LORD ABBETTSEMIANNUAL REPORT
Lord AbbettSeries Fund—Mid Cap Stock Portfolio
For the six-month period ended June 30, 2020
100194_Lord Abbett_SAR.qxp_94026 8/14/20 3:04 AM Page FC1
100194_Lord Abbett_SAR.qxp_94026 8/14/20 3:04 AM Page IFC2
Table of Contents1 A Letter to Shareholders
2 Information About Your Fund’s Expenses and Holdings Presented by Sector
4 Schedule of Investments
7 Statement of Assets and Liabilities
8 Statement of Operations
9 Statements of Changes in Net Assets
10 Financial Highlights
12 Notes to Financial Statements
20 Supplemental Information to Shareholders
100194_Lord Abbett_SAR.qxp_94026 8/14/20 3:04 AM Page IFC3
100194_Lord Abbett_SAR.qxp_94026 8/14/20 3:04 AM Page IFC4
1
Lord Abbett Series Fund — Mid Cap Stock PortfolioSemiannual ReportFor the six-month period ended June 30, 2020
Dear Shareholders: We are pleased to provide you withthis semiannual report for Lord Abbett Series Fund —Mid Cap Stock Portfolio for the six-month period endedJune 30, 2020. For additional information about theFund, please visit our website at www.lordabbett.com,where you can access the quarterly commentaries bythe Fund’s portfolio managers. General informationabout Lord Abbett mutual funds, as well as in-depthdiscussions of market trends and investment strategies,is also provided in Lord Abbett Insights, a quarterlynewsletter available on our website.
Thank you for investing in Lord Abbett mutualfunds. We value the trust that you place in us and lookforward to serving your investment needs in the yearsto come.
Best regards,
Douglas B. SiegDirector, President, and Chief Executive Officer
From left to right: James L.L. Tullis,Independent Chairman of the Lord AbbettFunds and Douglas B. Sieg, Director,President, and Chief Executive Officer of theLord Abbett Funds.
100194_Lord Abbett_SAR.qxp_94026 8/14/20 3:04 AM Page 1
2
Expense ExampleAs a shareholder of the Fund, you incur ongoing costs, including management fees;
expenses related to the Fund’s services arrangements with certain insurance companies;and other Fund expenses. This Example is intended to help you understand your ongoingcosts (in dollars) of investing in the Fund and to compare these costs with the ongoingcosts of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of theperiod and held for the entire period (January 1, 2020 through June 30, 2020).
The Example reflects only expenses that are deducted from the assets of the Fund.Fees and expenses, including sales charges applicable to the various insurance productsthat invest in the Fund, are not reflected in this Example. If such fees and expenses werereflected in the Example, the total expenses shown would be higher. Fees and expensesregarding such variable insurance products are separately described in the prospectusrelated to those products.
Actual ExpensesThe first line of the table on the following page provides information about actual
account values and actual expenses. You may use the information in this line, togetherwith 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 valuedivided by $1,000 = 8.6), then multiply the result by the number in the first line under theheading titled “Expenses Paid During Period 1/1/20 – 6/30/20” to estimate the expensesyou paid on your account during this period.
Hypothetical Example for Comparison PurposesThe second line of the table on the following page provides information about
hypothetical account values and hypothetical expenses based on the Fund’s actualexpense ratio and an assumed rate of return of 5% per year before expenses, which is notthe Fund’s actual return. The hypothetical account values and expenses may not be usedto estimate the actual ending account balance or expenses you paid for the period. Youmay use this information to compare the ongoing costs of investing in the Fund and otherfunds. To do so, compare this 5% hypothetical example with the 5% hypothetical examplesthat appear in the shareholder reports of the other funds.
100194_Lord Abbett_SAR.qxp_94026 8/14/20 3:04 AM Page 2
3
Please note that the expenses shown in the table are meant to highlight yourongoing costs only and do not reflect any transactional costs, such as sales charges.Therefore, the second line of the table is useful in comparing ongoing costs only, and willnot help you determine the relative total costs of owning different funds. In addition, ifthese transactional costs were included, your costs would have been higher. Beginning Ending Expenses Account Account Paid During Value Value Period† ________ __________ __________ 1/1/20 - 1/1/20 6/30/20 6/30/20 ________ __________ __________Class VCActual $1,000.00 $ 835.30 $5.48Hypothetical (5% Return Before Expenses) $1,000.00 $1,018.90 $6.02† Net expenses are equal to the Fund’s annualized expense ratio of 1.20% multiplied by the average account value over the
period, multiplied by 182/366 (to reflect one- half year period).
Portfolio Holdings Presented by SectorJune 30, 2020
Sector* %**Communication Services 3.25%Consumer Discretionary 8.74%Consumer Staples 4.57%Energy 4.33%Financials 17.02%Health Care 8.15%Industrials 16.67%Information Technology 10.42%Materials 6.90%Real Estate 10.36%Utilities 9.01%Repurchase Agreement 0.48%Money Market Funds(a) 0.10%Total 100.00%
* A sector may comprise several industries.** Represents percent of total investments.(a) Securities were purchased with the cash collateral
from loaned securities.
100194_Lord Abbett_SAR.qxp_94026 8/14/20 3:04 AM Page 3
4 See Notes to Financial Statements.
Schedule of Investments (unaudited)June 30, 2020
Fair ValueInvestments Shares (000)
Fair ValueInvestments Shares (000)
COMMON STOCKS 99.63%
Aerospace & Defense 1.29%Hexcel Corp. 60,877 $ 2,753
Auto Components 1.62%Lear Corp. 31,800 3,467
Banks 5.26%CIT Group, Inc. 79,154 1,641
Citizens Financial Group, Inc. 104,400 2,635
East West Bancorp, Inc. 87,100 3,157
Sterling Bancorp 138,162 1,619
SVB Financial Group* 10,115 2,180
Total 11,232
Beverages 1.29%Carlsberg A/S Class B(a) DKK 20,800 2,758
Building Products 3.30%A.O. Smith Corp. 74,328 3,502
Masco Corp. 70,524 3,541
Total 7,043
Capital Markets 4.25%Ameriprise Financial, Inc. 24,079 3,613
Apollo Global Management, Inc. 53,698 2,680
Ares Capital Corp.(b) 192,300 2,779
Total 9,072
Chemicals 3.12%Axalta Coating Systems Ltd.* 155,052 3,496
Corteva, Inc.* 117,841 3,157
Total 6,653
Communications Equipment 1.25%F5 Networks, Inc.* 19,117 2,667
Construction & Engineering 1.56%EMCOR Group, Inc. 50,282 3,326
Consumer Finance 1.57%Discover Financial Services 66,900 3,351
Containers & Packaging 1.54%Avery Dennison Corp. 28,900 $ 3,297
Electric: Utilities 7.52%Edison International 67,300 3,655
Entergy Corp. 34,052 3,195
Evergy, Inc. 53,644 3,181
FirstEnergy Corp. 84,355 3,271
Pacific Gas And Electric Co. 64,285 64
Pinnacle West Capital Corp. 36,620 2,684
Total 16,050
Electrical Equipment 4.73%Acuity Brands, Inc. 32,635 3,125
Hubbell, Inc. 26,375 3,306
Rockwell Automation, Inc. 17,258 3,676
Total 10,107
Electronic Equipment, Instruments &Components 1.30%Avnet, Inc. 99,917 2,786
Energy Equipment & Services 0.66%National Oilwell Varco, Inc. 114,400 1,401
Equity Real Estate Investment Trusts 10.39%Alexandria Real Estate Equities, Inc. 22,206 3,603
Camden Property Trust 29,400 2,682
Duke Realty Corp. 90,301 3,196
Healthcare Trust of America, Inc. Class A 113,540 3,011
Highwoods Properties, Inc. 80,214 2,994
Host Hotels & Resorts, Inc. 95,136 1,027
UDR, Inc. 83,614 3,125
Weingarten Realty Investors 134,157 2,540
Total 22,178
Food Products 2.32%General Mills, Inc. 43,771 2,699
J.M. Smucker Co. (The) 21,237 2,247
Total 4,946
100194_Lord Abbett_SAR.qxp_94026 8/14/20 3:04 AM Page 4
See Notes to Financial Statements. 5
F V
S (
Schedule of Investments (unaudited)(continued)June 30, 2020
Fair ValueInvestments Shares (000)
Fair ValueInvestments Shares (000)
Health Care Equipment & Supplies 3.07%Alcon, Inc. (Switzerland)*(c) 56,226 $ 3,223
NuVasive, Inc.* 59,812 3,329
Total 6,552
Health Care Providers & Services 5.10%AmerisourceBergen Corp. 31,703 3,194
Centene Corp.* 50,476 3,208
Quest Diagnostics, Inc. 29,921 3,410
Universal Health Services, Inc. Class B 11,660 1,083
Total 10,895
Household Products 0.97%Spectrum Brands Holdings, Inc. 45,000 2,066
Information Technology Services 2.61%Amdocs Ltd. 35,829 2,181
Euronet Worldwide, Inc.* 35,500 3,402
Total 5,583
Insurance 5.98%Axis Capital Holdings Ltd. 57,421 2,329
Everest Re Group Ltd. 15,226 3,139
Globe Life, Inc. 27,750 2,060
Hanover Insurance Group, Inc. (The) 23,348 2,366
Hartford Financial Services Group, Inc. (The) 74,311 2,865
Total 12,759
Internet & Direct Marketing Retail 2.04%eBay, Inc. 82,999 4,353
Leisure Products 1.97%Brunswick Corp. 65,555 4,196
Machinery 4.31%Crane Co. 47,200 2,806
Cummins, Inc. 18,700 3,240
Westinghouse Air Brake Technologies Corp. 54,921 3,162
Total 9,208
Media 3.26%Fox Corp. Class A 98,000 $ 2,628
Interpublic Group of Cos., Inc. (The) 59,823 1,027
Nexstar Media Group, Inc. Class A 17,640 1,476
Omnicom Group, Inc. 33,500 1,829
Total 6,960
Metals & Mining 2.25%Lundin Mining Corp.(a) CAD 621,739 3,334
Nucor Corp. 35,600 1,474
Total 4,808
Multi- Utilities 1.51%CMS Energy Corp. 55,225 3,226
Oil, Gas & Consumable Fuels 3.68%Marathon Petroleum Corp. 57,494 2,149
Noble Energy, Inc. 213,920 1,917
ONEOK, Inc. 53,046 1,762
Parsley Energy, Inc. Class A 189,953 2,029
Total 7,857
Road & Rail 1.51%Landstar System, Inc. 28,800 3,235
Semiconductors & Semiconductor Equipment 3.63%Marvell Technology Group Ltd.93,448 3,276
Teradyne, Inc. 52,983 4,478
Total 7,754
Software 1.64%Synopsys, Inc.* 17,989 3,508
Specialty Retail 1.61%Ross Stores, Inc. 40,311 3,436
Textiles, Apparel & Luxury Goods 1.52%Columbia Sportswear Co. 40,300 3,247
Total Common Stocks(cost $223,949,763) 212,730
100194_Lord Abbett_SAR.qxp_94026 8/14/20 3:04 AM Page 5
6 See Notes to Financial Statements.
Schedule of Investments (unaudited)(concluded)June 30, 2020
Principal Fair Amount ValueInvestments (000) (000)
Fair ValueInvestments Shares (000)
SHORT- TERM INVESTMENTS 0.58%
Repurchase Agreement 0.48%Repurchase Agreement dated 6/30/2020, 0.00% due 7/1/2020 with Fixed Income Clearing Corp. collateralized by $968,500 of U.S. Treasury Note at 2.625% due 12/31/2023; value: $1,050,634; proceeds: $1,030,026(cost $1,030,026) $1,030 $ 1,030
Money Market Funds 0.10%CitiBank N.A.(d) 21,750 $ 22
Fidelity Government Portfolio(d) 195,750 195
Total Money Market Funds(cost $217,500) 217
Total Short- Term Investments(cost $1,247,526) 1,247
Total Investments in Securities 100.21%(cost $225,197,289) 213,977
Liabilities in Excess of Securities Lending and Other Assets (0.21)% (448)
Net Assets 100.00% $213,529
CAD Canadian dollar.DKK Danish Krone. * Non- income producing security. (a) Investment in non- U.S. dollar denominated securities. (b) All or a portion of this security was on loan to brokers
at June 30, 2020. (c) Foreign security traded in U.S. dollars. (d) Security was purchased with the cash collateral from
loaned securities.
The following is a summary of the inputs used as of June 30, 2020 in valuing the Fund’s investmentscarried at fair value(1):
Level 1 Level 2 Level 3 TotalInvestment Type(2) (000) (000) (000) (000)Common StocksBeverages $ – $2,758 $ – $ 2,758Electric: Utilities 15,986 64 – 16,050Remaining Industries 193,922 – – 193,922
Short- Term InvestmentsRepurchase Agreement – 1,030 – 1,030Money Market Funds 217 – – 217
Total $210,125 $3,852 $ – $213,977
(1) Refer to Note 2(i) for a description of fair value measurements and the three- tier hierarchy of inputs. (2) See Schedule of Investments for fair values in each industry and identification of foreign issuers and/or geography.
The table above is presented by Investment Type. Industries are presented within an Investment Type should suchInvestment Type include securities classified as two or more levels within the three- tier fair value hierarchy.
100194_Lord Abbett_SAR.qxp_94026 8/14/20 3:04 AM Page 6
See Notes to Financial Statements. 7
F V
S (
Statement of Assets and Liabilities (unaudited)June 30, 2020
ASSETS:Investments in securities, at fair value including $209,619 of securities loaned (cost $225,197,289) $213,977,251
Receivables:Investment securities sold 451,436Dividends 167,212Capital shares sold 22,041
Securities lending income receivable 10Prepaid expenses 359
Total assets 214,618,309
LIABILITIES:Payables:Management fee 132,471Directors’ fees 69,606Capital shares reacquired 45,647Fund administration 7,143Payable for collateral due to broker for securities lending 217,500
Accrued expenses 616,504
Total liabilities 1,088,871Commitments and contingent liabilities
NET ASSETS $213,529,438
COMPOSITION OF NET ASSETS:Paid- in capital $232,367,735Total distributable earnings (loss) (18,838,297)
Net Assets $213,529,438Outstanding shares (200 million shares of common stock authorized,
$.001 par value) 10,770,187Net asset value, offering and redemption price per share
(Net assets divided by outstanding shares) $19.83
* I
100194_Lord Abbett_SAR.qxp_94026 8/14/20 3:04 AM Page 7
Statement of Operations (unaudited)For the Six Months Ended June 30, 2020
Investment income:Dividends (net of foreign withholding taxes of $15,728) $ 2,766,025Securities lending net income 10Interest 1,382
Total investment income 2,767,417
Expenses:Management fee 815,606Non 12b-1 service fees 272,493Shareholder servicing 87,291Fund administration 44,225Reports to shareholders 31,468Professional 27,793Directors’ fees 2,874Custody 2,178Other 22,448Gross expenses 1,306,376Expense reductions (See Note 8) (1,714)
Net expenses 1,304,662
Net investment income 1,462,755
Net realized and unrealized gain (loss):Net realized gain (loss) on investments (8,040,261)Net realized gain (loss) on foreign currency related transactions 456Net change in unrealized appreciation/depreciation on investments (37,656,643)Net change in unrealized appreciation/depreciation on translation of assets and liabilities denominated in foreign currencies 224
Net realized and unrealized gain (loss) (45,696,224)
Net Decrease in Net Assets Resulting From Operations $(44,233,469)
8 See Notes to Financial Statements.
100194_Lord Abbett_SAR.qxp_94026 8/14/20 3:04 AM Page 8
$ 1
1
2
8 2
8 4 3
2 2
2 2 1
(
1
1
( 4 ( 2
(
$
See Notes to Financial Statements. 9
Statements of Changes in Net AssetsFor the Six Months
Ended June 30, 2020 For the Year Ended INCREASE (DECREASE) IN NET ASSETS (unaudited) December 31, 2019Operations:Net investment income $ 1,462,755 $ 2,413,673Net realized gain (loss) on investments and foreign currency related transactions (8,039,805) 7,087,354Net change in unrealized appreciation/depreciation on investments and translation of assets and liabilities denominated in foreign currencies (37,656,419) 42,550,934
Net increase (decrease) in net assets resulting from operations (44,233,469) 52,051,961
Distributions to shareholders: – (6,874,851)
Capital share transactions (See Note 14):Proceeds from sales of shares 7,572,163 33,801,297Reinvestment of distributions – 6,874,851Cost of shares reacquired (20,929,208) (55,704,547)
Net decrease in net assets resulting from capital share transactions (13,357,045) (15,028,399)
Net increase (decrease) in net assets (57,590,514) 30,148,711
NET ASSETS:Beginning of period $271,119,952 $240,971,241
End of period $213,529,438 $271,119,952
100194_Lord Abbett_SAR.qxp_94026 8/14/20 3:04 AM Page 9
Financial HighlightsPer Share Operating Performance: _______________________________________________________
Distributions toInvestment Operations: shareholders from:__________________________ __________________________
TotalNet from
Net asset Net realized invest- value, invest- and ment Net Net Total
beginning ment unrealized opera- investment realized distri- of period income(a) gain (loss) tions income gain butions_________________________________________________________________
6/30/2020(c) $23.74 $0.11 $(4.02) $(3.91) $ – $ – $ – $ ( 1 1 $ 312/31/2019 19.87 0.21 4.27 4.48 (0.21) (0.40) (0.61) 2 2 1 0 2 712/31/2018 24.51 0.15 (3.83) (3.68) (0.17) (0.79) (0.96) 1 ( 1 0 2 512/31/2017 25.52 0.14 1.58 1.72 (0.16) (2.57) (2.73) 2 6 1 0 3 712/31/2016 23.28 0.13 3.69 3.82 (0.13) (1.45) (1.58) 2 1 1 0 3 612/31/2015 26.02 0.15 (1.16) (1.01) (0.15) (1.58) (1.73) 2 ( 1 0 3 6(a) Calculated using average shares outstanding during the period.(b) Total return does not consider the effects of sales charges or other expenses imposed by an insurance company and
assumes the reinvestment of all distributions.(c) Unaudited.(d) Not annualized.(e) Annualized.
10 See Notes to Financial Statements.
100194_Lord Abbett_SAR.qxp_94026 8/14/20 3:04 AM Page 10
See Notes to Financial Statements. 11
Ratios to Average Net Assets: Supplemental Data:__________________________ ____________________
Net Net asset Net assets, Portfolio
value, Total Total investment end of turnoverend of return(b) expenses income period rate
period (%) (%) (%) (000) (%)____________________________________________________________________ $ $ $ $ – $ – $ – $19.83 (16.47)(d) 1.20(e) 1.34(e) $213,529 34(d) ( ( 23.74 22.64 1.17 0.91 271,120 79 2 ( ( ( ( ( 19.87 (15.04) 1.17 0.64 240,971 50 ( 24.51 6.83 1.16 0.55 331,388 70 ( 25.52 16.39 1.17 0.52 356,563 67 2 ( ( 23.28 (3.79) 1.18 0.56 347,526 61
C T
U N A
100194_Lord Abbett_SAR.qxp_94026 8/14/20 3:04 AM Page 11
12
Notes to Financial Statements (unaudited)1. ORGANIZATION
Lord Abbett Series Fund, Inc. (the “Company”) is registered under the Investment Company Act of1940, as amended (“the Act”), as a diversified, open- end management investment company andwas incorporated under Maryland law in 1989. The Company consists of nine separate portfoliosas of June 30, 2020. This report covers Mid Cap Stock Portfolio (the “Fund”).
The Fund’s investment objective is to seek capital appreciation through investments, primarily inequity securities, which are believed to be undervalued in the marketplace. The Fund has VariableContract class shares (“Class VC Shares”), which are currently issued and redeemed only inconnection with investments in, and payments under, variable annuity contracts and variable lifeinsurance policies issued by life insurance and insurance- related companies.
The preparation of the financial statements in conformity with accounting principles generallyaccepted in the United States of America (“U.S. GAAP”) requires management to make certainestimates and assumptions that affect the reported amounts of assets and liabilities and disclosureof contingent assets and liabilities at the date of the financial statements and the reported amountsof increases and decreases in net assets from operations during the reporting period. Actual resultscould differ from those estimates. The Fund is considered an investment company under U.S. GAAPand follows the accounting and reporting guidance applicable to investment companies.
2. SIGNIFICANT ACCOUNTING POLICIES
(a) Investment Valuation– Under procedures approved by the Fund’s Board of Directors (the“Board”), Lord, Abbett & Co. LLC (“Lord Abbett”), the Fund’s investment manager, has formed aPricing Committee to administer the pricing and valuation of portfolio investments and toensure that prices utilized reasonably reflect fair value. Among other things, these proceduresallow the Fund to utilize independent pricing services, quotations from securities and financialinstrument 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 NASDAQStock Market LLC are valued at the last sale price or official closing price on the exchange orsystem 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 reflecttheir fair value as of the close of regular trading on the New York Stock Exchange. The Fundmay utilize an independent fair valuation service in adjusting the valuations of foreignsecurities. Unlisted equity securities are valued at the last quoted sale price or, if no sale priceis available, at the mean between the most recently quoted bid and asked prices.
Securities for which prices are not readily available are valued at fair value as determined bythe Pricing Committee. The Pricing Committee considers a number of factors, includingobservable and unobservable inputs, when arriving at fair value. The Pricing Committee mayuse related or comparable assets or liabilities, recent transactions, market multiples, bookvalues and other relevant information to determine the fair value of portfolio investments. TheBoard or a designated committee thereof regularly reviews fair value determinations made bythe Pricing Committee and may employ techniques such as reviewing related market activity,reviewing inputs and assumptions, and retrospectively comparing prices of subsequentpurchases 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 theamortized cost method, which approximates fair value.
100194_Lord Abbett_SAR.qxp_94026 8/14/20 3:04 AM Page 12
(b) Security Transactions– Security transactions are recorded as of the date that the securitiesare purchased or sold (trade date). Realized gains and losses on sales of portfolio securities arecalculated using the identified- cost method.
(c) Investment Income– Dividend income is recorded on the ex- dividend date. Interest incomeis recorded on the accrual basis as earned. Discounts are accreted and premiums are amortizedusing the effective interest method and are included in Interest on the Statement ofOperations. Withholding taxes on foreign dividends have been provided for in accordance withthe applicable country’s tax rules and rates.
(d) Income Taxes– It is the policy of the Fund to meet the requirements of Subchapter M of theInternal Revenue Code applicable to regulated investment companies and to distributesubstantially all taxable income and capital gains to its shareholders. Therefore, no income taxprovision is required.
The Fund files U.S. federal and various state and local tax returns. No income tax returns arecurrently under examination. The statute of limitations on the Fund’s filed U.S. federal taxreturns remains open for the fiscal years ended December 31, 2016 through December 31,2019. The statutes of limitations on the Company’s state and local tax returns may remainopen for an additional year depending upon the jurisdiction.
(e) Expenses– Expenses incurred by the Company that do not specifically relate to an individualfund are generally allocated to the funds within the Company on a pro rata basis by relativenet assets.
(f) Foreign Transactions–The books and records of each Fund are maintained in U.S. dollars andtransactions denominated in foreign currencies are recorded in each Fund’s records at the rateprevailing when earned or recorded. Asset and liability accounts that are denominated inforeign currencies are adjusted daily to reflect current exchange rates and any unrealized gain(loss) is included in Net change in unrealized appreciation/depreciation on translation of assetsand liabilities denominated in foreign currencies in each Fund’s Statement of Operations. Theresultant exchange gains and losses upon settlement of such transactions are included in Netrealized gain (loss) on foreign currency related transactions in each Fund’s Statement ofOperations. The Fund do not isolate that portion of the results of operations arising as a resultof changes in the foreign exchange rates from the changes in market prices of the securities.
The Fund uses foreign currency exchange contracts to facilitate transactions in foreigndenominated securities. Losses from these transactions may arise from changes in the valueof the foreign currency or if the counterparties do not perform under the contracts’ terms.
(g) Forward Foreign Currency Exchange Contracts– The Fund may enter into forward foreigncurrency exchange contracts in order to reduce exposure to changes in foreign currencyexchange rates on foreign portfolio holdings, or gain or reduce exposure to foreign currencysolely for investment purposes. A forward foreign currency exchange contract is acommitment to purchase or sell a foreign currency at a future date at a negotiated rate. Thecontracts are valued daily at forward exchange rates and any unrealized gain (loss), ifapplicable, is included in Net change in unrealized appreciation/depreciation on foreigncurrency exchange contracts in the Fund’s Statement of Operations. The gain (loss) arisingfrom the difference between the U.S. dollar cost of the original contract and the value of theforeign currency in U.S. dollars upon closing of such contracts is included, if applicable, in Netrealized gain on foreign currency exchange contracts in the Fund’s Statement of Operations.
13
Notes to Financial Statements (unaudited)(continued)
100194_Lord Abbett_SAR.qxp_94026 8/14/20 3:04 AM Page 13
(h) Repurchase Agreements– The Fund may enter into repurchase agreements with respect tosecurities. A repurchase agreement is a transaction in which a fund acquires a security andsimultaneously commits to resell that security to the seller (a bank or securities dealer) at an agreed- upon price on an agreed- upon date. The Fund requires at all times that the repurchaseagreement be collateralized by cash, or by securities of the U.S. Government, its agencies, itsinstrumentalities, or U.S. Government sponsored enterprises having a value equal to, or inexcess of, the value of the repurchase agreement (including accrued interest). If the seller ofthe agreement defaults on its obligation to repurchase the underlying securities at a timewhen the fair value of these securities has declined, the Fund may incur a loss upon dispositionof the securities.
(i) Fair Value Measurements–Fair value is defined as the price that the Fund would receiveupon selling an investment or transferring a liability in an orderly transaction to anindependent 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 ofunobservable inputs and to establish classification of fair value measurements for disclosurepurposes. Inputs refer broadly to the assumptions that market participants would use inpricing the asset or liability, including assumptions about risk—for example, the risk inherentin a particular valuation technique used to measure fair value (such as a pricing model) and/orthe risk inherent in the inputs to the valuation technique. Inputs may be observable orunobservable. Observable inputs reflect the assumptions market participants would use inpricing the asset or liability. Observable inputs are based on market data obtained from sourcesindependent of the reporting entity. Unobservable inputs reflect the reporting entity’s ownassumptions about the assumptions market participants would use in pricing the asset orliability. Unobservable inputs are based on the best information available in the circumstances.The three- tier hierarchy classification is determined based on the lowest level of inputs that issignificant to the fair value measurement, and is summarized in the three broad Levels listedbelow:
• Level 1 – unadjusted quoted prices in active markets for identical investments;
• Level 2 – other significant observable inputs (including quoted prices for similarinvestments, interest rates, prepayment speeds, credit risk, etc.); and
• Level 3 – significant unobservable inputs (including the Fund’s own assumptions indetermining the fair value of investments).
A summary of inputs used in valuing the Fund’s investments as of June 30, 2020 and, ifapplicable, Level 3 rollforwards for the six months then ended is included in the Fund’sSchedule of Investments.
Changes in valuation techniques may result in transfers into or out of an assigned level withinthe three- tier hierarchy. The inputs or methodology used for valuing securities are notnecessarily an indication of the risk associated with investing in those securities.
3. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Management FeeThe Company has a management agreement with Lord Abbett, pursuant to which Lord Abbettsupplies the Fund with investment management services and executive and other personnel,provides office space and pays for ordinary and necessary office and clerical expenses relating toresearch and statistical work and supervision of the Fund’s investment portfolio.14
Notes to Financial Statements (unaudited)(continued)
100194_Lord Abbett_SAR.qxp_94026 8/14/20 3:04 AM Page 14
The management fee is based on the Fund’s average daily net assets at the following annual rate:
First $200 million .75%Next $300 million .65%Over $500 million .50%
For the six months ended June 30, 2020, the effective management fee was at an annualized rateof .74% of the Fund’s average daily net assets.
In addition, Lord Abbett provides certain administrative services to the Fund pursuant to anAdministrative Services Agreement in return for a fee at an annual rate of .04% of the Fund’saverage daily net assets.
The Company, on behalf of the Fund, has entered into services arrangements with certain insurancecompanies. Under these arrangements, certain insurance companies will be compensated up to.25% of the average daily net asset value ("NAV") of the Fund’s Class VC Shares held in theinsurance company’s separate account to service and maintain the Variable Contract owners’accounts. This amount is included in Non 12b-1 service fees on the Statement of Operations. TheFund may also compensate certain insurance companies, third- party administrators and otherentities for providing recordkeeping, sub- transfer agency and other administrative services to theFund. This amount is included in Shareholder servicing on the Statement of Operations.
One 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 and paid at least semi-annually. Taxablenet realized gains from investment transactions, reduced by allowable capital loss carryforwards, ifany, are declared and distributed to shareholders at least annually. The capital loss carryforwardamount, if any, is available to offset future net capital gains. Dividends and distributions toshareholders are recorded on the ex- dividend date. The amounts of dividends and distributionsfrom net investment income and net realized capital gains are determined in accordance withfederal income tax regulations, which may differ from U.S. GAAP. These book/tax differences areeither considered temporary or permanent in nature. To the extent these differences are permanentin nature, such amounts are reclassified within the components of net assets based on their federaltax basis treatment; temporary differences do not require reclassification. Dividends anddistributions that exceed earnings and profits for tax purposes are reported as a tax return ofcapital.
The tax character of distributions paid during the six months ended June 30, 2020 and fiscal yearended December 31, 2019 was as follows:
Six Months Ended 6/30/2020 Year Ended (unaudited) 12/31/2019Distributions paid from:Ordinary income $ – $2,394,211Net long- term capital gains – 4,480,640
Total distributions paid $ – $6,874,851
15
Notes to Financial Statements (unaudited)(continued)
100194_Lord Abbett_SAR.qxp_94026 8/14/20 3:04 AM Page 15
As of June 30, 2020, the aggregate unrealized security gains and losses on investments and otherfinancial instruments based on cost for U.S. federal income tax purposes were as follows:
Tax cost $226,104,602Gross unrealized gain 16,124,083Gross unrealized loss (28,251,434)
Net unrealized security loss $ (12,127,351)
The difference between book- basis and tax- basis unrealized gains (losses) is attributable to the taxtreatment of wash sales.
5. PORTFOLIO SECURITIES TRANSACTIONS
Purchases and sales of investment securities (excluding short- term investments) for the six monthsended June 30, 2020 were as follows:
Purchases Sales $76,560,845 $88,279,898
There were no purchases or sales of U.S. Government securities for the six months ended June 30, 2020.
The Fund is permitted to purchase and sell securities ( “cross- trade”) from and to other Lord Abbettfunds or client accounts pursuant to procedures approved by the Board in compliance with Rule17a-7 under the Act (the “Rule”). Each cross- trade is executed at a fair market price in compliancewith provisions of the Rule. For the six months ended June 30, 2020, the Fund engaged in cross- trades purchases of $668,364, and sales of $748,845 which resulted in net realized losses of $89,256.
6. DISCLOSURES ABOUT OFFSETTING ASSETS AND LIABILITIES
The Financial Accounting Standards Board (“FASB”) requires disclosures intended to help betterassess the effect or potential effect of offsetting arrangements on a fund’s financial position. Thefollowing tables illustrate gross and net information about recognized assets and liabilities eligiblefor offset in the Statement of Assets and Liabilities; and disclose such amounts subject to anenforceable master netting agreement or similar agreement, by counterparty. A master nettingagreement is an agreement between a fund and a counterparty which provides for the netsettlement of amounts owed under all contracts traded under that agreement, as well as cashcollateral, through a single payment by one party to the other in the event of default on ortermination of any one contract. The Fund’s accounting policy with respect to balance sheetoffsetting is that, absent an event of default by the counterparty or a termination of theagreement, the master netting agreement does not result in an offset of reported amounts offinancial assets and liabilities in the Statement of Assets and Liabilities across transactions betweenthe Fund and the applicable counterparty: Gross Amounts Net Amounts of Offset in the Assets Presented Gross Amounts of Statement of Assets in the Statement ofDescription Recognized Assets and Liabilities Assets and LiabilitiesRepurchase Agreements $1,030,026 $ – $1,030,026
Total $1,030,026 $ – $1,030,026
16
Notes to Financial Statements (unaudited)(continued)
100194_Lord Abbett_SAR.qxp_94026 8/14/20 3:04 AM Page 16
Net Amounts of Assets Amounts Not Offset in the Presented in Statement of Assets and Liabilities the Statement Cash Securities of Assets and Financial Collateral Collateral NetCounterparty Liabilities Instruments Received(a) Received(a) Amount(b)Fixed Income Clearing Corp. $1,030,026 $ – $ – $(1,030,026) $ –
Total $1,030,026 $ – $ – $(1,030,026) $ –(a) Collateral disclosed is limited to an amount not to exceed 100% of the net amount of assets presented in the Statement of Assets
and Liabilities, for each respective counterparty.(b)Net amount represents the amount owed to the Fund by the counterparty as of June 30, 2020.
7. DIRECTORS’ REMUNERATION
The Company’s officers and one Director, who are associated with Lord Abbett, do not receive anycompensation from the Company for serving in such capacities. Independent Directors’ fees areallocated 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 mustdefer 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 inthe funds. Such amounts and earnings accrued thereon are included in Directors’ fees on theStatement of Operations and in Directors’ fees payable on the Statement of Assets and Liabilitiesand are not deductible for U.S. federal income tax purposes until such amounts are paid.
8. EXPENSE REDUCTIONS
The Company has entered into an arrangement with its transfer agent and custodian, whereby creditsrealized as a result of uninvested cash balances are used to reduce a portion of the Fund’s expenses.
9. LINE OF CREDIT
For the period ended June 30, 2020, the Fund and certain other funds managed by Lord Abbett(collectively, the “Participating Funds”) entered into a syndicated line of credit facility with variouslenders for $1.17 billion (the “Syndicated Facility”) whereas State Street Bank and Trust Company(“SSB”) participated as a lender and as agent for the lenders. The Participating Funds were subjectto graduated borrowing limits of one third of Fund net assets (if Fund net assets are less than $750million), $250 million, $300 million, $350 million, $500 million, or $1 billion, based on pastborrowings and likelihood of future borrowings, among other factors. Effective August 6, 2020, theParticipating Funds are subject to graduated borrowing limits of one-third of Fund net assets (ifFund net assets are less than $750 million), $250 million, $300 million, $600 million, or $900million, based on past borrowings and likelihood of future borrowings, among other factors.
For the period ended June 30, 2020, the Participating Funds were party to an additional line ofcredit facility with SSB for $330 million (the “Bilateral Facility”), $250 million committed and $80million uncommitted. Under the Bilateral Facility, the Participating Funds are subject to graduatedborrowing limits of one-third of Fund net assets (if net assets are less than $750 million), $250million, $300 million, or $330 million, based on past borrowings and likelihood of futureborrowings, among other factors.
17
Notes to Financial Statements (unaudited)(continued)
$2 1 (
$ (
P
G N O A G S i
R a A $ $ $
$ $ $
Fo (c le (“ g m a Fu le bo
Fo fa u li m fa
Th as
Fo
100194_Lord Abbett_SAR.qxp_94026 8/14/20 3:04 AM Page 17
The Syndicated Facility and the Bilateral Facility are to be used for temporary or emergencypurposes as an additional source of liquidity to satisfy redemptions.
For the six months ended June 30, 2020, the Fund did not utilize the Facilities.
10. INTERFUND LENDING PROGRAM
Pursuant to an exemptive order issued by the U.S. Securities and Exchange Commission (“SECexemptive order”), certain registered open- end management investment companies managed byLord Abbett, including the Fund, participate in a joint lending and borrowing program (the “InterfundLending Program”). The SEC exemptive order allows the Funds to borrow money from and lendmoney to each other for temporary or emergency purposes subject to the limitations and conditions.
For the six months ended June 30, 2020, the Fund did not participate as a borrower or lender in theInterfund Lending Program.
11. CUSTODIAN AND ACCOUNTING AGENT
SSB is the Company’s custodian and accounting agent. SSB performs custodial, accounting andrecordkeeping functions relating to portfolio transactions and calculating the Fund’s NAV.
12. SECURITIES LENDING AGREEMENT
The Fund has established a securities lending agreement with Citibank, N.A. for the lending ofsecurities to qualified brokers in exchange for securities or cash collateral equal to at least themarket value of securities loaned, plus interest, if applicable. Cash collateral is invested in anapproved money market fund. In accordance with the Fund’s securities lending agreement, themarket value of securities on loan is determined each day at the close of business and anyadditional collateral required to cover the value of securities on loan is delivered to the Fund on thenext business day. As with other extensions of credit, the Fund may experience a delay in therecovery of their securities or incur a loss should the borrower of the securities breach itsagreement with the Fund or become insolvent at a time when the collateral is insufficient to coverthe cost of repurchasing securities on loan. Such income earned from securities lending is includedin Securities Lending Income on the Statement of Operations.
As of June 30, 2020, the market value of securities loaned and collateral received for the Fund wasas follows:
Market Value of Securities Loaned Collateral Received $209,619 $217,500
13. INVESTMENT RISKS
The Fund is subject to the general risks and considerations associated with equity investing, as wellas the particular risks associated with value and mid- sized company stocks. The value of aninvestment will fluctuate in response to movements in the equity securities market in general andto the changing prospects of individual companies in which the Fund invests. The market may failto recognize for a long time the intrinsic value of particular value stocks the Fund may hold. Valueinvesting also is subject to the risk that the company judged to be undervalued may actually beappropriately priced or even overpriced. The mid- sized company stocks in which the Fund investsmay be less able to weather economic shifts or other adverse developments than those of larger,more established companies. Although investing in mid- sized companies offers the potential forabove average returns, these companies may not succeed and the value of their stock could decline
18
Notes to Financial Statements (unaudited)(continued)
100194_Lord Abbett_SAR.qxp_94026 8/14/20 3:04 AM Page 18
19
C $ $
significantly. Mid- sized companies also may fall out of favor relative to larger companies in certainmarket cycles, causing the Fund to incur losses or under perform. In addition, if the Fund’sassessment of a company’s value or prospects for exceeding earnings expectations or marketconditions is wrong, the Fund could suffer losses or produce poor performance relative to otherfunds, even in a rising market.
Due to the Fund’s investment exposure to foreign companies and American Depositary Receipts,the Fund may experience increased market, industry and sector liquidity, currency, political,information, and other risks. The securities of foreign companies also may be subject to inadequateexchange control regulations, the imposition of economic sanctions or other governmentrestrictions, higher transaction and other costs, and delays in settlement to the extent they aretraded on non- U.S. exchanges or markets.
Geopolitical and other events (e.g., wars, terrorism, natural disasters, epidemics or pandemics suchas the COVID-19 outbreak which began in late 2019) may disrupt securities markets and adverselyaffect global economies and markets, thereby decreasing the value of the Fund’s investments.Market disruptions can also prevent the Fund from implementing its investment strategies andachieving its investment objective.
These factors can affect the Fund’s performance
14. SUMMARY OF CAPITAL TRANSACTIONS
Transactions in shares of capital stock were as follows:
Six Months Ended June 30, 2020 Year Ended (unaudited) December 31, 2019Shares sold 416,779 1,487,614Reinvestment of distributions – 289,623Shares reacquired (1,066,252) (2,487,867)
Decrease (649,473) (710,630)
Notes to Financial Statements (unaudited)(concluded)
100194_Lord Abbett_SAR.qxp_94026 8/14/20 3:04 AM Page 19
Liquidity Risk Management ProgramPursuant to Rule 22e-4 under the 1940 Act, the Fund has adopted a Liquidity Risk ManagementProgram and Policy (“Program”). The Program is designed to assess, manage and periodically reviewthe Fund’s liquidity risk. Liquidity risk is defined under Rule 22e-4 as the risk that the Fund could notmeet redemption requests without significant dilution of remaining investors’ interests in the Fund.
The Board has appointed Lord Abbett as the administrator for the Fund’s Program. At the May 28-29, 2020 meeting, Lord Abbett provided the Board with a report addressing the operation of theProgram and assessing its adequacy and effectiveness of implementation for the periodDecember 1, 2018 through February 28, 2020. Lord Abbett reported that the Program operatedeffectively during the period. In particular, Lord Abbett reported that: the Fund did not breach its15% limit on illiquid investments at any point during the period and all regulatory reportingrelated to Rule 22e-4 was completed on time and without issue during the period.
There can be no assurance that the Program will achieve its objectives in the future. Please referto the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk andother principal risks to which an investment in the Fund may be subject.
HouseholdingThe Company has adopted a policy that allows it to send only one copy of the Fund’s prospectus,proxy material, annual report and semiannual report to certain shareholders residing at the same“household.” This reduces Fund expenses, which benefits you and other shareholders. If you needadditional 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 youraccount number or numbers to Lord Abbett Family of Funds, P.O. Box 219336, Kansas City, MO 64121.
Proxy Voting Policies, Procedures and RecordsA description of the policies and procedures that Lord Abbett uses to vote proxies related to theFund’s portfolio securities, and information on how Lord Abbett voted the Fund’s proxies duringthe 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 andExchange Commission’s (“SEC”) Website at www.sec.gov.
Shareholder Reports and Quarterly Portfolio DisclosureThe Fund is required to file its complete schedule of portfolio holdings with the SEC for its first andthird fiscal quarters as an attachment to Form N- PORT. Copies of the filings are available withoutcharge, upon request on the SEC’s Website at www.sec.gov and may be available by calling LordAbbett at 888-522-2388.
20
100194_Lord Abbett_SAR.qxp_94026 8/17/20 9:28 PM Page 20
This page is intentionally left blank.
100194_Lord Abbett_SAR.qxp_94026 8/14/20 3:04 AM Page 21
This page is intentionally left blank.
100194_Lord Abbett_SAR.qxp_94026 8/14/20 3:04 AM Page 22
100194_Lord Abbett_SAR.qxp_94026 8/14/20 3:04 AM Page IBC3
This
report
, whe
n not
used
for t
he ge
neral
infor
matio
n of
share
holde
rs of
the Fu
nd, is
to be
distr
ibuted
only
if prec
eded
or ac
comp
anied
by a
curre
nt fun
d pros
pectu
s.
Lord
Abbe
tt mu
tual f
und s
hares
are d
istrib
uted b
yLO
RD AB
BETT
DIST
RIBUT
OR LL
C.
Lor
d A
bbet
t Se
ries
Fun
d, I
nc.
Mid
Cap
Sto
ck P
ortf
olio
LASF
MCV-3
(08/20
)
We
Recy
cle
This
do
cum
ent
is p
rin
ted
on
recy
cled
pap
er.
____
____
____
____
____
____
____
____
____
Go P
aper
less
!V
isit
ww
w.lo
rdab
bet
t.co
m to
lear
n h
ow to
rece
ive
all y
ou
r sh
areh
old
er c
om
mu
nic
atio
ns
on
line.
100194_Lord Abbett_SAR.qxp_94026 8/14/20 3:04 AM Page BC4