOBAL ALLOCATION FUND)

 

		Class F Shares
		Year Ended 12/31
		2013				2012				2011				2010				2009
Per Share Operating Performance
Net asset value, beginning of year			$11.43				$10.29				$11.41				$10.56				$7.95
Investment operations:
Net investment income (a)			.44				.36				.37				.39				.35
Net realized and unrealized gain (loss)			1.22				1.19				(1.12	)			.80				2.61
Total from investment operations			1.66				1.55				(.75	)			1.19				2.96
Distributions to shareholders from:
Net investment income			(.52	)			(.40	)			(.37	)			(.34	)			(.35	)
Net realized gain			(.08	)			—				—				—				—
Return of capital			—				(.01	)			—				—				—
Total distributions			(.60	)			(.41	)			(.37	)			(.34	)			(.35	)
Net asset value, end of year			$12.49				$11.43				$10.29				$11.41				$10.56
Total Return (b)			14.73	%			15.28	%			(6.72	)%			11.57	%			38.16	%
Ratios to Average Net Assets: (c)
Expenses, excluding expense reductions and including expenses assumed and management fee waived			.16	%			.15	%			.10	%			.10	%			.10	%
Expenses, including expense reductions, expenses assumed and management fee waived			.16	%			.15	%			.10	%			.10	%			.10	%
Expenses, excluding expense reductions, expenses assumed and management fee waived			.62	%			.65	%			.66	%			.69	%			.83	%
Net investment income			3.60	%			3.31	%			3.36	%			3.63	%			3.66	%
Supplemental Data:
Net assets, end of year (000)			$6,472				$2,423				$3,156				$2,256				$641
Portfolio turnover rate			23.32	%			36.34	%			27.66	%			9.48	%			6.81	%

(a)	Calculated using average shares outstanding during the year.
(b)	Total return assumes the reinvestment of all distributions.
(c)	Does not include expenses of the Underlying Funds in which the Fund invests.

 

78

See Notes to Financial Statements.

Financial Highlights (continued)

MULTI-ASSET GLOBAL OPPORTUNITY FUND (formerly, GLOBAL ALLOCATION FUND)

 

		Class I Shares
		Year Ended 12/31
		2013				2012				2011				2010				2009
Per Share Operating Performance
Net asset value, beginning of year			$11.49				$10.34				$11.47				$10.61				$7.98
Investment operations:
Net investment income (a)			.42				.39				.38				.37				.32
Net realized and unrealized gain (loss)			1.26				1.18				(1.13	)			.84				2.67
Total from investment operations			1.68				1.57				(.75	)			1.21				2.99
Distributions to shareholders from:
Net investment income			(.53	)			(.41	)			(.38	)			(.35	)			(.36	)
Net realized gain			(.08	)			—				—				—				—
Return of capital			—				(.01	)			—				—				—
Total distributions			(.61	)			(.42	)			(.38	)			(.35	)			(.36	)
Net asset value, end of year			$12.56				$11.49				$10.34				$11.47				$10.61
Total Return (b)			14.85	%			15.42	%			(6.69	)%			11.69	%			38.39	%
Ratios to Average Net Assets: (c)
Expenses, excluding expense reductions and including expenses assumed and management fee waived			.06	%			.05	%			.00	%			.00	%			.00	%
Expenses, including expense reductions, expenses assumed and management fee waived			.06	%			.05	%			.00	%			.00	%			.00	%
Expenses, excluding expense reductions, expenses assumed and management fee waived			.52	%			.55	%			.57	%			.60	%			.80	%
Net investment income			3.44	%			3.57	%			3.38	%			3.40	%			3.55	%
Supplemental Data:
Net assets, end of year (000)			$34,086				$22,289				$14,086				$8,460				$1,055
Portfolio turnover rate			23.32	%			36.34	%			27.66	%			9.48	%			6.81	%

(a)	Calculated using average shares outstanding during the year.
(b)	Total return assumes the reinvestment of all distributions.
(c)	Does not include expenses of the Underlying Funds in which the Fund invests.

 

See Notes to Financial Statements.

79

Financial Highlights (continued)

MULTI-ASSET GLOBAL OPPORTUNITY FUND (formerly, GLOBAL ALLOCATION FUND)

 

		Class R2 Shares
		Year Ended 12/31
		2013				2012				2011				2010				2009
Per Share Operating Performance
Net asset value, beginning of year			$11.62				$10.46				$11.55				$10.64				$7.96
Investment operations:
Net investment income (a)			.33				.34				.49				.36				.31
Net realized and unrealized gain (loss)			1.30				1.18				(1.26	)			.85				2.68
Total from investment operations			1.63				1.52				(.77	)			1.21				2.99
Distributions to shareholders from:
Net investment income			(.45	)			(.35	)			(.32	)			(.30	)			(.31	)
Net realized gain			(.08	)			—				—				—				—
Return of capital			—				(.01	)			—				—				—
Total distributions			(.53	)			(.36	)			(.32	)			(.30	)			(.31	)
Net asset value, end of year			$12.72				$11.62				$10.46				$11.55				$10.64
Total Return (b)			14.13	%			14.71	%			(6.77	)%			11.63	%			38.36	%
Ratios to Average Net Assets: (c)
Expenses, excluding expense reductions and including expenses assumed and management fee waived			.66	%			.61	%			.34	%			.05	%			.00	%
Expenses, including expense reductions, expenses assumed and management fee waived			.66	%			.61	%			.34	%			.05	%			.00	%
Expenses, excluding expense reductions, expenses assumed and management fee waived			1.12	%			1.11	%			.93	%			.65	%			.81	%
Net investment income			2.68	%			3.05	%			4.44	%			3.38	%			3.46	%
Supplemental Data:
Net assets, end of year (000)			$89				$107				$88				$11				$10
Portfolio turnover rate			23.32	%			36.34	%			27.66	%			9.48	%			6.81	%

(a)	Calculated using average shares outstanding during the year.
(b)	Total return assumes the reinvestment of all distributions.
(c)	Does not include expenses of the Underlying Funds in which the Fund invests.

 

80

See Notes to Financial Statements.

Financial Highlights (concluded)

MULTI-ASSET GLOBAL OPPORTUNITY FUND (formerly, GLOBAL ALLOCATION FUND)

 

		Class R3 Shares
		Year Ended 12/31
		2013				2012				2011				2010				2009
Per Share Operating Performance
Net asset value, beginning of year			$11.48				$10.34				$11.47				$10.62				$7.95
Investment operations:
Net investment income (a)			.36				.35				.34				.34				.37
Net realized and unrealized gain (loss)			1.26				1.16				(1.14	)			.82				2.62
Total from investment operations			1.62				1.51				(.80	)			1.16				2.99
Distributions to shareholders from:
Net investment income			(.47	)			(.36	)			(.33	)			(.31	)			(.32	)
Net realized gain			(.08	)			—				—				—				—
Return of capital			—				(.01	)			—				—				—
Total distributions			(.55	)			(.37	)			(.33	)			(.31	)			(.32	)
Net asset value, end of year			$12.55				$11.48				$10.34				$11.47				$10.62
Total Return (b)			14.33	%			14.81	%			(7.10	)%			11.17	%			38.40	%
Ratios to Average Net Assets: (c)
Expenses, excluding expense reductions and including expenses assumed and management fee waived			.53	%			.52	%			.47	%			.50	%			.26	%
Expenses, including expense reductions, expenses assumed and management fee waived			.53	%			.52	%			.47	%			.50	%			.26	%
Expenses, excluding expense reductions, expenses assumed and management fee waived			.99	%			1.02	%			1.04	%			1.10	%			.92	%
Net investment income			2.95	%			3.17	%			3.03	%			3.20	%			3.79	%
Supplemental Data:
Net assets, end of year (000)			$5,785				$5,211				$3,285				$2,179				$51
Portfolio turnover rate			23.32	%			36.34	%			27.66	%			9.48	%			6.81	%

(a)	Calculated using average shares outstanding during the year.
(b)	Total return assumes the reinvestment of all distributions.
(c)	Does not include expenses of the Underlying Funds in which the Fund invests.

 

See Notes to Financial Statements.

81

Notes to Financial Statements

 

1.	ORGANIZATION

 

Lord Abbett Global Fund, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company and was incorporated under Maryland law on February 23, 1988. The Company consists of the following four funds (each, a “Fund” and collectively, the “Funds”) and their respective classes: Lord Abbett Emerging Markets Corporate Debt Fund (“Emerging Markets Corporate Debt Fund”), Class A, C, F, I, R2 and R3 shares; Lord Abbett Emerging Markets Currency Fund (“Emerging Markets Currency Fund”), Class A, B, C, F, I, P, R2 and R3 shares; Lord Abbett Emerging Markets Local Bond Fund (“Emerging Markets Local Bond Fund”), Class A, C, F, I, R2 and R3 shares and Lord Abbett Multi-Asset Global Opportunity Fund (“Multi-Asset Global Opportunity Fund”; formerly, Lord Abbett Global Allocation Fund), Class A, B, C, F, I, P, R2 and R3 shares. Emerging Markets Corporate Debt Fund and Multi-Asset Global Opportunity Fund are each diversified as defined in the Act and Emerging Markets Currency Fund and Emerging Markets Local Bond Fund are each non-diversified as defined in the Act. Emerging Markets Corporate Debt Fund commenced operations on December 6, 2013, became effective with the Securities and Exchange Commission (“SEC”) on October 28, 2013 and shares became available to the public on January 2, 2014. Emerging Markets Local Bond Fund commenced operations on June 21, 2013, became effective with the SEC on May 1, 2013 and shares became available to the public on July 1, 2013.

 

Emerging Markets Currency Fund’s investment objective is to seek high total return. Emerging Markets Corporate Debt Fund, Emerging Markets Local Bond Fund and Multi-Asset Global Opportunity Fund’s investment objective is total return. Multi-Asset Global Opportunity Fund invests principally in other mutual funds (“Underlying Funds”) managed by Lord, Abbett & Co. LLC (“Lord Abbett”).

 

Each class of shares has different expenses and dividends. A front-end sales charge is normally added to the net asset value (“NAV”) for Class A shares. There is no front-end sales charge in the case of Class B, C, F, I, P R2 and R3 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 each Fund’s prospectus); Class B shares redeemed before the sixth anniversary of purchase; and Class C shares redeemed before the first anniversary of purchase. Class B shares will automatically convert to Class A shares on the 25th day of the month (or, if the 25th day is not a business day, the next business day thereafter) following the eighth anniversary of the day on which the purchase order was accepted. The Funds no longer issue Class B shares for purchase. Emerging Markets Currency Fund’s Class P shares are closed to substantially all new investors, with certain exceptions as set forth in the Funds’ prospectus. As of the date of this report, Multi-Asset Global Opportunity Fund has not issued Class P shares.

 

The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America 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.

 

82

Notes to Financial Statements (continued)

 

2.	SIGNIFICANT ACCOUNTING POLICIES

 

(a)	Investment Valuation – Under procedures approved by the Funds’ Board of Directors (the “Board”), Lord Abbett, the Funds’ 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 Funds 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. Each Fund may rely on 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. Fixed income securities are valued at the mean between the bid and asked prices on the basis of prices supplied by independent pricing services, which reflect broker/dealer supplied valuations and the independent pricing services’ own electronic data processing techniques. Floating rate loans are valued at the average of bid and ask quotations obtained from dealers in loans on the basis of prices supplied by independent pricing services. Exchange traded options and futures contracts are valued at the last 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. Forward foreign currency exchange contracts are valued using daily forward exchange rates. Swaps are valued daily using independent pricing services or quotations from broker/dealer to the extent available. Investments in the Underlying Funds are valued at their NAV each business day at the close of regular trading on the New York Stock Exchange, normally 4:00 p.m. Eastern time.
	Securities for which prices are not readily available are valued at fair value as determined by the Pricing Committee and approved by the Board. The Pricing Committee considers a number of factors, including observable and unobservable inputs, when arriving at fair value. The Pricing Committee may use observable inputs such as yield curves, broker quotes, observable trading activity, option adjusted spread models and other relevant information to determine fair value of portfolio investments. The Board or a designated committee thereof regularly reviews fair value determinations made by the Pricing Committee and employs 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.

 

83

Notes to Financial Statements (continued)

 

(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 and other income on the Statements of Operations. Investment income is allocated to each class of shares based upon the relative proportion of net assets at the beginning of the day. Withholding taxes on foreign dividends have been provided for in accordance with the applicable country’s tax rules and rates.

 

(d)	Income Taxes– It is the policy of each 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.

 

Each 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 each Fund’s filed U.S. federal tax returns remains open for the applicable fiscal periods ended December 31, 2010 through December 31, 2013. The statutes of limitations on each Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

 

(e)

Expenses – Expenses incurred by the Company that do not specifically relate to an individual fund are generally allocated to the Funds within the Company on a pro rata basis by relative net assets. 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 and R3 shares bear their class-specific share of all expenses and fees relating to the Funds’ 12b-1 Distribution Plan.

 

(f)

Foreign Transactions – The books and records of Emerging Markets Corporate Debt Fund, Emerging Markets Currency Fund and Emerging Markets Local Bond Fund are maintained in U.S. dollars and transactions denominated in foreign currencies are recorded in each 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 and any unrealized gain (loss) is included in Net change in unrealized appreciation/depreciation on investments, futures contracts, swaps and translation of assets and liabilities denominated in foreign currencies on each Fund’s Statement of Operations. The resultant exchange gains and losses upon settlement of such transactions are included in Net realized gain (loss) on investments, futures contracts, swaps and foreign currency related transactions on each Fund’s Statement of Operations. Each Fund does not 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.

 

The Funds use foreign currency exchange contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts’ terms.

 

(g)

Forward Foreign Currency Exchange Contracts – Emerging Markets Corporate Debt Fund, Emerging Markets Currency Fund and Emerging Markets Local Bond Fund may enter into forward foreign currency exchange contracts in order to reduce their exposure to changes in foreign currency exchange rates on their foreign portfolio holdings or gain or reduce exposure to foreign currency for investment purposes. A forward foreign currency exchange contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated rate. The contracts are valued daily at forward exchange rates and any unrealized gain (loss) is included

 

84

Notes to Financial Statements (continued)

 

in Net change in unrealized appreciation/depreciation on investments, futures contracts, swaps and translation of assets and liabilities denominated in foreign currencies on each Fund’s Statement of Operations. The gain (loss) arising from the difference between the U.S. dollar cost of the original contract and the value of the foreign currency in U.S. dollars upon closing of such contracts is included in Net realized gain (loss) on investments, futures contracts, swaps and foreign currency related transactions on each Fund’s Statement of Operations. As of December 31, 2013, Emerging Markets Currency Fund and Emerging Markets Local Bond Fund had open forward foreign currency exchange contracts.

 

(h)

Futures Contracts – Each Fund may purchase and sell futures contracts to enhance returns, to attempt to hedge some of its investment risk, to manage cash, or as a substitute position for 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. Each 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. As of December 31, 2013, only Emerging Markets Currency Fund had open futures contracts.

 

(i)

When-Issued, Forward Transactions or To-Be-Announced (“TBA”) Transactions – Emerging Markets Corporate Debt Fund, Emerging Markets Currency Fund and Emerging Markets Local Bond Fund may purchase portfolio securities on a when-issued or forward basis. When-issued, forward transactions or TBA transactions involve a commitment by a Fund to purchase securities, with payment and delivery (“settlement”) to take place in the future, in order to secure what is considered to be an advantageous price or yield at the time of entering into the transaction. During the period between purchase and settlement, the fair value of the securities will fluctuate and assets consisting of cash and/or marketable securities (normally short-term U.S. Government or U.S. Government sponsored enterprise securities) marked to market daily in an amount sufficient to make payment at settlement will be segregated at each Fund’s custodian in order to pay for the commitment. At the time each Fund makes the commitment to purchase a security on a when-issued basis, it will record the transaction and reflect the liability for the purchase and fair value of the security in determining its NAV. Each Fund, generally, has the ability to close out a purchase obligation on or before the settlement date rather than take delivery of the security. Under no circumstances will settlement for such securities take place more than 120 days after the purchase date.

 

(j)

Mortgage Dollar Rolls – Emerging Markets Corporate Debt Fund, Emerging Markets Currency Fund and Emerging Markets Local Bond Fund may enter into mortgage dollar rolls in which a Fund sells mortgage-backed securities for delivery in the current month and simultaneously contracts with the same counterparty to repurchase similar (same type, coupon and maturity) but not identical securities on a specified future date. During the roll period, the Fund loses the right to receive principal (including prepayments of principal) and interest paid on the securities sold.

 

(k)

Commercial Paper – Each Fund may purchase commercial paper. Commercial paper consists of unsecured promissory notes issued by corporations to finance short-term credit needs. Commercial paper is issued in bearer form with maturities generally not exceeding nine months. Commercial paper obligations may include variable amount master demand notes.

 

85

Notes to Financial Statements (continued)

 

(l)

Repurchase Agreements – Each 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. Each 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, a Fund may incur a loss upon disposition of the securities.

 

(m)

Interest Rate Swaps – Emerging Markets Corporate Debt Fund, Emerging Markets Currency Fund and Emerging Markets Local Bond Fund may invest in interest rate swaps in order to enhance returns or hedge against interest rate risk. Interest rate swaps are agreements in which one party pays a stream of interest payments, either fixed or floating, for another party’s stream of interest payments, either fixed or floating, on the same notional amount for a specified period of time. The interest rate swap agreement will normally be entered into on a zero coupon basis, meaning that the floating rate will be based on the cumulative of the variable rate, and the fixed rate will compound until the swap’s maturity date, at which point the payments would be netted. The swaps are valued daily and any unrealized gain (loss) is included in the Net change in unrealized appreciation/depreciation on investments, futures contracts, swaps and translation of assets and liabilities denominated in foreign currencies on each Fund’s Statement of Operations. A liquidation payment received or made at the termination or maturity of the swap is recorded in realized gain (loss) and is included in Net realized gain (loss) on investments, futures contracts, swaps and foreign currency related transactions on each Fund’s Statement of Operations. As of December 31, 2013, only Emerging Markets Currency Fund had an open interest rate swap. Daily changes in valuation of centrally cleared swaps, if any, are recorded as a receivable or payable for the change in value as appropriate (“variation margin”) on the Statements of Assets and Liabilities.

 

(n)

Credit Default Swaps – Emerging Markets Corporate Debt Fund, Emerging Markets Currency Fund and Emerging Markets Local Bond Fund may enter into credit default swap contracts in order to hedge credit risk or for speculation purposes. As a seller of a credit default swap contract (“seller of protection”), a Fund is required to pay the notional amount or other agreed-upon value of a referenced debt obligation to the counterparty in the event of a default by or other credit event involving the referenced issuer, obligation or index. In return, a Fund receives from the counterparty a periodic stream of payments over the term of the contract. As a purchaser of a credit default swap contract (“buyer of protection”), a Fund would receive the notional amount or other agreed upon value of a referenced debt obligation from the counterparty in the event of default by or other credit event involving the referenced issuer, obligation or index. In return, a Fund would make periodic payments to the counterparty over the term of the contracts, provided no event of default has occurred.

 

These credit default swaps may have as a reference obligation corporate or sovereign issuers or credit indices. These credit indices are comprised of a basket of securities representing a particular sector of the market. During the period, Emerging Markets Currency Fund entered into credit default swaps based on CMBX indices, which are comprised of commercial mortgage-backed securities.

 

86

Notes to Financial Statements (continued)

 

Credit default swaps are fair valued based upon quotations from counterparties, brokers or market-makers and the change in value, if any, is recorded as unrealized appreciation or depreciation. For a credit default swap sold by a Fund, payment of the agreed-upon amount made by a Fund in the event of default of the referenced debt obligation is recorded as the cost of the referenced debt obligation purchased/received. For a credit default swap purchased by a Fund, the agreed-upon amount received by a Fund in the event of default of the referenced debt obligation is recorded as proceeds from sale/delivery of the referenced debt obligation and the resulting gain or loss realized on the referenced debt obligation is recorded as such by a Fund.

 

Any upfront payments made or received upon entering a credit default swap contract would be amortized or accreted over the life of the swap and recorded as realized gains or losses. Collateral, in the form of cash or securities, may be required to be held in segregated accounts with the custodian bank or broker in accordance with the swap agreement. The value and credit rating of each credit default swap where a Fund is the seller of protection, are both measures of the current payment/performance risk of the swap. As the value of the swap changes as a positive or negative percentage of the total notional amount, the payment/performance risk may decrease or increase, respectively. The maximum potential amount of future payments (undiscounted) that a Fund as a seller of protection could be required to make under a credit default swap agreement would be an amount equal to the notional amount of the agreement. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by a Fund for the same referenced entity or entities.

 

Entering into credit default swaps involves credit and market risk. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreements, and that there may be unfavorable changes in interest rates, and that Lord Abbett does not correctly predict the creditworthiness of the issuers of the reference obligation on which the credit default swap is based.

 

(o)

Floating Rate Loans – Emerging Markets Corporate Debt Fund, Emerging Markets Currency Fund and Emerging Markets Local Bond Fund may invest in floating rate loans, which usually take the form of loan participations and assignments. Loan participations and assignments are agreements to make money available to U.S. or foreign corporations, partnerships or other business entities (the “Borrower”) in a specified amount, at a specified rate and within a specified time. A loan is typically originated, negotiated and structured by a U.S. or foreign bank, insurance company or other financial institution (the “Agent”) for a group of loan investors (“Loan Investors”). The Agent typically administers and enforces the loan on behalf of the other Loan Investors in the syndicate and may hold any collateral on behalf of the Loan Investors. Such loan participations and assignments are typically senior, secured and collateralized in nature. A Fund records an investment when the Borrower withdraws money and records interest as earned. These loans pay interest at rates which are periodically reset by reference to a base lending rate plus a spread. These base lending rates are generally the prime rate offered by a designated U.S. bank or London InterBank Offered Rate (“LIBOR”).

 

87

Notes to Financial Statements (continued)

 

The loans in which each Fund invests may be subject to some restrictions on resale. For example, each Fund may be contractually obligated to receive approval from the Agent and/or Borrower prior to the sale of these investments. Each Fund generally has no right to enforce compliance with the terms of the loan agreement with the Borrower. As a result, each Fund assumes the credit risk of the Borrower, the selling participant and any other persons interpositioned between each Fund and the Borrower (“Intermediate Participants”). In the event that the Borrower, selling participant or Intermediate Participants become insolvent or enter into bankruptcy, each Fund may incur certain costs and delays in realizing payment or may suffer a loss of principal and/or interest.

 

Unfunded commitments represent the remaining obligation of each Fund to the Borrower. At any point in time, up to the maturity date of the issue, the Borrower may demand the unfunded portion. Until demanded by the Borrower, unfunded commitments are not recognized as an asset on the Statements of Assets and Liabilities. Unrealized appreciation/ depreciation on unfunded commitments presented on the Statements of Assets and Liabilities represents mark to market of the unfunded portion of the Fund’s floating rate notes. As of December 31, 2013, each Fund had no unfunded loan commitments.

 

(p)

Fair Value Measurements – Fair value is defined as the price that each 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 of inputs 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 each Fund’s own assumptions in determining the fair value of investments).

 

A summary of inputs used in valuing each Fund’s investments and other financial instruments as of December 31, 2013 and, if applicable, Level 1/Level 2 transfers and Level 3 rollforwards for the fiscal year then ended is included in each Fund’s Schedule of Investments.

 

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.

 

88

Notes to Financial Statements (continued)

 

3.	MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES

 

Management Fee

The Company has a management agreement with Lord Abbett, pursuant to which Lord Abbett supplies each 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 each Fund’s investment portfolio.

 

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

 

Emerging Markets Corporate Debt Fund and Emerging Markets Local Bond Fund

 

First $2 billion			.70	%
Next $3 billion			.65	%
Over $5 billion			.60	%
Emerging Markets Currency Fund
First $1 billion			.50	%
Over $1 billion			.45	%

 

Multi-Asset Global Opportunity Fund .25%

 

For the fiscal year ended December 31, 2013, the effective management fee, net of waivers, was at the following annualized rate of each Fund’s average daily net assets:

 

		Effective
		Management Fee
Emerging Markets Corporate Debt Fund			.00%
Emerging Markets Currency Fund			.50%
Emerging Markets Local Bond Fund			.00%
Multi-Asset Global Opportunity Fund			.06%

 

For the period ended December 31, 2013 and continuing through April 30, 2015, Lord Abbett has contractually agreed to waive all or a portion of its management fee for Emerging Market Corporate Debt Fund and, if necessary, waive all or a portion of its administrative fee and reimburse the Fund’s other expenses to the extent necessary so that the total net annual operating expenses for each class, excluding 12b-1 fees, do not exceed an annual rate of 0.85%. This agreement may be terminated only upon the approval of the Board.

 

For the period ended December 31, 2013 and continuing through April 30, 2014, Lord Abbett has contractually agreed to waive all or a portion of its management fee for Emerging Market Local Bond Fund and, if necessary, waive all or a portion of its administrative fee and reimburse the Fund’s other expenses to the extent necessary so that the total net annual operating expenses for each class, excluding 12b-1 fees, do not exceed an annual rate of 0.85%. This agreement may be terminated only upon the approval of the Board. For the period June 24, 2014 through June 30, 2014, Lord Abbett voluntarily waived all expenses.

 

For the period from May 1, 2013 through April 30, 2014, Lord Abbett has contractually agreed to waive .18% of its annual management fee for Multi-Asset Global Opportunity Fund. This agreement may be terminated only upon approval of the Board. From January 1, 2013 through April 30, 2013, Lord Abbett had contractually agreed to waive .20% of its annual management fee for the Fund.

 

In addition, Lord Abbett provides certain administrative services to each Fund pursuant to an Administrative Services Agreement in return for a fee at an annual rate of .04% of Emerging

 

89

Notes to Financial Statements (continued)

 

Markets Corporate Debt Fund, Emerging Markets Currency Fund and Emerging Markets Local Bond Fund’s average daily net assets. Multi-Asset Global Opportunity Fund does not pay such fee.

 

Multi-Asset Global Opportunity Fund has entered into a Servicing Arrangement with the Underlying Funds in which it invests (Lord Abbett Affiliated Fund, Inc.; Lord Abbett Equity Trust—Lord Abbett Calibrated Large Cap Value Fund and Lord Abbett Calibrated Mid Cap Value Fund; Lord Abbett Global Fund, Inc. – Lord Abbett Emerging Markets Currency Fund; Lord Abbett Investment Trust – Lord Abbett High Yield Fund and Lord Abbett Short Duration Income Fund; Lord Abbett Municipal Income Fund, Inc. – High Yield Municipal Bond Fund; Lord Abbett Securities Trust—Lord Abbett International Dividend Income Fund and Lord Abbett Mid Cap Stock Fund, Inc.), pursuant to which each Underlying Fund will pay a portion of the expenses (excluding management fees and distribution and service fees) of Multi-Asset Global Opportunity Fund in proportion to the average daily value of total Underlying Fund shares owned by Multi-Asset Global Opportunity Fund. The expenses assumed by the Underlying Funds are reflected in Expenses assumed by Underlying Funds in Multi-Asset Global Opportunity Fund’s Statement of Operations and Receivables from affiliates on Multi-Asset Global Opportunity Fund’s Statement of Assets and Liabilities. Amounts paid pursuant to the Servicing Arrangement are included in Subsidy expense on Emerging Markets Currency Fund’s Statement of Operations and Payable to affiliates on Emerging Markets Currency Fund’s Statement of Assets and Liabilities.

 

As of December 31, 2013, the percentages of Emerging Markets Currency Fund’s outstanding shares owned by Lord Abbett Multi-Asset Balanced Opportunity Fund, Lord Abbett Multi-Asset Global Opportunity Fund and Lord Abbett Multi-Asset Income Fund were 34.37%, 9.47% and 26.92%, respectively.

 

12b-1 Distribution Plan

Each Fund has adopted a distribution plan with respect to Class A, B, C, F, P, R2 and R3 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 approved by the Board pursuant to the plan:

 

Fees*		Class A (1)			Class B (2)			Class C (3)			Class F		Class P (2)			Class R2			Class R3
Service		.15	%		.25	%		.25	%		—		.25	%		.25	%		.25	%
Distribution		.05	%		.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)	The Class A 12b-1 fees for Multi-Asset Global Opportunity Fund is .25% (.25% service, .00% distribution) of the Fund’s average daily net assets.
(2)	Emerging Markets Currency Fund and Multi-Asset Global Opportunity Fund only.
(3)	Except for Multi-Asset Global Opportunity Fund the Class C 12b-1 fee is a blended rate calculated based on 1.00% of the Fund’s average daily net assets attributable to Class C shares held for less than one year and .80% (.25% service, .55% distribution) of the Fund’s average daily net assets attributable to Class C shares held for one year or more. All Class C shareholders of the Fund will bear Rule 12b-1 fees at the same rate.

 

Class I shares do not have a distribution plan.

 

90

Notes to Financial Statements (continued)

 

Commissions

Distributor received the following commissions on sales of shares of the Funds, after concessions were paid to authorized dealers, for the fiscal year ended December 31, 2013:

 

		Distributor				Dealers’
		Commissions				Concessions
Emerging Markets Corporate Debt Fund*		$	—			$	—
Emerging Markets Currency Fund			4,910				34,658
Emerging Markets Local Bond Fund**			383				2,510
Multi-Asset Global Opportunity Fund			84,742				472,964

 

Distributor received the following amount of CDSCs for the fiscal year ended December 31, 2013:

 

		Class A				Class C
Emerging Markets Corporate Debt Fund*		$	—			$	—
Emerging Markets Currency Fund			7,376				6,467
Emerging Markets Local Bond Fund**			—				—
Multi-Asset Global Opportunity Fund			1,933				4,821

 

A Director and certain of the Company’s officers have an interest in Lord Abbett.

 

4.	DISTRIBUTIONS AND CAPITAL LOSS CARRYFORWARDS

 

Dividends from net investment income, if any, are declared daily and paid monthly for Emerging Markets Corporate Debt Fund, Emerging Markets Currency Fund and Emerging Markets Local Bond Fund and declared and paid quarterly for Multi-Asset Global Opportunity Fund. 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 fiscal years ended December 31, 2013 and 2012 was as follows:

 

		Emerging Markets												Emerging Markets
		Corporate Debt Fund												Currency Fund
		Period Ended									Year Ended				Year Ended
		12/31/2013*									12/31/2013				12/31/2012
Distributions paid from:
Ordinary income			$	15,144			$	—			$	6,786,193			$	9,800,565
Return of capital				—				—				5,149,859				1,503,690
Total distributions paid			$	15,144			$	—			$	11,936,052			$	11,304,255

 

*	For the period December 6, 2013 (commencement of operations) to December 31, 2013.

 

91

Notes to Financial Statements (continued)

 

		Emerging Markets												Multi–Asset Global
		Local Bond Fund												Opportunity Fund
		Period Ended									Year Ended			Year Ended
		12/31/2013**									12/31/2013				12/31/2012
Distributions paid from:
Ordinary income			$	229,563			$	—			$	7,855,560			$	5,927,793
Tax-exempt income				—				—				38,049				—
Net long-term capital gains				—				—				1,939,046				—
Return of capital				—				—				—				99,560
Total distributions paid			$	229,563			$	—			$	9,832,655			$	6,027,353

 

**	For the period June 21, 2013 (commencement of operations) to December 31, 2013.

 

As of December 31, 2013, the components of accumulated gains (losses) on a tax-basis were as follows:

 

		Emerging Markets					Emerging Markets
		Corporate Debt Fund					Currency Fund
Undistributed ordinary income – net			$	2,701				$	—
Total undistributed earnings				2,701					—
Capital loss carryforwards*				—					(15,857,309	)
Temporary differences				—					(1,903,398	)
Unrealized losses – net				(22,598	)				(7,337,794	)
Total accumulated losses – net			$	(19,897	)			$	(25,098,501	)
		Emerging Markets					Multi-Asset Global
		Local Bond Fund					Opportunity Fund
Undistributed ordinary income – net			$	299				$	—
Undistributed long-term capital gains				—					551,270
Total undistributed earnings				299					551,270
Capital loss carryforwards*				(6,934	)				—
Temporary differences				(19,384	)				(38,839	)
Unrealized gains/(losses) – net				(260,666	)				17,071,589
Total accumulated gains/(losses) – net			$	(286,685	)			$	17,584,020

 

*	As of December 31, 2013, the capital loss carryforwards, along with the related expiration dates, were as follows:

 

		Indefinite					Total
Emerging Markets Currency Fund			$	15,857,309				$	15,857,309
Emerging Markets Local Bond Fund				6,934					6,934

 

In accordance with the Regulated Investment Company Modernization Act of 2010, each Fund will carryforward capital losses incurred in taxable years beginning after December 22, 2010 (“post-enactment losses”) indefinitely. Post-enactment losses will also retain their character as either short-term or long-term.

 

92

Notes to Financial Statements (continued)

 

At each Fund’s election, certain losses incurred within the taxable year (Qualified Late-Year Losses) are deemed to arise on the first business day of the Fund’s next taxable year. The Funds incurred and will elect to defer late-year losses for 2013 as follows.

 

		Late-Year Ordinary				Post-October Capital Losses
Emerging Markets Currency Fund			$	949,951				$	—
Emerging Markets Local Bond Fund				3,541					15,692

 

As of December 31, 2013, the aggregate unrealized security gains and losses based on cost for U.S. federal income tax purposes were as follows:

 

		Emerging Markets					Emerging Markets
		Corporate Debt Fund					Currency Fund
Tax cost			$	10,831,280				$	384,981,432
Gross unrealized gain			$	19,910				$	1,471,599
Gross unrealized loss				(42,508	)				(6,035,505	)
Net unrealized security loss			$	(22,598	)			$	(4,563,906	)
		Emerging Markets					Multi-Asset Global
		Local Bond Fund					Opportunity Fund
Tax cost			$	7,615,304				$	210,658,429
Gross unrealized gain				98,523					19,033,448
Gross unrealized loss				(350,758	)				(1,961,784	)
Net unrealized security gain (loss)			$	(252,235	)			$	17,071,664

 

The difference between book-basis and tax-basis unrealized gains (losses) is attributable to the tax treatment of certain distributions received, wash sales and amortization of premium.

 

Permanent items identified during the fiscal year ended December 31, 2013 have been reclassified among the components of net assets based on their tax basis treatment as follows:

 

		Undistributed
		(Distributions in					Accumulated
		Excess of) Net					Net Realized					Paid-in
		Investment Income					Loss					Capital
Emerging Markets Corporate Debt Fund*			$	3,520				$	(2,846	)			$	(674	)
Emerging Markets Currency Fund				1,393,986					(1,393,986	)				—
Emerging Markets Local Bond Fund**				46,603					(42,134	)				(4,469	)
Multi-Asset Global Opportunity Fund				2,193,718					(2,193,718	)				—

 

*		For the period December 6, 2013 (commencement of operations) to December 31, 2013.
**		For the period June 21, 2013 (commencement of operations) to December 31, 2013.

 

The permanent differences are attributable to the tax treatment of foreign currency transactions, certain securities, certain expenses, premium amortization, certain distributions, and principal paydown gains and losses.

 

93

Notes to Financial Statements (continued)

 

5.	PORTFOLIO SECURITIES TRANSACTIONS

 

Purchases and sales of investment securities (excluding short-term investments) for the fiscal year ended December 31, 2013 were as follows:

 

		U.S.				Non-U.S.				U.S.				Non-U.S.
		Government				Government				Government				Government
		Purchases*				Purchases				Sales*				Sales
Emerging Markets Corporate Debt Fund**		$	—			$	9,933,051			$	—			$	393,750
Emerging Markets Currency Fund			75,179,493				298,623,213				74,393,495				295,635,653
Emerging Markets Local Bond Fund***			—				8,901,019				—				1,775,058
Multi-Asset Global Opportunity Fund			—				78,492,563				—				46,472,697

 

*		Includes U.S. Government sponsored enterprises securities.
**		For the period December 6, 2013 (commencement of operations) to December 31, 2013.
***		For the period June 21, 2013 (commencement of operations) to December 31, 2013.

 

6.	DISCLOSURES ABOUT DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

 

Emerging Markets Currency Fund and Emerging Markets Local Bond Fund entered into forward foreign currency exchange contracts for the fiscal year ended December 31, 2013 (as described in note 2(g)). A forward foreign currency exchange contract reduces each Fund’s exposure to changes in the value of the currency it will deliver (or settle in cash) and increases its exposure to changes in the value of the currency it will receive (or settle in cash) for the duration of the contract. Each Fund’s use of forward foreign currency exchange contracts involves the risk that Lord Abbett will not accurately predict currency movements, and each Fund’s returns could be reduced as a result. Forward foreign currency exchange contracts 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 relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time. Each Fund’s risk of loss from counterparty credit risk is the unrealized appreciation on foreign currency exchange contracts and deposits as collateral.

 

Emerging Markets Currency Fund entered into U.S. Treasury futures contracts for the fiscal year ended December 31, 2013 (as described in note 2(h)) to hedge against changes in interest rates. The Fund bears the risk of interest rates moving unexpectedly, in which case the Fund may not achieve the anticipated benefits of the futures contracts and 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.

 

Emerging Markets Currency Fund entered into credit default swaps for the fiscal year ended December 31, 2013 (as described in note 2(n)) for investment purposes to hedge credit risk or for speculative purposes. Credit default swaps involve the exchange of a fixed rate premium for protection against the loss in value of an underlying security in the event of a defined credit event, such as payment default or bankruptcy. Under a credit default swap one party acts as a guarantor by receiving the fixed periodic payment in exchange for the commitment to purchase the underlying security at par if the defined credit event occurs. Upon the occurrence of a defined credit event, the difference between the value of the reference obligation and the swap’s notional amount is recorded as realized gain or loss on swap transactions in the Statements of Operations. The Fund’s maximum risk of loss from counterparty risk, either as the protection seller or as the protection buyer, is the fair value of the contract.

 

94

Notes to Financial Statements (continued)

 

Emerging Markets Currency Fund entered into interest rate swaps for the fiscal year ended December 31, 2013 (as described in note 2(m)) to hedge against interest rate risk. The Fund’s use of interest rate swaps involves the risk that Lord Abbett will not accurately predict expectations of interest rates, and the Fund’s returns could be reduced as a result. There is minimal counterparty credit risk to the Fund since interest rate swaps are traded through a central clearinghouse. As the counterparty to all centrally cleared interest rate swaps, the clearinghouse guarantees interest rate swaps against default.

 

As of December 31, 2013, each Fund had the following derivatives, grouped into appropriate risk categories that illustrate how and why the Fund uses derivative instruments:

 

											Emerging Markets Currency Fund
							Forward Foreign
							Currency
		Interest Rate					Exchange					Credit
Asset Derivatives		Contracts					Contracts					Contracts				Fair Value
Credit Default Swaps (1)			$	—				$	—				$	92,800			$	92,800
Forward Foreign Currency
Exchange Contracts (2)				—					4,416,540					—				4,416,540
Futures Contracts (3)				857,211					—					—				857,211
Total			$	857,211				$	4,416,540				$	92,800			$	5,366,551
Liability Derivatives
Forward Foreign Currency
Exchange Contracts (5)			$	—				$	5,654,444				$	—			$	5,654,444
Interest Rate Swaps (4)				49,774					—					—				49,774
Total			$	49,774				$	5,654,444				$	—			$	5,704,218
		Emerging Markets Local Bond Fund
		Forward Foreign
		Currency
		Exchange
Asset Derivatives		Contracts					Fair Value
Forward Foreign Currency
Exchange Contracts (2)			$	20,363				$	20,363
Total			$	20,363				$	20,363
Liability Derivatives
Forward Foreign Currency
Exchange Contracts (5)			$	44,572				$	44,572
Total			$	44,572				$	44,572

 

(1)	Statements of Assets and Liabilities location: Unrealized appreciation on credit default swaps.

(2)	Statements of Assets and Liabilities location: Unrealized appreciation on forward foreign currency exchange contracts.

(3)	Statements of Assets and Liabilities location: Includes cumulative unrealized appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.

(4)	Statements of Assets and Liabilities location: Includes cumulative unrealized appreciation/depreciation of Interest Rate Swaps, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.

(5)	Statements of Assets and Liabilities location: Unrealized depreciation on forward foreign currency exchange contracts.

 

95

Notes to Financial Statements (continued)

 

Transactions in derivative instruments for the fiscal year ended December 31, 2013, were as follows:

 

											Emerging Markets Currency Fund
							Forward Foreign
							Currency
		Interest Rate					Exchange				Credit
		Contracts					Contracts				Contracts					Total
Net Realized Gain (Loss) (1)
Credit Default Swaps			$	—				$	—				$	153,397				$	153,397
Forward Foreign Currency Exchange Contracts				—					(5,361,173	)				—					(5,361,173	)
Futures Contracts				446,318					—					—					446,318
Interest Rate Swaps				(23,585	)				—					—					(23,585	)
Net Change in Unrealized
Appreciation/Depreciation (2)
Credit Default Swaps			$	—				$	—				$	(45,353	)			$	(45,353	)
Forward Foreign Currency Exchange Contracts				—					(6,132,072	)				—					(6,132,072	)
Futures Contracts				738,748					—					—					738,748
Interest Rate Swaps				(17,960	)				—					—					(17,960	)
Average Number of Contracts/Notional Amounts*
Credit Default Swaps (3)			$	—				$	—				$	4,100,000				$	4,100,000
Forward Foreign Currency Exchange Contracts (3)				—					655,281,692					—					655,281,692
Futures Contracts (4)				948					—					—					948
Interest Rate Swaps (3)				11,615,385					—					—					11,615,385

 

		Emerging Markets Local Bond Fund
		Forward Foreign
		Currency
		Exchange
		Contracts					Total
Net Realized Loss (1)
Forward Foreign Currency Exchange Contracts			$	(20,421	)			$	(20,421	)
Net Change in Unrealized
Appreciation/Depreciation (2)
Forward Foreign Currency Exchange Contracts			$	(24,209	)			$	(24,209	)
Average Number of Contracts/Notional Amounts*
Forward Foreign Currency Exchange Contracts (3)			$	2,066,066				$	2,066,066

 

*	Calculated based on the number of contracts or notional amounts for the period ended December 31, 2013.
(1)	Statement of Operations location: Net realized gain (loss) on investments, futures contracts, swaps and foreign currency related transactions.
(2)	Statement of Operations location: Net change in unrealized appreciation/depreciation on investments, futures contracts, swaps and translation of assets and liabilities denominated in foreign currencies.
(3)	Amount represents notional amount in U.S. dollars.
(4)	Amount represents number of contracts.

 

7.	DISCLOSURES ABOUT OFFSETTING ASSETS AND LIABILITIES

 

The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2011–11 “Disclosures about Offsetting Assets and Liabilities” (“ASU 2011–11”). These disclosure

 

96

Notes to Financial Statements (continued)

 

requirements are intended to help better assess the effect or potential effect of offsetting arrangements on a fund’s financial position. In addition, FASB issued Accounting Standards Update No. 2013–01 “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities” (“ASU 2013–01”), specifying which transactions are subject to disclosures about offsetting.

 

The following tables illustrate Emerging Markets Corporate Debt Fund’s, Emerging Markets Currency Fund’s and Emerging Markets Local Bond Fund’s gross and net information about recognized assets eligible for offset in the Statements 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 a 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 single payment by one party to the other in the event of default on or termination of any one contract. The Funds’ 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 Funds and the applicable counterparty:

 

Emerging Markets Corporate Debt Fund

Net Amounts

Gross Amounts

of Assets

Gross

Offset in the

Presented in

Amounts of

Statement

the Statement

Recognized

of Assets

of Assets and

Description

Assets

and Liabilities

Liabilities

Repurchase Agreement

$1,288,787

$         —

$1,288,787

Total

$1,288,787

$         —

$1,288,787

Net Amounts

of Assets

Amounts Not Offset in the

Presented in

Statement of Assets and Liabilities

the Statement

Financial

of Assets and

Instruments

Cash Collateral

Counterparty

Liabilities

Collateral (a)

Received (a)

Net Amount (b)

Fixed Income Clearing Corp.

$1,288,787

$(1,288,787

)

$         —

$         —

Total

$1,288,787

$(1,288,787

)

$         —

$         —

 

(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 that is subject to loss in the event of a counterparty failure as of December 31, 2013.

 

Emerging Markets Currency Fund

Net Amounts

Gross Amounts

of Assets

Gross

Offset in the

Presented in

Amounts of

Statement

the Statement

Recognized

of Assets

of Assets and

Description

Assets

and Liabilities

Liabilities

Forward Foreign Currency Exchange Contracts

$

4,416,540

$        —

$

4,416,540

Credit Default Swaps

92,800

—

92,800

Total

$

4,509,340

$        —

$

4,509,340

 

97

Notes to Financial Statements (continued)

 

							Amounts Not Offset in the
		Net Amounts					Statement of Assets and Liabilities
		of Assets										Financial
		Presented in										Instruments
		the Statement										Collateral
		of Assets and					Financial					Received
Counterparty		Liabilities					Instruments					at Fair Value (a)					Net Amount (b)
Barclays Bank plc			$	912,154				$	(912,154	)			$	—				$	—
Credit Suisse				114,800					(13,271	)				—					101,529
Goldman Sachs				812,837					(812,837	)				—					—
J.P. Morgan				1,800,534					(1,800,534	)				—					—
Morgan Stanley				340,973					(15,580	)				(101,300	)				224,093
UBS AG				528,042					(341,578	)				—					186,464
Total			$	4,509,340				$	(3,895,954	)			$	(101,300	)			$	512,086
							Emerging Markets Currency Fund
												Net Amounts
							Gross Amounts					of Liabilities
		Gross					Offset in the					Presented in
		Amounts of					Statement					the Statement
		Recognized					of Assets					of Assets and
Description		Liabilities					and Liabilities					Liabilities
Forward Foreign Currency Exchange Contracts			$	5,654,444				$	—				$	5,654,444
Total			$	5,654,444				$	—				$	5,654,444
		Net Amounts
		of Liabilities
		Presented in					Amounts Not Offset in the
		the Statement					Statement of Assets and Liabilities
		of Assets and					Financial					Cash Collateral
Counterparty		Liabilities					Instruments					Pledged (a)					Net Amount (c)
Barclays Bank plc			$	1,216,557				$	(912,154	)			$	(304,403	)			$	—
Credit Suisse				13,271					(13,271	)				—					—
Deutsche Bank				204,756					—					—					204,756
Goldman Sachs				1,439,365					(812,837	)				(510,000	)				116,528
J.P. Morgan				2,423,337					(1,800,534	)				(622,803	)				—
Morgan Stanley				15,580					(15,580	)				—					—
UBS AG				341,578					(341,578	)				—					—
Total			$	5,654,444				$	(3,895,954	)			$	(1,437,206	)			$	321,284

 

(a)	Collateral disclosed is limited to an amount not to exceed 100% of the net amount of assets presented in the Statements of Assets and Liabilities, for each respective counterparty.

(b)	Net Amount represents the amount that is subject to loss in the event of a counterparty failure as of December 31, 2013.

(c)	Net Amount represents amounts owed by the Fund to each counterparty as of December 31, 2013.

 

98

Notes to Financial Statements (continued)

 

		Emerging Markets Local Bond Fund
												Net Amounts
							Gross Amounts					of Assets
		Gross					Offset in the					Presented in
		Amounts of					Statement					the Statement
		Recognized					of Assets					of Assets and
Description		Assets					and Liabilities					Liabilities
Forward Foreign Currency Exchange Contracts			$	20,363				$	—				$	20,363
Total			$	20,363				$	—				$	20,363
		Net Amounts
		of Assets
		Presented in					Amounts Not Offset in the
		the Statement					Statement of Assets and Liabilities
		of Assets and					Financial						Cash Collateral
Counterparty		Liabilities					Instruments						Received (a)				Net Amount (b)
Credit Suisse			$	238				$	(153	)			$	—				$	85
Deutsche Bank				13,370					(10,241	)				—					3,129
Goldman Sachs				4,866					(4,866	)				—					—
Morgan Stanley				1,889					(1,889	)				—					—
Total			$	20,363				$	(17,149	)			$	—				$	3,214
		Emerging Markets Local Bond Fund
												Net Amounts
							Gross Amounts					of Liabilities
		Gross					Offset in the					Presented in
		Amounts of					Statement					the Statement
		Recognized					of Assets					of Assets and
Description		Liabilities					and Liabilities					Liabilities
Forward Foreign Currency Exchange Contracts			$	44,572				$	—				$	44,572
Total			$	44,572				$	—				$	44,572
		Net Amounts
		of Liabilities
		Presented in					Amounts Not Offset in the
		the Statement					Statement of Assets and Liabilities
		of Assets and					Financial					Cash Collateral
Counterparty		Liabilities					Instruments					Pledged (a)					Net Amount (c)
Credit Suisse			$	153				$	(153	)			$	—				$	—
Deutsche Bank				10,241					(10,241	)				—					—
Goldman Sachs				10,905					(4,866	)				—					6,039
Morgan Stanley				23,273					(1,889	)				—					21,384
Total			$	44,572				$	(17,149	)			$	—				$	27,423

 

(a)	Collateral disclosed is limited to an amount not to exceed 100% of the net amount of assets presented in the Statements of Assets and Liabilities, for each respective counterparty.

(b)	Net Amount represents the amount that is subject to loss in the event of a counterparty failure as of December 31, 2013.

(c)	Net Amount represents amounts owed by the Fund to each counterparty as of December 31, 2013.

 

99

Notes to Financial Statements (continued)

 

8.	DIRECTORS’ REMUNERATION

 

The Company’s officers and a Director, who are associated with Lord Abbett, do not receive any compensation from the Company 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 Statements of Operations and in Directors’ fees payable on the Statements of Assets and Liabilities and are not deductible for U.S. federal income tax purposes until such amounts are paid.

 

9.	EXPENSE REDUCTIONS

 

The Company 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 each Fund’s expenses.

 

10.	LINE OF CREDIT

 

During the fiscal year ended December 31, 2013, Emerging Markets Currency Fund and Emerging Markets Local Bond Fund and certain other funds managed by Lord Abbett (the “participating funds”) participated in an unsecured revolving credit facility (“Facility”) with State Street Bank and Trust Company (“SSB”). The Facility is to be used for temporary or emergency purposes as an additional source of liquidity to fund redemptions of investor shares. The Board considers annual renewal of the Facility under terms that depend on market conditions at the time of the renewal. The amounts available under the Facility are (i) the lesser of either $250,000,000 or 33.33% of total assets per participating fund and (ii) $350,000,000 in the aggregate for all participating funds. The annual fee to maintain the Facility is .09% of the amount available under the Facility. Each participating fund pays its pro rata share based on the net assets of each participating fund. This amount is included in Other expenses on each Fund’s Statement of Operations. Any borrowings under this Facility will bear interest at current market rates as set forth in the credit agreement.

 

Effective July 1, 2013, the Funds and participating funds renewed the Facility through June 30, 2014 under the same terms as described above.

 

During the fiscal year ended December 31, 2013, a participating fund also managed by Lord Abbett utilized the Facility and fully repaid its borrowings on June 13, 2013. As of December 31, 2013, there were no loans outstanding pursuant to this Facility.

 

11.	CUSTODIAN AND ACCOUNTING AGENT

 

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

 

100

Notes to Financial Statements (continued)

 

12.	TRANSACTIONS WITH AFFILIATED ISSUERS

 

An affiliated issuer is one in which a Fund has ownership of at least 5% of the outstanding voting securities of the underlying issuer at any point during the fiscal year or any company which is under common ownership or control. Multi-Asset Global Opportunity Fund had the following transactions with affiliated issuers (i.e. the Underlying Funds) for the fiscal year ended December 31, 2013:

 

		Balance												Balance								Net Realized				Dividend
		of Shares												of Shares								Gain (Loss)				Income
		Held at				Gross				Gross				Held at				Fair Value at				1/1/2013 to				1/1/2013 to
Affiliated Issuer		12/31/2012				Additions				Sales				12/31/2013				12/31/2013				12/31/2013				12/31/2013
Lord Abbett Affiliated Fund, Inc. – Class I			142,096				418,705				(290,032	)			270,769			$	4,229,409			$	300,539			$	47,327
Lord Abbett Equity Trust – Calibrated Large Cap Value Fund – Class I			50,689				4,395				—				55,084				1,177,686				74,832	(a)			17,107
Lord Abbett Equity Trust – Calibrated Mid Cap Value Fund – Class I			666,452				566,203				—				1,232,655				25,565,265				2,125,435	(a)			295,905
Lord Abbett Global Fund, Inc. – Emerging Markets Currency Fund – Class I			5,082,070				2,059,425				(1,106,310	)			6,035,185				37,659,554				(346,955	)			1,046,472
Lord Abbett Investment Trust – High Yield Fund – Class I			2,406,133				895,200				(377,657	)			2,923,676				22,921,619				1,066,139	(b)			1,462,506
Lord Abbett Municipal Income Fund, Inc. – High Yield Municipal Bond Fund – Class I			—				452,119				—				452,119				4,869,320				—				39,513
Lord Abbett Securities Trust – International Dividend Income Fund – Class I			9,353,041				2,099,868				(1,568,789	)			9,884,120				89,648,973				(1,180,116	)			3,745,164
Lord Abbett Mid Cap Stock Fund, Inc. – Class I			1,907,046				187,987				(664,679	)			1,430,354				33,069,777				3,059,781				232,872
Lord Abbett Investment Trust – Short Duration Income Fund – Class I			—				2,906,782				(1,019,202	)			1,887,580				8,588,490				(71,016	) (c)			125,149
Total																		$	227,730,093			$	5,028,639			$	7,012,015

 

(a)	Amount represents distributed capital gains.
(b)	Includes $787,456 of distributed capital gains.
(c)	Includes $6,896 of distributed capital gains.

 

13.	INVESTMENT RISKS

 

Each Fund is subject to the risks of investing in securities that are issued by non-U.S. entities, the risks of investing in derivatives, liquidity risk, and the risks from leverage.

 

Foreign securities may pose greater risks than domestic securities, including greater price fluctuations, less government regulation, and higher transaction costs. These risks generally are

 

101

Notes to Financial Statements (continued)

 

greater for emerging markets securities. Foreign investments also may be affected by changes in currency rates or currency controls.

 

Derivatives are subject to risks such as liquidity risk, leveraging risk, interest rate risk, market risk, and credit risk. Derivatives also involve the risk of mispricing or improper valuation and the risk that changes in the value of the derivative may not correlate perfectly with the value of the underlying asset, rate, or index. Whether a Fund’s use of derivatives is successful will depend on, among other things, the Fund’s ability to correctly forecast market movements, changes in foreign exchange and interest rates, and other factors. If a Fund incorrectly forecasts these and other factors, its performance could suffer. The Fund’s use of derivatives could result in a loss exceeding the amount of the Fund’s investment in these instruments.

 

Emerging Markets Currency Fund and Emerging Markets Local Bond Fund are non-diversified, which means that they each may invest a greater portion of their assets in a single issuer than a diversified fund. Thus, they may be exposed to greater risk.

 

Each Fund may invest in swap contracts. Swap contracts are bilateral agreements between a fund and its counterparty. Each party is exposed to the risk of default by the other. In addition, swap contracts may involve a small investment of cash compared to the risk assumed, with the result that small changes may produce disproportionate and substantial gains or losses to a Fund.

 

Each Fund may invest in credit default swap and interest rate swap contracts. Such contracts are subject to the risk that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreements. Credit default swaps are subject to the risk and that Lord Abbett does not correctly predict the creditworthiness of the issuers of the reference obligation on which the swap is based. Interest rate swaps are subject to the risk that Lord Abbett does not correctly anticipate changes in interest rates.

 

Illiquid securities may lower a Fund’s returns since it may be unable to sell these securities at its desired time or price. To the extent illiquid securities can be sold, a Fund may have to do so at disadvantageous prices in order to meet requests for the redemption of Fund shares.

 

Leverage, including borrowing, may increase volatility in a Fund by magnifying the effect of changes in the value of each Fund’s holdings. The use of leverage may cause investors in a Fund to lose more money in adverse environments than would be the case in the absence of leverage.

 

Each Fund is subject to the general risks and considerations associated with investing in debt securities, including interest rate risk. When interest rates rise, the prices of debt securities and an investment in a Fund are likely to decline. In times of economic uncertainty, high-yield debt securities (or “junk bonds”) may decline in price, even when interest rates are falling. There is also the risk that an issuer of a debt security will fail to make timely payments of principal or interest to a Fund, a risk that is greater with junk bonds.

 

The mortgage-related securities in which a Fund may invest may be particularly sensitive to changes in prevailing interest rates, economic conditions, including delinquencies and/or defaults. These changes can affect the value, income and/or liquidity of such positions. When interest rates are declining, the value of these securities with prepayment features may not increase as much as other fixed income securities. Early principal repayment may deprive a Fund of income payments above current market rates. Alternatively, rising interest rates may cause payments to occur at a slower-than-expected rate, extending the duration of a security and typically reducing its value. The payment rate will thus affect the price and volatility of a mortgage-related security.

 

102

Notes to Financial Statements (continued)

 

Foreign currency exchange rates may fluctuate significantly over short periods of time. Emerging Markets Corporate Debt Fund, Emerging Markets Currency Fund and Emerging Markets Local Bond Fund’s use of currency-related transactions involves the risk that Lord Abbett will not accurately predict currency movements, and each Fund’s returns could be reduced as a result. A decline in the value of foreign currencies relative to the U.S. dollar will reduce the value of securities held by Emerging Markets Corporate Debt Fund, Emerging Markets Currency Fund and Emerging Markets Local Bond Fund that are denominated in those currencies.

 

The securities markets of developing or emerging countries tend to be less liquid, are especially subject to greater price volatility, have a smaller market capitalization, have less government regulation and may not be subject to as extensive and frequent accounting, financial, and other reporting requirements as securities issued in more developed countries.

 

Bonds issued or guaranteed by foreign governments and governmental entities (commonly referred to as “sovereign debt”) are subject to the risk that such governments or entities are unable or unwilling to make interest payments and/or repay the principal owed. Emerging Markets Local Bond Fund may have limited recourse in such instances.

 

Emerging Markets Corporate Debt Fund, Emerging Markets Currency Fund and Emerging Markets Local Bond Fund believe that their investment strategies with respect to foreign currencies will generate qualifying income under current U.S. federal income tax law. However, there can be no assurance that the U.S. Treasury Department will not issue regulations in the future (possibly with retroactive effect) that would treat some or all of each Fund’s foreign currency gains as nonqualifying income.

 

The value of Multi-Asset Global Opportunity Fund’s investments will fluctuate in response to various factors related to domestic and foreign equity and fixed income markets, as well as the financial condition and prospects of issuers in which the Fund invests through its Underlying Funds. Because equity and fixed income investments can move in different directions or to different degrees, fixed income investments may counteract some of the volatility experienced by equity holdings, but the diminished risk that may accompany this investment approach also may result in lower returns.

 

These factors can affect each Fund’s performance.

 

14.	SUMMARY OF CAPITAL TRANSACTIONS

 

Transactions in shares of capital stock were as follows:

 

		Period Ended
Emerging Markets Corporate Debt Fund		December 31, 2013 †
Class A Shares		Shares				Amount
Shares sold			322,470				$4,837,000
Reinvestment of distributions			503				7,530
Increase			322,973				$4,844,530

 

103

Notes to Financial Statements (continued)

 

		Period Ended
Emerging Markets Corporate Debt Fund		December 31, 2013 †
Class C Shares		Shares				Amount
Shares sold			6,667				$	100,000
Reinvestment of distributions			7					113
Increase			6,674				$	100,113
Class F Shares
Shares sold			6,666				$	100,000
Reinvestment of distributions			11					162
Increase			6,677				$	100,162
Class I Shares
Shares sold			320,000				$	4,800,000
Reinvestment of distributions			537					8,038
Increase			320,537				$	4,808,038
Class R2 Shares
Shares sold			6,667				$	100,000
Reinvestment of distributions			11					167
Increase			6,678				$	100,167
Class R3 Shares
Shares sold			6,667				$	100,000
Reinvestment of distributions			11					167
Increase			6,678				$	100,167

†

For the period December 6, 2013 (commencement of operations) to December 31, 2013.

 

		Year Ended									Year Ended
Emerging Markets Currency Fund		December 31, 2013									December 31, 2012
Class A Shares		Shares					Amount				Shares					Amount
Shares sold			2,857,721				$	18,815,750				3,757,643				$	24,345,954
Converted from Class B*			26,630					171,944				24,737					159,490
Reinvestment of distributions			245,120					1,571,783				289,200					1,872,926
Shares reacquired			(6,616,666	)				(42,303,099	)			(5,926,704	)				(38,303,761	)
Decrease			(3,487,195	)			$	(21,743,622	)			(1,855,124	)			$	(11,925,391	)
Class B Shares
Shares sold			2,681				$	17,521				10,818				$	68,868
Reinvestment of distributions			2,434					15,693				3,704					24,089
Shares reacquired			(50,905	)				(328,294	)			(77,789	)				(499,593	)
Converted to Class A*			(26,509	)				(171,944	)			(24,626	)				(159,490	)
Decrease			(72,299	)			$	(467,024	)			(87,893	)			$	(566,126	)
Class C Shares
Shares sold			509,614				$	3,377,528				785,246				$	5,102,670
Reinvestment of distributions			47,887					308,679				62,054					404,207
Shares reacquired			(2,076,141	)				(13,335,387	)			(2,474,000	)				(16,060,369	)
Decrease			(1,518,640	)			$	(9,649,180	)			(1,626,700	)			$	(10,553,492	)

 

104

Notes to Financial Statements (continued)

 

		Year Ended									Year Ended
Emerging Markets Currency Fund		December 31, 2013									December 31, 2012
Class F Shares		Shares					Amount				Shares					Amount
Shares sold			4,509,167				$	29,402,823				4,840,724				$	31,183,175
Reinvestment of distributions			161,291					1,033,696				219,054					1,417,322
Shares reacquired			(9,694,342	)				(62,037,420	)			(6,740,611	)				(43,176,965	)
Decrease			(5,023,884	)			$	(31,600,901	)			(1,680,833	)			$	(10,576,468	)
Class I Shares
Shares sold			19,633,853				$	124,986,620				23,966,025				$	155,303,285
Reinvestment of distributions			1,266,389					8,070,289				994,229					6,428,608
Shares reacquired			(14,683,234	)				(93,725,175	)			(3,315,979	)				(21,233,561	)
Increase			6,217,008				$	39,331,734				21,644,275				$	140,498,332
Class P Shares
Shares sold			1				$	5				—				$	—
Reinvestment of distributions			36					233				35					233
Shares reacquired			(293	)				(1,842	)			—	(a)				(3	)
Increase (decrease)			(256	)			$	(1,604	)			35				$	230
Class R2 Shares
Shares sold			13,429				$	86,850				51,280				$	325,886
Reinvestment of distributions			37					232				32					206
Shares reacquired			(19,051	)				(125,707	)			(41,598	)				(271,613	)
Increase (decrease)			(5,585	)			$	(38,625	)			9,714				$	54,479
Class R3 Shares
Shares sold			51,060				$	329,864				62,494				$	404,137
Reinvestment of distributions			1,785					11,398				1,771					11,450
Shares reacquired			(66,849	)				(436,271	)			(38,015	)				(246,426	)
Increase (decrease)			(14,004	)			$	(95,009	)			26,250				$	169,161

*	Automatic conversion of Class B shares occurs on the 25 th day of the month (or, if the 25 th day is not a business day, the next business day thereafter) following the eighth anniversary of the day on which the purchase order was accepted.
(a)	Value is less than 1 share.

 

		Period Ended
Emerging Markets Local Bond Fund		December 31, 2013 †
Class A Shares		Shares				Amount
Shares sold			395,448			$	5,899,956
Reinvestment of distributions			10,700				157,097
Shares reacquired			(62,062	)			(933,005	)
Increase			344,086			$	5,124,048
Class C Shares
Shares sold			15,415			$	229,822
Reinvestment of distributions			350				5,128
Shares reacquired			(76	)			(1,109	)
Increase			15,689			$	233,841

 

105

Notes to Financial Statements (continued)

 

		Period Ended
Emerging Markets Local Bond Fund		December 31, 2013 †
Class F Shares		Shares				Amount
Shares sold			7,857			$	118,003
Reinvestment of distributions			247				3,626
Shares reacquired			(6	)			(92	)
Increase			8,098			$	121,537
Class I Shares
Shares sold			153,333			$	2,300,000
Reinvestment of distributions			5,604				82,316
Increase			158,937			$	2,382,316
Class R2 Shares
Shares sold			6,667			$	100,000
Reinvestment of distributions			223				3,278
Increase			6,890			$	103,278
Class R3 Shares
Shares sold			6,667			$	100,000
Reinvestment of distributions			227				3,330
Increase			6,894			$	103,330

†

For the period June 21, 2013 (commencement of operations) to December 31, 2013.

 

		Year Ended								Year Ended
Multi-Asset Global Opportunity Fund		December 31, 2013								December 31, 2012
Class A Shares		Shares				Amount				Shares				Amount
Shares sold			2,921,816			$	35,619,771				1,552,196			$	17,000,236
Converted from Class B*			77,166				935,861				93,200				1,029,990
Reinvestment of distributions			490,264				5,977,474				345,422				3,800,383
Shares reacquired			(1,988,433	)			(24,180,375	)			(2,800,046	)			(30,588,025	)
Increase (decrease)			1,500,813			$	18,352,731				(809,228	)		$	(8,757,416	)
Class B Shares
Shares sold			52,408			$	578,867				40,503			$	411,873
Reinvestment of distributions			23,246				260,011				21,945				222,539
Shares reacquired			(125,720	)			(1,398,897	)			(172,488	)			(1,738,387	)
Converted to Class A*			(83,880	)			(935,861	)			(101,001	)			(1,029,990	)
Decrease			(133,946	)		$	(1,495,880	)			(211,041	)		$	(2,133,965	)
Class C Shares
Shares sold			1,128,867			$	12,695,675				800,084			$	8,165,734
Reinvestment of distributions			117,122				1,314,200				80,450				818,422
Shares reacquired			(940,152	)			(10,435,849	)			(814,477	)			(8,174,226	)
Increase			305,837			$	3,574,026				66,057			$	809,930
Class F Shares
Shares sold			396,353			$	4,857,237				73,178			$	805,841
Reinvestment of distributions			14,236				174,793				6,196				68,285
Shares reacquired			(104,449	)			(1,261,563	)			(174,083	)			(1,860,127	)
Increase (decrease)			306,140			$	3,770,467				(94,709	)		$	(986,001	)

 

106

Notes to Financial Statements (concluded)

 

		Year Ended								Year Ended
Multi-Asset Global Opportunity Fund		December 31, 2013								December 31, 2012
Class I Shares		Shares				Amount				Shares				Amount
Shares sold			699,309			$	8,359,983				575,905			$	6,222,060
Reinvestment of distributions			101,147				1,242,475				55,529				616,411
Shares reacquired			(27,188	)			(331,641	)			(53,055	)			(584,559	)
Increase			773,268			$	9,270,817				578,379			$	6,253,912
Class R2 Shares
Shares sold			1,409			$	17,074				1,137			$	12,711
Reinvestment of distributions			324				4,000				289				3,236
Shares reacquired			(3,927	)			(48,452	)			(705	)			(7,402	)
Increase (decrease)			(2,194	)		$	(27,378	)			721			$	8,545
Class R3 Shares
Shares sold			136,898			$	1,662,308				184,157			$	2,009,518
Reinvestment of distributions			20,370				249,294				13,808				152,882
Shares reacquired			(150,355	)			(1,822,407	)			(61,723	)			(674,244	)
Increase			6,913			$	89,195				136,242			$	1,488,156

*	Automatic conversion of Class B shares occurs on the 25th day of the month (or, if the 25th day is not a business day, the next

 

107

Report of Independent Registered Public Accounting Firm

 

To the Board of Directors of Lord Abbett Global Fund, Inc. and the Shareholders of Lord Abbett Emerging Markets Corporate Debt Fund, Lord Abbett Emerging Markets Currency Fund, Lord Abbett Emerging Markets Local Bond Fund and Lord Abbett Multi-Asset Global Opportunity Fund:

 

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of the Lord Abbett Emerging Markets Currency Fund and Lord Abbett Multi-Asset Global Opportunity Fund (formerly, Lord Abbett Global Allocation Fund), two of the four funds constituting the Lord Abbett Global Fund, Inc. (the “Company”) as of December 31, 2013, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. We have also audited the accompanying statements of assets and liabilities, including the schedules of investments, of the Lord Abbett Emerging Markets Corporate Debt Fund and Lord Abbett Emerging Markets Local Bond Fund, two of the four funds constituting the Company as of December 31, 2013, and the related statements of operations, the statements of changes in net assets, and the financial highlights for the period from December 6, 2013 (Lord Abbett Emerging Markets Corporate Debt Fund’s commencement of operations) and June 21, 2013 (Lord Abbett Emerging Markets Local Bond Fund’s commencement of operations) to December 31, 2013. These financial statements and financial highlights are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

 

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2013, by correspondence with the custodian, transfer agent, brokers and agent banks; where replies were not received from brokers and agent banks, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

 

108

Report of Independent Registered Public Accounting Firm (concluded)

 

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Lord Abbett Emerging Markets Currency Fund and Lord Abbett Multi-Asset Global Opportunity Fund of the Lord Abbett Global Fund, Inc. as of December 31, 2013, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. Additionally, in our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Lord Abbett Emerging Markets Corporate Debt Fund and Lord Abbett Emerging Markets Local Bond Fund of the Lord Abbett Global Fund, Inc. as of December 31, 2013, the results of their operations, the changes in their net assets, and the financial highlights for the period from December 6, 2013 (Lord Abbett Emerging Markets Corporate Debt Fund’s commencement of operations) and June 21, 2013 (Lord Abbett Emerging Markets Local Bond Fund’s commencement of operations) through December 31, 2013, in conformity with accounting principles generally accepted in the United States of America.

 

DELOITTE & TOUCHE LLP

New York, New York

February 27, 2014

 

109

Investments in Underlying Funds (unaudited)

 

Multi-Asset Global Opportunity Fund invests in Underlying Funds managed by Lord Abbett. As of December 31, 2013, Multi-Asset Global Opportunity Fund’s long-term investments were allocated among the Underlying Funds as follows:

 

Underlying Fund Name		% of Investments
Lord Abbett Affiliated Fund, Inc. – Class I			1.86%
Lord Abbett Equity Trust – Calibrated Large Cap Value Fund – Class I			0.52%
Lord Abbett Equity Trust – Calibrated Mid Cap Value Fund – Class I			11.23%
Lord Abbett Global Fund, Inc. – Emerging Markets Currency Fund – Class I			16.54%
Lord Abbett Investment Trust – High Yield Fund – Class I			10.06%
Lord Abbett Municipal Income Fund, Inc. – High Yield Municipal Bond Fund – Class I			2.14%
Lord Abbett Securities Trust – International Dividend Income Fund – Class I			39.36%
Lord Abbett Mid Cap Stock Fund, Inc. – Class I			14.52%
Lord Abbett Investment Trust – Short Duration Income Fund – Class I			3.77%

 

The Ten Largest Holdings and the Holdings by Sector, as of December 31, 2013, for each Underlying Fund are presented below. Each Underlying Fund’s annual and semiannual reports, which are sent to shareholders and filed with the SEC, contain information about the Underlying Fund’s portfolio holdings, including a complete schedule of holdings. A complete schedule of holdings for each Underlying Fund is also filed with the SEC on Form N-Q as of the end of each respective Underlying Fund’s first and third quarters. In addition, on or about the first day of the second month following each calendar quarter-end, each Fund makes publicly available a complete schedule of its portfolio holdings as of the last day of each such quarter. The information for the most recently ended calendar quarter may be viewed at www.lordabbett.com or requested at no charge by calling Lord Abbett at 888-522-2388.

 

Lord Abbett Affiliated Fund, Inc.

 

Ten Largest Holdings		% of Investments
JPMorgan Chase & Co.			3.61%
Pfizer, Inc.			3.57%
Occidental Petroleum Corp.			3.02%
Wal-Mart Stores, Inc.			2.83%
Verizon Communications, Inc.			2.60%
Microsoft Corp.			2.47%
Philip Morris International, Inc.			2.45%
Apple, Inc.			2.44%
McDonald’s Corp.			2.36%
Chevron Corp.			2.34%

 

110

Investments in Underlying Funds (unaudited)(continued)

 

Holdings by Sector*		% of Investments
Consumer Discretionary			8.13%
Consumer Staples			10.45%
Energy			10.81%
Financials			20.96%
Health Care			9.55%
Industrials			12.22%
Information Technology			14.24%
Materials			5.20%
Telecommunication Services			3.11%
Utilities			5.07%
Repurchase Agreement			0.26%
Total			100.00%

*	A sector may comprise several industries.

 

Lord Abbett Equity Trust – Calibrated Large Cap Value Fund

 

Ten Largest Holdings		% of Investments
JPMorgan Chase & Co.			4.37%
Exxon Mobil Corp.			3.44%
Pfizer, Inc.			3.37%
Citigroup, Inc.			3.23%
Chevron Corp.			2.74%
SunTrust Banks, Inc.			2.16%
Occidental Petroleum Corp.			2.16%
Capital One Financial Corp.			2.15%
Kellogg Co.			2.01%
Bristol-Myers Squibb Co.			2.01%
Holdings by Sector*		% of Investments
Consumer Discretionary			6.07%
Consumer Staples			6.19%
Energy			15.31%
Financials			29.27%
Health Care			13.02%
Industrials			10.82%
Information Technology			8.69%
Materials			2.95%
Telecommunication Services			2.13%
Utilities			5.24%
Repurchase Agreement			0.31%
Total			100.00%

*	A sector may comprise several industries.

 

111

Investments in Underlying Funds (unaudited)(continued)

 

Lord Abbett Equity Trust – Calibrated Mid Cap Value Fund

 

Ten Largest Holdings		% of Investments
Cardinal Health, Inc.			2.51%
AES Corp. (The)			2.30%
Hartford Financial Services Group, Inc.			2.22%
Rock-Tenn Co. Class A			2.08%
SunTrust Banks, Inc.			2.02%
CIT Group, Inc.			1.95%
Great Plains Energy, Inc.			1.95%
CF Industries Holdings, Inc.			1.82%
Ares Capital Corp			1.81%
Kohl’s Corp.			1.72%
Holdings by Sector*		% of Investments
Consumer Discretionary			9.14%
Consumer Staples			3.24%
Energy			7.55%
Financials			32.47%
Health Care			8.71%
Industrials			11.29%
Information Technology			10.15%
Materials			5.70%
Telecommunication Services			0.20%
Utilities			11.24%
Repurchase Agreement			0.31%
Total			100.00%

*	A sector may comprise several industries.

 

Lord Abbett Global Fund, Inc. – Emerging Markets Currency Fund

 

Ten Largest Holdings		% of Investments
Turkey Government Bond , Zero Coupon, 4/9/2014			4.31%
Federal National Mortgage Assoc., 4.50%, 11/1/2018			1.18%
Nigeria Treasury Bill, Zero Coupon, 3/6/2014			1.11%
Morgan Stanley, 4.75%, 4/1/2014			1.06%
Wachovia Corp., 0.576%, 10/28/2015			1.05%
UDR, Inc., 5.50%, 4/1/2014			1.01%
Plains Exploration & Production Co., 7.625%, 4/1/2020			0.94%
Anadarko Petroleum Corp., 7.625%, 3/15/2014			0.90%
Bank of America Corp., 10.20%, 7/15/2015			0.89%
Anglo American Capital plc (United Kingdom), 9.375%, 4/8/2014			0.86%

 

112

Investments in Underlying Funds (unaudited)(continued)

 

Holdings by Sector*		% of Investments
Asset-Backed			14.29%
Automotive			1.30%
Banking			8.31%
Basic Industry			3.43%
Capital Goods			1.43%
Consumer Cyclical			1.76%
Consumer Non-Cyclical			0.33%
Energy			8.63%
Financial Services			1.40%
Foreign Government			5.49%
Health Care			2.20%
Insurance			1.15%
Media			1.28%
Mortgage-Backed			34.85%
Real Estate			4.31%
Services			2.74%
Technology & Electronics			1.71%
Telecommunications			1.92%
Utility			3.47%
Total			100.00%

*	A sector may comprise several industries.

 

Lord Abbett Investment Trust – High Yield Fund

 

Ten Largest Holdings		% of Investments
First Data Corp., 12.625%, 1/15/2021			0.97%
Alliance Data Systems Corp., 6.375%, 4/1/2020			0.74%
Intelsat Luxembourg SA, 7.75%, 6/1/2021			0.74%
LBG Capital No.1 plc, 8.00%, TBA			0.72%
Sprint Communications, Inc., 7.00%, 8/15/2020			0.66%
CIT Group, Inc., 5.375%, 5/15/2020			0.63%
DISH DBS Corp., 5.875%, 7/15/2022			0.63%
AMC Networks, Inc., 7.75%, 7/15/2021			0.61%
Concho Resources, Inc., 5.50%, 4/1/2023			0.61%
Red de Carreteras de Occidente S.A.P.I.B. de CV, 9.00%, 6/10/2028			0.53%

 

113

Investments in Underlying Funds (unaudited)(continued)

 

Holdings by Sector*		% of Investments
Automotive			2.23%
Banking			3.55%
Basic Industry			9.78%
Capital Goods			5.87%
Consumer Cyclical			7.41%
Consumer Non-Cyclical			3.38%
Energy			13.50%
Financial Services			3.47%
Foreign Government			0.25%
Healthcare			7.14%
Insurance			1.05%
Media			9.39%
Municipal			0.11%
Real Estate			0.20%
Services			11.51%
Technology & Electronics			8.13%
Telecommunications			8.22%
Utility			4.65%
Repurchase Agreement			0.16%
Total			100.00%

*	A sector may comprise several industries.

 

Lord Abbett Municipal Income Fund, Inc. – High Yield Municipal Bond Fund

 

Ten Largest Holdings		% of Investments
Buckeye Tobacco, 5.125%, 06/1/2024			1.55%
Tobacco Settlement Fin Corp, 5.00%, 06/1/2041			1.50%
Golden St Tobacco, 5.00%, 06/1/2033			1.36%
San Antonio Elec & Gas, 5.25%			1.27%
NJ EDA—Continental Airlines AMT, 5.25%, 09/15/2029			0.91%
OH Hsp—Cleveland Clinic, 5.50%			0.86%
Cleveland Arpt—Continental Airlines AMT, 5.375%, 09/15/2027			0.85%
RI Hlth & Ed—St Joseph Hlth, 5.50%, 10/1/2029			0.81%
Golden St Tobacco, 4.50%, 06/1/2027			0.80%
Niagara Area Dev Corp—Covanta AMT, 5.25%, 11/1/2042			0.77%

 

114

Investments in Underlying Funds (unaudited)(continued)

 

Portfolio Holdings Presented by Credit Rating

Credit Rating: S&P or Moody’s (a)		% of Investments
AA		4.26%
AA+		1.12%
AAA		0.81%
D		0.27%
AA-		1.42%
A+		2.77%
A		3.63%
A-		3.15%
BBB+		2.60%
BBB		4.52%
BBB-		8.45%
BB+		7.72%
BB		5.18%
BB-		4.20%
B+		1.76%
B		8.02%
B-		7.63%
CCC		1.14%
CC		0.02%
C		0.00%*
NR		31.33%
Money Market Mutual Fund		0.00%*
Total		100.00%

(a)	Certain investments have been rated by Fitch IBCA.
*	Amount is less than 0.01%.

 

Lord Abbett Securities Trust – International Dividend Income Fund

 

Ten Largest Holdings		% of Investments
Rio Tinto plc ADR			2.58%
Eni SpA ADR			1.97%
Total SA ADR			1.92%
Siemens AG Registered Shares			1.92%
SJM Holdings Ltd.			1.90%
National Australia Bank Ltd.			1.90%
Vivendi SA			1.88%
Aegon NV			1.87%
Deutsche Telekom AG Registered Shares			1.85%
BP plc			1.81%

 

115

Investments in Underlying Funds (unaudited)(continued)

 

Holdings by Sector*		% of Investments
Banking			0.72%
Consumer Discretionary			10.69%
Consumer Staples			6.05%
Energy			9.38%
Financials			24.86%
Health Care			5.93%
Industrials			11.21%
Information Technology			2.38%
Materials			6.08%
Telecommunication Services			12.45%
Utilities			8.87%
Repurchase Agreement			1.38%
Total			100.00%

*	A sector may comprise several industries.

 

Lord Abbett Mid Cap Stock Fund, Inc.

 

Ten Largest Holdings		% of Investments
Hartford Financial Services Group, Inc.			2.42%
SunTrust Banks, Inc.			1.91%
Pentair Ltd. Registered Shares (Switzerland)			1.75%
Fidelity National Information Services, Inc.			1.74%
XL Group plc (Ireland)			1.60%
Jones Lang LaSalle, Inc.			1.57%
Lincoln National Corp.			1.54%
Invesco Ltd.			1.49%
Raymond James Financial, Inc.			1.48%
Actavis plc			1.47%
Holdings by Sector*		% of Investments
Consumer Discretionary			10.42%
Consumer Staples			3.51%
Energy			7.38%
Financials			30.84%
Health Care			10.52%
Industrials			12.76%
Information Technology			10.11%
Materials			6.91%
Utilities			6.91%
Repurchase Agreement			0.64%
Total			100.00%

*	A sector may comprise several industries.

 

116

Investments in Underlying Funds (unaudited)(concluded)

 

Lord Abbett Investment Trust – Short Duration Income Fund  

 

Ten Largest Holdings		% of Investments
U.S. Treasury Note, 0.375%, 3/15/2015			3.14%
DCP Mistream LLC, Zero Coupon, 1/17/2014			0.63%
QVC, Inc., 7.50%, 10/1/2019			0.61%
Fidelity National Information Services, Inc., 7.875%, 7/15/2020			0.53%
Merrill Lynch/Countrywide Commercial Mortgage Trust 2007–5 AM, 5.419%, 8/12/2048			0.51%
Wachovia Bank Commercial Mortgage Trust 2007-C31 AM, 5.591%, 4/15/2047			0.51%
Host Hotels & Resorts LP, 6.00%, 11/1/2020			0.50%
Mylan, Inc., 6.00%, 11/15/2018			0.49%
Cricket Communications, Inc., 7.75%, 10/15/2020			0.49%
Citigroup, Inc., 5.00%, 9/15/2014			0.48%
Holdings by Sector*		% of Investments
Auto			0.09%
Basic Industry			0.55%
Capital Goods			0.23%
Consumer Cyclicals			3.87%
Consumer Discretionary			1.65%
Consumer Non-Cyclical			0.06%
Consumer Services			1.25%
Consumer Staples			0.99%
Energy			8.46%
Financial Services			53.05%
Foreign Government			0.53%
Health Care			2.96%
Integrated Oils			3.00%
Materials and Processing			4.21%
Media			0.15%
Municipal			0.06%
Producer Durables			0.70%
Technology			1.59%
Telecommunications			1.92%
Transportation			1.27%
U.S. Government			10.06%
Utilities			2.14%
Repurchase Agreements			1.21%
Total			100.00%

*	A sector may comprise several industries.

 

117

Basic Information About Management

 

The Board is responsible for the management of the business and affairs of the Company in accordance with the laws of the State of Maryland. The Board elects officers who are responsible for the day-to-day operations of each Fund and who execute policies authorized by the Board. The Board also approves an investment adviser to each Fund and continues to monitor the cost and quality of the services the investment adviser provides, and annually considers whether to renew the contract with the adviser. Generally, each Director holds office until his/her successor is elected and qualified or until his/her earlier resignation or removal, as provided in the Company’s organizational documents.

 

Lord Abbett, a Delaware limited liability company, is the Company’s investment adviser. Designated Lord Abbett personnel are responsible for the day-to-day management of the Funds.

 

Interested Director

Ms. Foster is affiliated with Lord Abbett and is an “interested person” of the Company as defined in the Act. Ms. Foster is a director/trustee and officer of each of the 12 Lord Abbett-sponsored funds, which consist of 55 portfolios or series.

 

Name, Address and Year of Birth		Current Position and Length of Service with the Company		Principal Occupation and Other Directorships During the Past Five Years
Daria L. Foster Lord, Abbett & Co. LLC 90 Hudson Street Jersey City, NJ 07302 (1954)		Director and President since 2006; Chief Executive Officer since 2012		Principal Occupation: Managing Partner of Lord Abbett (since 2007), and was formerly Director of Marketing and Client Service, joined Lord Abbett in 1990.   Other Directorships: None.

 

 

 

Independent Directors

The following Independent Directors also are directors/trustees of each of the 12 Lord Abbett-sponsored funds, which consist of 55 portfolios or series.

 

Name, Address and Year of Birth		Current Position and Length of Service with the Company		Principal Occupation and Other Directorships During the Past Five Years
E. Thayer Bigelow Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1941)		Director since 1994; Chairman since 2013		Principal Occupation: Managing General Partner, Bigelow Media, LLC (since 2000); Senior Adviser, Time Warner Inc. (1998 - 2000).   Other Directorships: Currently serves as director of Crane Co. (since 1984) and Huttig Building Products Inc. (since 1998). Previously served as a director of R.H. Donnelley Inc. (2009 - 2010).
Robert B. Calhoun, Jr. Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1942)		Director since 1998		Principal Occupation: Senior Advisor of Monitor Clipper Partners, a private equity investment fund (since 1997); President of Clipper Asset Management Corp. (1991 - 2009).   Other Directorships: Previously served as a director of Interstate Bakeries Corp. (1991 - 2008).

 

118

Basic Information About Management (continued)

 

Name, Address and Year of Birth		Current Position and Length of Service with the Company		Principal Occupation and Other Directorships During the Past Five Years
Evelyn E. Guernsey Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1955)		Director since 2011		Principal Occupation: CEO, Americas of J.P. Morgan Asset Management (2004 - 2010).   Other Directorships: None.
Julie A. Hill Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1946)		Director since 2004		Principal Occupation: Owner and CEO of The Hill Company, a business consulting firm (since 1998).   Other Directorships: Currently serves as director of WellPoint, Inc., a health benefits company (since 1994). Previously served as a director of Lend Lease Corporation Limited, an international retail and residential property group (2006 - 2012).
Franklin W. Hobbs Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1947)		Director since 2000		Principal Occupation: Advisor of One Equity Partners, a private equity firm (since 2004).   Other Directorships: Currently serves as director and Chairman of the Board of Ally Financial Inc., a financial services firm (since 2009), and as director of Molson Coors Brewing Company (since 2002).
James M. McTaggart Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1947)		Director since 2012		Principal Occupation: Independent management advisor and consultant (since 2012); Vice President, CRA International, Inc. (doing business as Charles River Associates), a global management consulting firm (2009-2012); Founder and Chairman of Marakon Associates, Inc., a strategy consulting firm (1978 - 2009); and Officer and Director of Trinsum Group, a holding company (2007 - 2009).   Other Directorships: Currently serves as director of Blyth, Inc., a home products company (since 2004).
James L.L. Tullis Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1947)		Director since 2006		Principal Occupation: CEO of Tullis-Dickerson and Co. Inc., a venture capital management firm (since 1990); CEO of Tullis Health Investors Inc. (since 2012).   Other Directorships: Currently serves as director of Crane Co. (since 1998). Previously served as a director of Synageva BioPharma Corp., a biopharmaceutical company (2009 - 2011).

 

 

 

Officers

None of the officers listed below have received compensation from the Company. All of the officers of the Company also may be officers of the other Lord Abbett-sponsored funds and maintain offices at 90 Hudson Street, Jersey City, NJ 07302. Unless otherwise indicated, the position(s) and title(s) listed under the “Principal Occupation During the Past Five Years” column indicate each officer’s position(s) and title(s) with Lord Abbett.

 

119

Basic Information About Management (continued)

 

Name and Year of Birth		Current Position with the Company		Length of Service of Current Position		Principal Occupation During the Past Five Years
Daria L. Foster (1954)		President and Chief Executive Officer		Elected as President in 2006 and Chief Executive Officer in 2012		Managing Partner of Lord Abbett (since 2007), and was formerly Director of Marketing and Client Service, joined Lord Abbett in 1990.
Robert I. Gerber (1954)		Executive Vice President		Elected in 2001		Partner and Chief Investment Officer (since 2007), joined Lord Abbett in 1997 as Director of Taxable Fixed Income Management.
Jerald M. Lanzotti (1967)		Executive Vice President		Elected in 2013		Partner and Portfolio Manager, joined Lord Abbett in 1996.
Robert A. Lee (1969)		Executive Vice President		Elected in 2013		Partner and Director of Taxable Fixed Income, joined Lord Abbett in 1997.
Leah G. Traub (1979)		Executive Vice President		Elected in 2009		Partner and Director of Currency Management, joined Lord Abbett in 2007.
Joan A. Binstock (1954)		Chief Financial Officer and Vice President		Elected in 1999		Partner and Chief Financial and Operations Officer, joined Lord Abbett in 1999.
John K. Forst (1960)		Vice President and Assistant Secretary		Elected in 2005		Partner and Deputy General Counsel, joined Lord Abbett in 2004.
Lawrence H. Kaplan (1957)		Vice President and Secretary		Elected in 1997		Partner and General Counsel, joined Lord Abbett in 1997.
Steven M. Lipper (1961)		Vice President		Elected in 2011		Director, Product Management, joined Lord Abbett in 2004.
Joseph M. McGill (1962)		Chief Compliance Officer		Elected in 2014		Chief Compliance Officer, joined Lord Abbett in 2014 and was formerly a Managing Director and Chief Compliance Officer at UBS Global Asset Management (2003 - 2013).
A. Edward Oberhaus, III (1959)		Vice President		Elected in 1996		Partner and Director, joined Lord Abbett in 1983.

 

120

Basic Information About Management (concluded)

 

Name and Year of Birth		Current Position with the Company		Length of Service of Current Position		Principal Occupation During the Past Five Years
Andrew H. O’Brien (1973)		Vice President		Elected in 2013		Partner and Portfolio Manager, joined Lord Abbett in 1998.
Thomas R. Phillips (1960)		Vice President and Assistant Secretary		Elected in 2008		Partner and Deputy General Counsel, joined Lord Abbett in 2006.
David B. Ritt (1976)		Vice President		Elected in 2009		Portfolio Manager, joined Lord Abbett in 2006.
Lawrence B. Stoller (1963)		Vice President and Assistant Secretary		Elected in 2007		Partner and Senior Deputy General Counsel, joined Lord Abbett in 2007.
Scott S. Wallner (1955)		AML Compliance Officer		Elected in 2011		Assistant General Counsel, joined Lord Abbett in 2004.
Bernard J. Grzelak (1971)		Treasurer		Elected in 2003		Partner and Director of Fund Administration, joined Lord Abbett in 2003.

 

Please call 888-522-2388 for a copy of the statement of additional information, which contains further information about the Company’s Directors. It is available free upon request.

 

121

Approval of Advisory Contract

 

Emerging Markets Corporate Debt Fund

 

At a meeting held on July 18, 2013, the Board, including all of the Directors who are not interested persons of the Company or of Lord Abbett, considered whether to approve the proposed management agreement between the Fund and Lord Abbett. The Board reviewed materials relating specifically to the management agreement before and at the meeting and had the opportunity to ask questions and request further information, taking into account its familiarity with Lord Abbett gained through its meetings and discussions.

 

The materials received by the Board included, but were not limited to, (1) information provided by Morningstar regarding the expense ratios, contractual and effective management fee rates, and other expense components for the Fund and a group of funds with similar objectives and of similar size (the “peer group”); (2) information provided by Lord Abbett on the projected expense ratios, management fee rates, and other expense components for the Fund information regarding the distribution arrangements of the Fund; and (3) 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 to be provided by Lord Abbett to the Fund, including investment research, portfolio management, and trading, and Lord Abbett’s commitment to compliance with all relevant legal requirements. The Board also observed that Lord Abbett was engaged solely 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.

 

Investment Performance. Because the Fund had not yet begun operations, the Board was not able to review the Fund’s investment performance and compliance.

 

Lord Abbett’s Personnel and Methods. The Board considered the qualifications of the personnel who would provide 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. The Board determined that Lord Abbett had the expertise and resources to manage the Fund effectively.

 

Nature and Quality of Other Services. The Board considered the nature, quality, costs, and extent of compliance, administrative, and other services to be performed by Lord Abbett and Distributor 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 projected expense levels of each class of shares of the Fund and the expense levels of the peer group. It also considered the amount and nature of the fees to be paid by shareholders. The Board noted that it and Lord Abbett had agreed to a management fee waiver and expense limitation agreement under which it would waive all or a portion of its management fee and, if necessary, reimburse the Fund’s other expenses to the extent necessary so that the total net annual operating expenses for each class, excluding Rule 12b-1 fees, do not exceed an annual rate of 0.85%.

 

Profitability. Because the Fund had not yet begun operations, the Board was not able to consider the level of Lord Abbett’s profits in managing the Fund.

 

122

Approval of Advisory Contract (continued)

 

Economies of Scale. The Board considered whether there might be economies of scale in managing the Fund and whether the Fund would benefit appropriately from any such 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.

 

Other Benefits to Lord Abbett. The Board considered the character and amount of fees proposed to be paid by the Fund and the Fund’s shareholders to Lord Abbett and 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 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. 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 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.

 

In considering whether to approve the management agreement, the Board did not identify any single factor as paramount or controlling. This summary does not discuss in detail all matters considered. After considering all of the relevant factors, the Board unanimously found that approval of the management agreement was in the best interests of the Fund and its shareholders and voted unanimously to approve the management agreement.

 

Emerging Markets Currency Fund and Multi-Asset Global Opportunity Fund

 

The Board of Directors of the Company, including all of the Directors who are not interested persons of the Company or Lord Abbett, annually considers whether to approve the continuation of the existing management agreement between each Fund and Lord Abbett. In connection with its most recent approval, the Board reviewed materials relating specifically to the management agreement, as well as numerous materials received throughout the course of the year, including information about each Fund’s investment performance compared to the performance of its benchmark. Before making its decision as to each 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 the examination of the portfolio management teams 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 materials received by the Board as to each Fund included, but were not limited to: (1) information provided by Morningstar Associates, LLC (“Morningstar”) regarding the investment performance of the Fund compared to the investment performance of a group of funds in the same Morningstar investment category (the “performance peer group”) and the investment performance of one or more appropriate benchmarks; (2) information provided by Morningstar regarding the expense ratios, contractual and effective management fee rates, and other expense components for the Fund and one or more groups of funds in the same Morningstar category, with the same share classes and operational characteristics, including asset size (the “expense peer group”); (3) as to

 

123

Approval of Advisory Contract (continued)

 

Emerging Markets Currency Fund, certain supplemental investment performance information provided by Lord Abbett; (4) information provided by Lord Abbett on the projected 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 management agreement to Lord Abbett; (8) information provided by Lord Abbett regarding the investment management fees Lord Abbett receives from its other advisory clients maintaining accounts with a similar investment strategy as the Fund; (9) information regarding the distribution arrangements of the Fund; and (10) 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 each 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.

 

Investment Performance. The Board reviewed each Fund’s investment performance in relation to that of the performance peer group, in each case as of various periods ended August 31, 2013. As to Emerging Markets Currency Fund, the Board observed that the Fund’s investment performance was below the median of the peer group for the one, three, five, and ten year periods. The Board also noted that the strategy of the Fund differed from that of most mutual funds in the peer group and accordingly considered the performance of the Fund in relationship to the Barclays Global Emerging Markets Strategy (GEMS) Index and to a competitor fund with strategies that closely mirror the Fund’s strategy. As to Multi-Asset Global Opportunity Fund, the Board observed that the Fund’s investment performance was above the median of the peer group for the one, three, and ten-year periods and below the median of the peer group for the five-year period.

 

Lord Abbett’s Personnel and Methods. The Board considered the qualifications of the personnel providing investment management services to each 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 Lord Abbett Distributor LLC (“Distributor”) and the nature and extent of Lord Abbett’s supervision of third party service providers, including each Fund’s transfer agent and custodian.

 

Expenses. The Board considered the expense levels of each Fund and the expense levels of one or more corresponding expense peer groups. It also considered the projected expense levels of each Fund and how those levels would relate to those of the expense peer group and the amount and nature of the fees paid by shareholders. As to Emerging Markets Currency Fund, the Board observed that the overall expense level was below the median of the expense peer group. As to Multi-Asset Global Opportunity Fund, the Board observed that the overall expense level was well below the median of the expense peer group.

 

124

Approval of Advisory Contract (concluded)

 

Profitability. As to each Fund, the Board considered the level of Lord Abbett’s profits in managing the Fund, including a review of Lord Abbett’s methodology for allocating its costs to its management of the Fund. The Board concluded that the allocation methodology had a reasonable basis and was appropriate. It considered any profits realized by Lord Abbett in connection with the operation of each Fund, including the fee that Lord Abbett receives from the Fund for providing administrative services to the Fund, and whether the amount of profit was fair for the management of 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 in comparison with available industry data, both accounting for and ignoring marketing and distribution expenses, and how those profit margins could affect Lord Abbett’s ability to recruit and retain investment personnel. The Board recognized that Lord Abbett’s profitability was a factor in enabling it to attract and retain qualified investment management personnel to provide services to the Fund. The Board concluded that Lord Abbett’s profitability as to each Fund was not excessive.

 

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

 

Other Benefits to Lord Abbett. As to each Fund, the Board considered the character and amount of fees paid by the Fund and the Fund’s shareholders to Lord Abbett and 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 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 from the Funds, and receives a portion of the sales charges on sales and redemptions of some classes of shares. 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 prospectuses of the Funds, has entered into revenue sharing arrangements with certain entities that distribute shares of the Funds.

 

Alternative Arrangements. As to each Fund, the Board considered whether, instead of approving continuation of the management 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 existing management agreements was in the best interests of each Fund and its shareholders and voted unanimously to approve the continuation of the management agreements. In considering whether to approve the continuation of the management agreement, the Board did not identify any single factor as paramount or controlling. This summary does not discuss in detail all matters considered.

 

125

Householding

 

The Company has adopted a policy that allows it to send only one copy of each 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 each Fund’s portfolio securities, and information on how Lord Abbett voted each 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 Funds are required to file their complete schedule of portfolio holdings with the SEC for their 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).

 

Tax Information

 

52% of the ordinary income distributions paid by Multi-Asset Global Opportunity Fund during the year is qualified dividend income.

 

For corporate shareholders, 7% of the ordinary income distributions paid by Multi-Asset Global Opportunity Fund qualified for the dividends received deduction.

 

Multi-Asset Global Opportunity Fund intends to pass through foreign source income of $3,416,784 and foreign taxes of $385,168.

 

Additionally, of the distributions paid by Multi-Asset Global Opportunity Fund during the fiscal year ended December 31, 2013, $1,939,046 represents long-term capital gains. 0.45% of the ordinary income distributions paid by Multi-Asset Global Opportunity Fund during the fiscal year ended December 31, 2013 is tax-exempt dividend income.

 

For foreign shareholders, the percentages below reflect the portion of ordinary income distributions that represent interest-related dividends:

 

Fund Name
Emerging Markets Corporate Debt Fund			100	%
Emerging Markets Currency Fund			100	%
Emerging Markets Local Bond Fund			94	%

 

 

 

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 Global Fund, Inc.   Lord Abbett Emerging Markets Corporate Debt Fund Lord Abbett Emerging Markets Currency Fund Lord Abbett Emerging Markets Local Bond Fund Lord Abbett Multi-Asset Global Opportunity Fund (formerly, Lord Abbett Global Allocation Fund)

LAGF-2-1213  (02/14)

Item 2:	Code of Ethics.
(a)	In accordance with applicable requirements, the Registrant adopted a Sarbanes-Oxley Code of Ethics on June 19, 2003 that applies to the principal executive officer and senior financial officers of the Registrant (“Code of Ethics”).  The Code of Ethics was in effect during the fiscal year ended December 31, 2013 (the “Period”).
(b)	Not applicable.
(c)	The Registrant has not amended the Code of Ethics as described in Form N-CSR during the Period.
(d)	The Registrant has not granted any waiver, including an implicit waiver, from a provision of the Code of Ethics as described in Form N-CSR during the Period.
(e)	Not applicable.
(f)	See Item 12(a)(1) concerning the filing of the Code of Ethics.
Item 3:	Audit Committee Financial Expert.
	The Registrant’s board of directors has determined that each of the following independent directors who are members of the audit committee is an audit committee financial expert: E. Thayer Bigelow and Robert B. Calhoun, Jr. Each of these persons is independent within the meaning of the Form N-CSR.
Item 4:	Principal Accountant Fees and Services.
	Item 4: Principal Accountant Fees and Services.

 

In response to sections (a), (b), (c) and (d) of Item 4, the aggregate fees billed to the Registrant for the fiscal years ended December 31, 2013 and 2012 by the Registrant’s principal accounting firm, Deloitte & Touche LLP, the member firms of Deloitte Touche Tohmatsu and their respective affiliates (collectively, “Deloitte”) were as follows:

 

		Fiscal year ended:
		2013				2012
Audit Fees {a}		$	140,000			$	75,500
Audit-Related Fees			- 0 -				- 0 -
Total audit and audit-related fees			140,000				75,500
Tax Fees {b}			39,054				18,220
All Other Fees			- 0 -				- 0 -
Total Fees		$	179,054			$	93,720

 

 

{a} Consists of fees for audits of the Registrant’s annual financial statements.

 

{b} Fees for the fiscal year ended December 31, 2013 and 2012 consist of fees for preparing the U.S. Income Tax Return for Regulated Investment Companies, New Jersey Corporation Business Tax Return, New Jersey Annual Report Form, U.S. Return of Excise Tax on Undistributed Income of Investment Companies, IRS Forms 1099-MISC and 1096 Annual Summary and Transmittal of U.S. Information Returns.

 

(e) (1) Pursuant to Rule 2-01(c) (7) of Regulation S-X, the Registrant’s Audit Committee has adopted pre-approval policies and procedures. Such policies and procedures generally provide that the Audit Committee must pre-approve:

 

•

any audit, audit-related, tax, and other services to be provided to the Lord Abbett Funds, including the Registrant, and

 

•

any audit-related, tax, and other services to be provided to the Registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to one or more Funds comprising the Registrant if the engagement relates directly to operations and financial reporting of a Fund, by the independent auditor to assure that the provision of such services does not impair the auditor’s independence.

 

The Audit Committee has delegated pre-approval authority to its Chairman, subject to a fee limit of $10,000 per event, and not to exceed $25,000 annually. The Chairman will report any pre-approval decisions to the Audit Committee at its next scheduled meeting. Unless a type of service to be provided by the independent auditor has received general pre-approval, it must be pre-approved by the Audit Committee. Any proposed services exceeding pre-approved cost levels will require specific pre-approval by the Audit Committee.

 

(e) (2) The Registrant’s Audit Committee has approved 100% of the services described in this Item 4 (b) through (d).

 

(f) Not applicable.

 

(g) The aggregate non-audit fees billed by Deloitte for services rendered to the Registrant are shown above in the response to Item 4 (a), (b), (c) and (d) as “All Other Fees”.

 

The aggregate non-audit fees billed by Deloitte for services rendered to the Registrant’s investment adviser, Lord, Abbett & Co. LLC (“Lord Abbett”), for the fiscal years ended December 31, 2013 and 2012 were:

 

		Fiscal year ended:
		2013				2012
All Other Fees {a}		$	180,602			$	194,431

 

 

{a} Consist of fees for Independent Services Auditors’ Report on Controls Placed in Operation and Tests of Operating Effectiveness related to Lord Abbett’s Asset Management Services (“SOC-1 Report”).

 

The aggregate non-audit fees billed by Deloitte for services rendered to entities under the common control of Lord Abbett for the fiscal years ended December 31, 2013 and 2012 were:

 

		Fiscal year ended:
		2013				2012
All Other Fees		$	- 0 -			$	- 0 -

 

 

 

(h) The Registrant’s Audit Committee has considered the provision of non-audit services that were rendered to the Registrant’s investment adviser, and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the Registrant, that were not pre-approved pursuant to Rule 2-01 (c)(7)(ii) of Regulation S-X and has determined that the provision of such services is compatible with maintaining Deloitte’s independence.

 

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)	The Lord Abbett Family of Funds Sarbanes Oxley Code of Ethics for the Principal Executive Officer and Senior Financial Officers is attached hereto as part of Ex-99. CODEETH.
(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 GLOBAL FUND, INC.
	By:	/s/ Daria L. Foster
		Daria L. Foster
		President and Chief Executive Officer
Date: February 26, 2014
	By:	/s/ Joan A. Binstock
		Joan A. Binstock
		Chief Financial Officer and Vice President
Date: February 26, 2014

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/ Daria L. Foster
		Daria L. Foster
		President and Chief Executive Officer
Date: February 26, 2014
	By:	/s/ Joan A. Binstock
		Joan A. Binstock
		Chief Financial Officer and Vice President
Date: February 26, 2014