LO RD ABB ETT ANNUAL REPOR T - Pacific Life · 2019-03-12 · LO RD ABB ETT ANNUAL REPOR T For the fiscal year ended December 31, 2018 Lord Abbett Series Fund—Developing Growth

LORD ABBETTANNUAL REPORT

For the fiscal year ended December 31, 2018

Lord AbbettSeries Fund—Developing Growth Portfolio

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Table of Contents1 A Letter to Shareholders

5 Investment Comparison

6 Information About Your Fund’s Expenses and Holdings Presented by Sector

8 Schedule of Investments

11 Statement of Assets and Liabilities

12 Statement of Operations

13 Statements of Changes in Net Assets

14 Financial Highlights

16 Notes to Financial Statements

24 Report of Independent Registered Public Accounting Firm

25 Supplemental Information to Shareholders

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For the fiscal year ended December 31,2018, the Fund returned 4.88%, reflectingperformance at the net asset value (NAV)of Class VC shares with all distributionsreinvested, compared to its benchmark, theRussell 2000® Growth Index,1 whichreturned –9.31% over the same period.

Domestic equity returns were negativeover the past year, with large cap stocks, asrepresented by the S&P 500® Index,2

falling –4.38% during the period, whilesmall cap stocks, as represented by theRussell 2000® Index,3 were down –11.01%.

During the period, there were several market- moving events. Notably, Congresspassed the largest rewrite of the U.S. taxcode in decades, which went into effect inJanuary 2018. The tax bill reduced thecorporate tax rate from 35% to 21% andallowed for a one- time repatriation tax of15.5%, rather than the standardrepatriation tax rate of 35%. In June 2018,the White House announced its intent toimpose additional tariffs on $200 billionworth of Chinese goods on top of the $50billion previously announced. The

Lord Abbett Series Fund — Developing Growth PortfolioAnnual ReportFor the fiscal year ended December 31, 2018

Dear Shareholders: We are pleased to provide youwith this overview of the performance of LordAbbett Series Fund — Developing Growth Portfoliofor the fiscal year ended December 31, 2018. On thispage and the following pages, we discuss the majorfactors that influenced fiscal year performance. Foradditional information about the Fund, please visitour website at www.lordabbett.com, where you alsocan access the quarterly commentaries that provideupdates on the Fund’s performance and otherportfolio related updates.

Thank you for investing in Lord Abbett mutualfunds. We value the trust that you place in us andlook forward to serving your investment needs inthe years to 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.

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aggressive U.S. trade posture continuedinto September with trade tensionsmounting between the U.S. and China. InDecember, the White House announced atrade truce between the U.S. and Chinafollowing a meeting between PresidentTrump and President Xi Jinping at the G20summit. The U.S. agreed to maintain a 10%tariff rate on $200 billion worth of Chineseimports at the start of 2019 as opposed tothe originally planned 25% tariff rate. Inreturn, China agreed to purchase asubstantial amount of U.S. agriculture,industrial, and energy products to furtherreduce the trade imbalance. While theimpact has yet to fully be realized, manycorporations anticipate that the retaliatorytariffs will weigh on profits. Tradediscussions between Mexico, Canada, andthe U.S., however, took a more favorableturn as the negotiations resulted in arevised version of the North American FreeTrade Agreement (NAFTA) called the U.S.–Mexico–Canada Agreement.

In March 2018, the Federal Reserve (the“Fed”) raised its target for short- terminterest rates by 0.25%, to a range of1.50%–1.75%, and followed with ratehikes of 0.25% at each of its June,September, and December meetings,raising the target range to 2.25%–2.50%.Amid rising concerns surroundingescalating trade tensions, slowing globalgrowth, and increasing interest rates, theNasdaq experienced the largest monthlydrop since 2008 in October 2018. Followingthe prior month’s volatility, domestic

equity markets rallied in November andpartially reversed October’s losses, howeverthe S&P 500® returned to negativeterritory in December, posting its worstmonth since February 2009.

The leading contributor to the Fund’srelative performance during the reportingperiod was security selection in theinformation technology sector. Within thissector, the Fund’s holdings of Twilio, Inc., aprovider of a cloud- based communicationssoftware platform, contributed most torelative performance. Shares of Twiliobenefited from the firm’s ability tocapitalize on its vast and growingaddressable market, through theintroduction of new products like Flex, acloud contact application, and expansionof the firm’s footprint with its acquisitionof SendGrid, Inc. Another contributor torelative performance within this sectorduring the reporting period was the Fund’sposition in Everbridge, Inc., a developer ofcritical event management software andapplications. Shares of Everbridgeappreciated as the company reportedsuccessive quarters of robust revenue andearnings growth, while continuing toexpand internationally and completing akey acquisition of Unified MessagingSystems ASA.

Security selection within the healthcare sector also positively impacted theFund’s relative performance during thereporting period. Within this sector, theFund’s holdings of Foundation Medicine,Inc., a molecular diagnostic company,


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contributed as Roche Holding AG acquiredthe firm in an effort to expand Roche’sexisting capabilities.

The leading detractors from the Fund’sperformance relative to the benchmarkduring the reporting period were securityselection in and an underweight to thefinancials sector. Within this sector, theFund’s position in Western AllianceBancorporation, a provider of variousbanking services, detracted. Shares ofWestern Alliance Bancoporation declined asinvestors were concerned about a possiblemoderation in growth due to increasedcompetition for loans among banks and non- banks. Another detractor within thesector was the Fund’s position inCenterState Banks, Inc., a bank holdingcompany. U.S. banks, like Western Allianceand CenterState, faced headwinds duringthe latter half of the year as investorsexpected commercial and industrial loangrowth to slow, while the industrycontinued to face tougher competition from non- bank lenders and corporate clients.

Security selection in thecommunication services (formerlytelecommunication services) sector alsodetracted from the Fund’s performancerelative to the benchmark during thereporting period. Within this sector, theFund’s holdings of Eventbrite, Inc., anoperator of a self- service online ticketingplatform, detracted. Following theSeptember initial public offering, shares ofEventbrite declined during the period asinvestors were concerned about valuationand the pending expiration of a sharelockup. Additionally, though it beatconsensus estimates in its first publicreporting, Eventbrite’s performance wasnot of the magnitude that investorsexpected.

The Fund’s portfolio is activelymanaged and, therefore, its holdings andthe weightings of a particular issuer orparticular sector as a percentage ofportfolio assets are subject to change.Sectors may include many industries.

1 The Russell 2000® Growth Index measures theperformance of those Russell 2000® companies withhigher price- to- book ratios and higher forecastedgrowth values.

2 The S&P 500® Index is widely regarded as thestandard for measuring large cap U.S. stock marketperformance and includes a representative sample ofleading companies in leading industries.

3 The Russell 2000® Index measures theperformance of the 2,000 smallest companies in theRussell 3000 Index, which represents approximately10% of the total market capitalization of the Russell3000 Index.

Unless otherwise specified, indexes reflect totalreturn, with all dividends reinvested. Indexes areunmanaged, do not reflect the deduction of fees orexpenses, and are not available for direct investment.

Important Performance and Other Information Performance data quoted in the following pagesreflect past performance and are no guarantee offuture results. Current performance may behigher or lower than the performance quoted.The investment return and principal value of aninvestment in the Fund will fluctuate so thatshares, on any given day or when redeemed, maybe worth more or less than their original cost.You can obtain performance data current to themost recent month end by calling Lord Abbett at888-522-2388 or referring to www.lordabbett.com.


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During certain periods shown, expense waivers andreimbursements were in place. Without such expensewaivers and reimbursements, the Fund’s returnswould have been lower.

The annual commentary above discusses the views ofthe Fund’s management and various portfolioholdings of the Fund as of December 31, 2018. Theseviews and portfolio holdings may have changed afterthis date. Information provided in the commentary isnot a recommendation to buy or sell securities.Because the Fund’s portfolio is actively managed andmay change significantly, the Fund may no longerown the securities described above or may haveotherwise changed its position in the securities. For

more recent information about the Fund’s portfolioholdings, please visit www.lordabbett.com.

A Note about Risk: See Notes to FinancialStatements for a discussion of investment risks. For amore detailed discussion of the risks associated withthe Fund, please see the Fund’s prospectus.

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

The Fund serves as an underlying investment vehiclefor variable annuity contracts and variable lifeinsurance policies.


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Investment ComparisonBelow is a comparison of a $10,000 investment in Class VC shares with the sameinvestment in the Russell 2000® Growth Index, assuming reinvestment of all dividendsand distributions. The Fund’s shares are sold only to insurance company separate accountsthat fund certain variable annuity and variable life contracts. The line graph comparisondoes not reflect the sales charges or other expenses of these contracts. If those salescharges and expenses were reflected, returns would be lower. The graph and performancetable below do not reflect the deduction of taxes that a shareholder would pay on Funddistributions or the redemption of Fund shares. During the period, expenses of the Fundhave been waived or reimbursed by Lord Abbett; without such waiver or reimbursementof expenses, the Fund’s returns would have been lower. Past performance is noguarantee of future results.

Average Annual Total Returns for thePeriods Ended December 31, 2018

1 Year 5 Years Life of ClassClass VC2 4.88% 4.79% 12.14%

$23,575

$27,000

Apr 30, 10 14 18171615131210 11

5,000

10,000

15,000

20,000

25,000

$30,000 The Fund (Class VC shares) at net asset valueRussell 2000® Growth Index1

1 Performance for the unmanaged index does not reflectany fees or expenses. The performance of the index is notnecessarily representative of the Fund’s performance.Performance for the index began on May 1, 2010.

2 The Class VC shares commenced operations on April 23,2010. Performance for the Class began on May 1, 2010.


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 (July 1, 2018 through December 31, 2018).

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, together withthe amount you invested, to estimate the expenses that you paid over the period. Simplydivide 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 headingtitled “Expenses Paid During Period 7/1/18 – 12/31/18” to estimate the expenses you paidon 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 andother funds. To do so, compare this 5% hypothetical example with the 5% hypotheticalexamples that appear in the shareholder reports of the other funds.

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See Notes to Financial Statements. 7

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† ________ __________ __________

7/1/18 - 7/1/18 12/31/18 12/31/18 ________ __________ __________Class VCActual $1,000.00 $ 852.30 $4.44Hypothetical (5% Return Before Expenses) $1,000.00 $1,020.42 $4.84† Net expenses are equal to the Fund’s annualized expense ratio of 0.95%, multiplied by the average account value over the

period, multiplied by 184/365 (to reflect one- half year period).

Sector* %**Communication Services 3.79%Consumer Discretionary 19.23%Consumer Staples 3.25%Energy 0.93%Financials 3.05%Health Care 26.94%Industrials 14.13%Information Technology 25.49%Repurchase Agreement 3.19%Total 100.00%

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

Portfolio Holdings Presented by SectorDecember 31, 2018


8 See Notes to Financial Statements.

Schedule of InvestmentsDecember 31, 2018

Fair ValueInvestments Shares (000)


COMMON STOCKS 96.78%

Aerospace & Defense 3.87%Aerovironment, Inc.* 16,099 $ 1,094

Axon Enterprise, Inc.* 12,987 568

Curtiss- Wright Corp. 4,494 459

Total 2,121

Auto Components 0.76%Fox Factory Holding Corp.* 7,075 417

Banks 2.79%CenterState Bank Corp. 23,896 503

Webster Financial Corp. 8,637 426

Western Alliance Bancorp* 7,252 286

Wintrust Financial Corp. 4,744 315

Total 1,530

Biotechnology 11.11%Agios Pharmaceuticals, Inc.* 4,595 212

Allogene Therapeutics, Inc.* 9,963 268

Amarin Corp. plc ADR* 23,684 322

Argenx SE ADR* 4,560 438

Audentes Therapeutics, Inc.* 6,756 144

Blueprint Medicines Corp.* 7,928 427

CareDx, Inc.* 23,206 583

Denali Therapeutics, Inc.* 20,015 414

Emergent BioSolutions, Inc.* 7,579 449

FibroGen, Inc.* 3,797 176

Immunomedics, Inc.* 13,577 194

Loxo Oncology, Inc.* 5,592 783

Myovant Sciences Ltd. (United Kingdom)*(a) 23,329 383

Repligen Corp.* 14,719 776

Sage Therapeutics, Inc.* 2,605 250

Sarepta Therapeutics, Inc.* 2,408 263

Total 6,082

Building Products 1.17%Trex Co., Inc.* 10,771 639

Capital Markets 0.25%Evercore, Inc. Class A 1,913 $ 137

Communications Equipment 0.25%Acacia Communications, Inc.* 3,571 136

Construction & Engineering 0.78%NV5 Global, Inc.* 7,050 427

Diversified Consumer Services 6.61%Bright Horizons Family Solutions, Inc.* 7,722 861

Chegg, Inc.* 45,921 1,305

Grand Canyon Education, Inc.* 10,523 1,012

Strategic Education, Inc. 3,461 392

Weight Watchers International, Inc.* 1,320 51

Total 3,621

Electrical Equipment 1.66%Generac Holdings, Inc.* 18,290 909

Energy Equipment & Services 0.93%Cactus, Inc. Class A* 18,529 508

Entertainment 1.84%Live Nation Entertainment, Inc.* 3,603 177

World Wrestling Entertainment, Inc. Class A 11,128 832

Total 1,009

Food & Staples Retailing 2.00%BJ’s Wholesale Club Holdings, Inc.* 27,906 618

Sprouts Farmers Market, Inc.* 20,195 475

Total 1,093

Food Products 1.25%Calavo Growers, Inc. 9,377 684

Health Care Equipment & Supplies 11.45%Glaukos Corp.* 21,400 1,202

Haemonetics Corp.* 5,148 515

Inogen, Inc.* 1,119 139



F V

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Schedule of Investments (continued)December 31, 2018



Health Care Equipment & Supplies (continued)Insulet Corp.* 8,953 $ 710

iRhythm Technologies, Inc.* 11,974 832

Masimo Corp.* 7,368 791

Penumbra, Inc.* 8,820 1,078

Tandem Diabetes Care, Inc.* 26,384 1,002

Total 6,269

Health Care Providers & Services 1.99%Guardant Health, Inc.* 11,245 423

HealthEquity, Inc.* 11,128 664

Total 1,087

Health Care Technology 1.46%Inspire Medical Systems, Inc.* 12,278 519

Teladoc, Inc.* 5,613 278

Total 797

Hotels, Restaurants & Leisure 3.69%Dave & Buster’s Entertainment, Inc. 9,559 426

Planet Fitness, Inc. Class A* 29,685 1,592

Total 2,018

Household Durables 2.28%iRobot Corp.* 9,219 772

Roku, Inc.* 8,241 252

Sonos, Inc.* 22,604 222

Total 1,246

Information Technology Services 3.44%EPAM Systems, Inc.* 3,716 431

Okta, Inc.* 12,943 826

Twilio, Inc. Class A* 7,023 627

Total 1,884

Interactive Media & Services 1.95%Cargurus, Inc.* 15,827 534

Eventbrite, Inc. Class A* 19,199 534

Total 1,068

Internet & Direct Marketing Retail 2.82%Etsy, Inc.* 28,785 $ 1,369

Stamps.com, Inc.* 1,114 174

Total 1,543

Leisure Products 0.93%Malibu Boats, Inc. Class A* 14,557 507

Machinery 3.60%Chart Industries, Inc.* 7,978 519

Proto Labs, Inc.* 4,276 482

RBC Bearings, Inc.* 7,394 969

Total 1,970

Pharmaceuticals 0.93%GW Pharmaceuticals plc ADR* 5,234 510

Professional Services 2.35%Insperity, Inc. 13,797 1,288

Semiconductors & Semiconductor Equipment 2.48%Inphi Corp.* 4,279 137

Monolithic Power Systems, Inc. 5,464 635

Semtech Corp.* 12,790 587

Total 1,359

Software 19.31%Alteryx, Inc. Class A* 10,860 646

Anaplan, Inc.* 12,651 336

Appian Corp.* 8,945 239

Coupa Software, Inc.* 11,574 728

Elastic NV* 4,959 355

Everbridge, Inc.* 17,660 1,002

Five9, Inc.* 24,752 1,082

HubSpot, Inc.* 5,186 652

Mimecast Ltd.* 18,294 615

New Relic, Inc.* 9,676 783

Paycom Software, Inc.* 4,590 562

Paylocity Holding Corp.* 8,611 519

RingCentral, Inc. Class A* 10,215 842

SendGrid, Inc.* 19,438 839



Schedule of Investments (concluded)December 31, 2018


Principal Fair Amount ValueInvestments (000) (000)

Software (continued)Trade Desk, Inc. (The) Class A* 6,779 $ 787

Zendesk, Inc.* 1,223 71

Zscaler, Inc.* 13,139 515

Total 10,573

Specialty Retail 1.37%At Home Group, Inc.* 22,412 418

National Vision Holdings, Inc.* 11,757 331

Total 749

Textiles, Apparel & Luxury Goods 0.77%Canada Goose Holdings, Inc. (Canada)*(a) 9,690 424

Trading Companies & Distributors 0.69%Air Lease Corp. 12,588 380

Total Common Stocks(cost $54,143,572) 52,985

SHORT- TERM INVESTMENT 3.19%

Repurchase AgreementRepurchase Agreement dated 12/31/2018, 1.45% due 1/2/2019 with Fixed Income Clearing Corp. collateralized by $1,840,000 of U.S. Treasury Note at 2.00% due 8/15/2025; value: $1,781,637; proceeds: $1,746,151(cost $1,746,010) $1,746 $ 1,746

Total Investments in Securities 99.97%(cost $55,889,582) 54,731

Other Assets in Excess of Liabilities 0.03% 18

Net Assets 100.00% $54,749

ADR American Depositary Receipt. * Non- income producing security. (a) Foreign security traded in U.S. dollars.

The following is a summary of the inputs used as of December 31, 2018 in valuing the Fund’s investmentscarried at fair value(1):

Level 1 Level 2 Level 3 TotalInvestment Type(2)(3) (000) (000) (000) (000)Common Stocks $52,985 $ – $ – $52,985Short-Term InvestmentRepurchase Agreement – 1,746 – 1,746

Total $52,985 $1,746 $ – $54,731

(1) Refer to Note 2(h) for a description of fair value measurements and the three- tier hierarchy of inputs. (2) See Schedule of Investments for fair values in each industry and identification of foreign issuers and/or geography. (3) There were no Level 1/Level 2 transfers during the fiscal year ended December 31, 2018.



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Statement of Assets and LiabilitiesDecember 31, 2018

ASSETS:Investments in securities, at fair value (cost $55,889,582) $54,730,505Receivables: Capital shares sold 150,274From advisor (See Note 3) 21,178Interest and dividends 5,304

Prepaid expenses 242Total assets 54,907,503

LIABILITIES:Payables: Management fee 35,509Capital shares reacquired 33,026Directors’ fees 3,552Fund administration 1,894

Accrued expenses 84,929Total liabilities 158,910

NET ASSETS $54,748,593

COMPOSITION OF NET ASSETS:Paid- in capital $56,547,658Total distributable earnings (loss) (1,799,065)Net Assets $54,748,593Outstanding shares (50 million shares of common stock authorized,

$.001 par value) 2,192,230Net asset value, offering and redemption price per share

(Net assets divided by outstanding shares) $24.97


Statement of OperationsFor the Year Ended December 31, 2018

Investment income:Dividends $ 148,575Interest 19,037Total investment income 167,612

Expenses:Management fee 410,572Non 12b-1 service fees 137,067Shareholder servicing 57,255Professional 40,655Reports to shareholders 29,618Fund administration 21,897Custody 10,910Directors’ fees 1,915Other 7,609Gross expenses 717,498Expense reductions (See Note 8) (1,332)Fees waived and expenses reimbursed (See Note 3) (203,141)

Net expenses 513,025

Net investment loss (345,413)

Net realized and unrealized gain (loss):Net realized gain on investments 8,921,414Net change in unrealized appreciation/depreciation on investments (8,760,781)Net realized and unrealized gain 160,633

Net Decrease in Net Assets Resulting From Operations $ (184,780)



$ 1 1

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5 4

2 2 1 1

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Statements of Changes in Net AssetsFor the Year Ended For the Year Ended

INCREASE IN NET ASSETS December 31, 2018 December 31, 2017Operations:Net investment loss $ (345,413) $ (178,826)Net realized gain on investments 8,921,414 3,225,081Net change in unrealized appreciation/depreciation on investments (8,760,781) 5,999,258

Net increase (decrease) in net assets resulting from operations (184,780) 9,045,513

Distributions to shareholders (8,137,620) –

Capital share transactions (See Note 13):Proceeds from sales of shares 30,041,903 9,093,518Reinvestment of distributions 8,137,608 –Cost of shares reacquired (14,766,834) (7,085,462)

Net increase in net assets resulting from capital share transactions 23,412,677 2,008,056

Net increase in net assets 15,090,277 11,053,569

NET ASSETS:Beginning of year $ 39,658,316 $28,604,747

End of year $ 54,748,593 $39,658,316

Accumulated net investment loss(1) $ – $ – (1) The SEC eliminated the requirement to disclose accumulated net investment loss in 2018. For the year ended

December 31, 2017, the accumulated net investment income was $(2,269).


Financial Highlights

Per Share Operating Performance: R ______________________________________________ _Distributions

toshareholders

Investment operations: from: ________________________________ ___________

Net asset Net Net Net asset value, investment realized and Total from Net value,

beginning of income unrealized investment realized end of period (loss)(a) gain (loss) operations gain period _____________________________________________________________________ _

12/31/2018 $28.18 $(0.21) $ 1.41 $ 1.20 $(4.41) $24.97 4 0 1 ( $ 112/31/2017 21.69 (0.13) 6.62 6.49 – 28.18 2 0 1 ( 3 112/31/2016 22.28 (0.07) (0.52) (0.59) – 21.69 ( 0 1 ( 2 212/31/2015 24.46 (0.14) (1.86) (2.00) (0.18) 22.28 ( 0 1 ( 2 112/31/2014 23.74 (0.16) 1.03 0.87 (0.15) 24.46 3 0 2 ( 1 2

(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.




Ratios to Average Net Assets: Supplemental Data: _______________________________________ _____________________

Total

expenses after waivers and/or Net Net assets, Portfolio

Total reimburse- Total investment end of turnover return(b) ments expenses income (loss) period rate

(%) (%) (%) (%) (000) (%) _ ________________________________________________________________________ $ $ 1 $ 1 $ $ 4.88 0.94 1.31 (0.63) $54,749 112 ( 6 – 2 29.92 0.90 1.38 (0.52) 39,658 103 ( – 2 (2.60) 0.90 1.51 (0.34) 28,605 222 2 (8.21) 0.90 1.56 (0.56) 28,882 197 0 2 3.71 0.90 2.02 (0.68) 17,494 235

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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 twelve separate portfolios.This report covers Developing Growth Portfolio (the “Fund”).

The Fund’s investment objective is long- term growth of capital. The Fund has Variable Contractclass shares (“Class VC Shares”), which are currently issued and redeemed only in connection withinvestments in, and payments under, variable annuity contracts and variable life insurance policiesissued 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.

16

Notes to Financial Statements


(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, 2015 through December 31,2018. 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 the Fund are maintained in U.S. dollars andtransactions denominated in foreign currencies are recorded in the 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), if applicable, is included in Net change in unrealized appreciation/depreciation ontranslation of assets and liabilities denominated in foreign currencies in the Fund’s Statementof Operations. The resultant exchange gains and losses upon settlement of such transactions,if applicable, are included in Net realized gain on foreign currency related transactions in theFund’s Statement of Operations. The Fund does not isolate that portion of the results ofoperations arising as a result of changes in the foreign exchange rates from the changes inmarket prices of the securities.

(g) 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.

(h) Fair Value Measurements– Fair value is defined as the price that the Fund would receive uponselling an investment or transferring a liability in an orderly transaction to an independentbuyer in the principal or most advantageous market of the investment. A three- tier hierarchy

17

Notes to Financial Statements (continued)


is used to maximize the use of observable market data and minimize the use of unobservableinputs and to establish classification of fair value measurements for disclosure purposes. Inputsrefer broadly to the assumptions that market participants would use in pricing the asset orliability, including assumptions about risk – for example, the risk inherent in a particularvaluation technique used to measure fair value (such as a pricing model) and/or the riskinherent 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 orliability. Observable inputs are based on market data obtained from sources independent of thereporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about theassumptions market participants would use in pricing the asset or liability. Unobservable inputsare based on the best information available in the circumstances. The three- tier hierarchyclassification is determined based on the lowest level of inputs that is significant to the fairvalue measurement, and is summarized in the three broad Levels listed below:

• Level 1 – unadjusted quoted prices in active markets for identical investments;

• Level 2 – other significant observable inputs (including quoted prices for 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 December 31, 2018 and, ifapplicable, Level 1/Level 2 transfers and Level 3 rollforwards for the fiscal year then ended isincluded in the Fund’s Schedule of Investments.

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

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

First $100 million .75%Over $100 million .50%

For the fiscal year ended December 31, 2018, the effective management fee, net of waivers, was atan annualized rate of 0.38% 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.

Effective May 1, 2018 and continuing through April 30, 2019, Lord Abbett has contractually agreedto waive its fees and reimburse expenses to the extent necessary to limit total net annual operating

18



expenses to an annual rate of 0.95%. This agreement may be terminated only upon the approval ofthe Board. Prior to May 1, 2018, Lord Abbett contractually agreed to waive its fees and reimburseexpenses to the extent necessary to limit total net annual operating expenses to an annual rate of0.90%.

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 distributions fromnet investment income and net realized capital gains are determined in accordance with federalincome tax regulations, which may differ from U.S. GAAP. These book/tax differences are eitherconsidered temporary or permanent in nature. To the extent these differences are permanent innature, such amounts are reclassified within the components of net assets based on their federal taxbasis treatment; temporary differences do not require reclassification. Dividends and distributionsthat exceed earnings and profits for tax purposes are reported as a tax return of capital.

The tax character of distributions paid during the fiscal year ended December 31, 2018 and fiscalyear ended December 31, 2017 was as follows:

Year Ended Year Ended 12/31/2018 12/31/2017Distributions paid from:

Ordinary income $1,901,367 $0Net long- term capital gains 6,236,253 0

Total distributions paid $8,137,620 $0

As of December 31, 2018, the components of accumulated losses on a taxbasis were as follows:

Temporary differences $ (450,576)Unrealized losses – net (1,348,489)

Total accumulated losses – net $(1,799,065)

At the 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 Fund incurred andwill elect to defer post- October capital losses of $447,024 during fiscal year 2018.

As of December 31, 2018, the aggregate unrealized security gains and losses on investments andother financial instruments based on cost for U.S. federal income tax purposes were as follows:

19



Tax cost $56,078,994

Gross unrealized gain 4,496,871Gross unrealized loss (5,845,360)

Net unrealized security loss $ (1,348,489)

The difference between book- basis and taxbasis unrealized gains (losses) is attributable to the taxtreatment of wash sales.

Permanent items identified during the fiscal year ended December 31, 2018 have been reclassifiedamong the components of net assets based on their tax basis treatment as follows:

Totaldistributable Paid- in

earnings (loss) Capital$461 $(461)

The permanent differences are primarily attributable to the tax treatment of certain distributions.

5. PORTFOLIO SECURITIES TRANSACTIONS

Purchases and sales of investment securities (excluding short- term investments) for the fiscal yearended December 31, 2018 were as follows:

Purchases Sales$72,259,373 $58,793,988

There were no purchases or sales of U.S. Government securities for the fiscal year ended December 31,2018.

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 fiscal year ended December 31, 2018, the Fund engaged in cross- trades purchases of $249,174 and sales of $2,805 which resulted in net realized gains of $1,350.

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:

20



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 Agreement $1,746,010 $ – $1,746,010

Total $1,746,010 $ – $1,746,010

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. $1,746,010 $ – $ – $(1,746,010) $ –

Total $1,746,010 $ – $ – $(1,746,010) $ –

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

(b)Net amount represents the amount owed to the Fund by the counterparty as of December 31, 2018.

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, wherebycredits realized as a result of uninvested cash balances are used to reduce a portion of the Fund’sexpenses.

9. LINE OF CREDIT

During the period ended August 8, 2018, the Fund and certain other funds managed by Lord Abbett(collectively, the “Participating Funds”) participated in a syndicated line of credit facility withvarious lenders for $600 million (the “Facility”), whereas State Street Bank and Trust Company(“SSB”) participates as a lender and as agent for the lenders. The Facility is to be used for temporaryor emergency purposes as an additional source of liquidity to satisfy redemptions. The ParticipatingFunds are subject to graduated borrowing limits of one-third of Fund assets (if Fund assets are lessthan $750 million), $250 million, $300 million, or $350 million, based on past borrowings andlikelihood of future borrowings. During the period ended August 8, 2018, the Fund did not utilizethe Facility.

For the period August 9, 2018 through December 20, 2018, the Participating Funds entered into anamended syndicated line of credit facility with various lenders for $1.06 billion (the “SyndicatedFacility”), whereas SSB participates as a lender and as agent for the lenders. Under the Syndicated

21

Notes to Financial Statements (continued) $

4 (

C

S


Facility, the Participating Funds are subject to graduated borrowing limits of one-third of Fundassets (if Fund assets are less than $750 million), $250 million, $300 million, $350 million, or $1billion, based on past borrowings and likelihood of future borrowings. Effective December 21, 2018,the Participating Funds entered into an amended Syndicated Facility with various lenders for $1.1billion based on the same terms as described above.

Effective August 9, 2018, the Participating Funds entered into an additional line of credit facilitywith SSB for $250 million (the “Bilateral Facility,” and together with the Syndicated Facility, the“Facilities”). Under the Bilateral Facility, each Participating Fund may borrow up to the lesser of$250 million or one-third of Fund assets. The Facilities are to be used for temporary or emergencypurposes to satisfy redemption requests and manage liquidity.

For the period from August 9, 2018 through December 31, 2018, the Fund did not utilize theFacilities.

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“Interfund Lending Program”). The SEC exemptive order allows the Funds to borrow money fromand lend money to each other for temporary or emergency purposes subject to the limitations andconditions. During the fiscal year ended December 31, 2018, the Fund did not participate as aborrower or lender in the Interfund 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. INVESTMENT RISKS

The Fund is subject to the general risks and considerations associated with equity investing. Thevalue of an investment will fluctuate in response to movements in the equity securities markets ingeneral and to the changing prospects of individual companies in which the Fund invests.

The Fund has particular risks associated with growth stocks. Different types of stocks shift in andout of favor over time depending on market and economic conditions. Growth stocks tend to bemore volatile than other stocks. Growth stocks are often more sensitive to marker fluctuationsthan other securities because their market prices are highly sensitive to future earningsexpectations. In addition, if the Fund’s assessment of a company’s potential for growth or marketconditions is wrong, it could suffer losses or produce poor performance relative to other funds,even in a favorable market. The Fund invests primarily in small- cap growth company stocks, whichtend to be more volatile and can be less liquid than other types of stocks. The shares of small and mid- sized companies tend to trade less frequently than those of larger, more establishedcompanies, which can adversely affect the pricing of these securities and the ability to sell thesesecurities in the future. Small- cap companies may also have more limited product lines, marketsor financial resources, and typically experience a higher risk of failure than large- cap companies.Because the Fund may invest a portion of its assets in foreign securities and American DepositaryReceipts, it may experience increased market, industry and sector, liquidity, currency, political,information and other risks. The securities of foreign companies also may be subject to inadequate

22



exchange 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.

These factors can affect the Fund’s performance.

13. SUMMARY OF CAPITAL TRANSACTIONS

Transactions in shares of capital stock were as follows:

Year Ended Year Ended December 31, 2018 December 31, 2017Shares sold 893,328 371,336Reinvestment of distributions 338,785 –Shares reacquired (447,289) (282,612)

Increase 784,824 88,724

23

Notes to Financial Statements (concluded)


24

Report of Independent Registered Public Accounting FirmTo the shareholders and the Board of Directors of Lord Abbett Series Fund, Inc.:

Opinion on the Financial Statements and Financial HighlightsWe have audited the accompanying statement of assets and liabilities, including the schedule ofinvestments, of the Developing Growth Portfolio, one of the portfolios constituting the Lord AbbettSeries Fund, Inc. (the “Fund”), as of December 31, 2018, the related statement of operations for theyear then ended, the statements of changes in net assets for each of the two years in the periodthen ended, the financial highlights for each of the five years in the period then ended, and therelated notes. In our opinion, the financial statements and financial highlights present fairly, in allmaterial respects, the financial position of the Developing Growth Portfolio of the Fund as ofDecember 31, 2018, and the results of its operations for the year then ended, the changes in itsnet assets for each of the two years in the period then ended, and the financial highlights for eachof the five years in the period then ended in conformity with accounting principles generallyaccepted in the United States of America.

Basis for OpinionThese financial statements and financial highlights are the responsibility of the Fund’smanagement. Our responsibility is to express an opinion on the Fund’s financial statements andfinancial highlights based on our audits. We are a public accounting firm registered with the PublicCompany Accounting Oversight Board (United States) (PCAOB) and are required to be independentwith respect to the Fund in accordance with the U.S. federal securities laws and the applicable rulesand regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whether the financialstatements and financial highlights are free of material misstatement, whether due to error or fraud.The Fund is not required to have, nor were we engaged to perform, an audit of its internal controlover financial reporting. As part of our audits we are required to obtain an understanding of internalcontrol over financial reporting but not for the purpose of expressing an opinion on the effectivenessof the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of thefinancial statements and financial highlights, whether due to error or fraud, and performingprocedures that respond to those risks. Such procedures included examining, on a test basis,evidence regarding the amounts and disclosures in the financial statements and financialhighlights. Our audits also included evaluating the accounting principles used and significantestimates made by management, as well as evaluating the overall presentation of the financialstatements and financial highlights. Our procedures included confirmation of securities owned asof December 31, 2018, by correspondence with the custodian and brokers. We believe that ouraudits provide a reasonable basis for our opinion.

DELOITTE & TOUCHE LLPNew York, New YorkFebruary 15, 2019

We have served as the auditor of one or more Lord Abbett Family of Funds’ investment companiessince 1932.


Basic Information About ManagementThe Board is responsible for the management of the business and affairs of the Company inaccordance with the laws of the State of Maryland. The Board elects officers who are responsiblefor the day- to- day operations of the Fund and who execute policies authorized by the Board. TheBoard also approves an investment adviser to the Fund and continues to monitor the cost andquality of the services the investment adviser provides, and annually considers whether to renewthe contract with the adviser. Generally, each Director holds office until his/her successor is electedand qualified or until his/her earlier resignation or removal, as provided in the Company’sorganizational documents.

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

Interested DirectorsMr. Sieg is affiliated with Lord Abbett and is an “interested person” of the Company as defined inthe Act. Mr. Sieg is director/trustee of each of the 13 investment companies in the Lord AbbettFamily of Funds, which consist of 62 portfolios or series. Mr. Sieg is an officer of the Lord AbbettFamily of Funds.

Current Position and Name, Address and Length of Service Principal Occupation and Other DirectorshipsYear of Birth with the Company During the Past Five Years

Douglas B. Sieg Director since 2016; Principal Occupation: Managing Partner (since 2018)Lord, Abbett & Co. LLC President and Chief and was formerly Head of Client Services, joined Lord90 Hudson Street Executive Officer Abbett in 1994.Jersey City, NJ 07302 since 2018(1969) Other Directorships: None.

Independent DirectorsThe following Independent Directors also are directors/trustees of each of the 13 investmentcompanies in the Lord Abbett Family of Funds, which consist of 62 portfolios or series.


Eric C. Fast Director since 2014 Principal Occupation: Chief Executive Officer ofLord, Abbett & Co. LLC Crane Co., an industrial products company c/o Legal Dept. (2001–2014).90 Hudson StreetJersey City, NJ 07302 Other Directorships: Currently serves as director (1949) of Automatic Data Processing, Inc. (since 2007)

and Regions Financial Corporation (since 2010).Previously served as a director of Crane Co.(1999–2014).

Evelyn E. Guernsey Director since 2011 Principal Occupation: CEO, Americas of J.P. MorganLord, Abbett & Co. LLC Asset Management (2004–2010).c/o Legal Dept. 90 Hudson Street Other Directorships: None.Jersey City, NJ 07302(1955)

25


26


Julie A. Hill Director since 2004 Principal Occupation: Owner and CEO of The HillLord, Abbett & Co. LLC Company, a business consulting firm (since 1998).c/o Legal Dept. 90 Hudson Street Other Directorships: Currently serves as director ofJersey City, NJ 07302 Anthem, Inc., a health benefits company (since 1994).(1946)

Kathleen M. Lutito Director since 2017 Principal Occupation: President and Chief Lord, Abbett & Co. LLC Investment Officer of CenturyLink Investment c/o Legal Dept. Management Company (since 2006).90 Hudson StreetJersey City, NJ 07302 Other Directorships: None(1963)

James M. McTaggart Director since 2012 Principal Occupation: Independent managementLord, Abbett & Co. LLC advisor and consultant (since 2012); Vice President, c/o Legal Dept. CRA International, Inc. (doing business as Charles 90 Hudson Street River Associates), a global management consultingJersey City, NJ 07302 firm (2009–2012); Founder and Chairman of (1947) Marakon Associates, Inc., a strategy consulting firm

(1978–2009); and Officer and Director of TrinsumGroup, a holding company (2007–2009).

Other Directorships: Blyth, Inc., a home productscompany (2004–2015).

Karla M. Rabusch Director since 2017 Principal Occupation: President and Director of Lord, Abbett & Co. LLC Wells Fargo Funds Management, LLC (2003–2017); c/o Legal Dept. President of Wells Fargo Funds (2003–2016).90 Hudson StreetJersey City, NJ 07302 Other Directorships: None.(1959)

Mark A. Schmid Director since 2016 Principal Occupation: Vice President and ChiefLord, Abbett & Co. LLC Investment Officer of the University of Chicago c/o Legal Dept. (since 2009).90 Hudson StreetJersey City, NJ 07302 Other Directorships: None.(1959)

James L.L. Tullis Director since 2006; Principal Occupation: CEO of Tullis- Dickerson andLord, Abbett & Co. LLC Chairman since 2017 Co. Inc., a venture capital management firm (since c/o Legal Dept. 1990); CEO of Tullis Health Investors Inc. (since 2012).90 Hudson StreetJersey City, NJ 07302 Other Directorships: Currently serves as director of(1947) Crane Co. (since 1998).

OfficersNone of the officers listed below have received compensation from the Company. All of the officersof the Company also may be officers of the other Lord Abbett Funds and maintain offices at 90Hudson Street, Jersey City, NJ 07302. Unless otherwise indicated, the position(s) and title(s) listedunder the “Principal Occupation During the Past Five Years” column indicate each officer’sposition(s) and title(s) with Lord Abbett. Each officer serves for an indefinite term (i.e., until his orher death, resignation, retirement, or removal).

Basic Information About Management (continued)


27

C L P

w D

Basic Information About Management (continued) Length of ServiceName and Current Position of Current Principal OccupationYear of Birth with the Company Position During the Past Five Years

Douglas B. Sieg President and Chief Elected as Managing Partner of Lord(1969) Executive Officer President and Abbett (since 2018) and Chief Executive was formerly Head of Officer in 2018 Client Services, joined Lord Abbett in 1994.

Jeff D. Diamond Executive Vice President Elected in 2008 Portfolio Manager, joined(1960) Lord Abbett in 2007.

Todd D. Jacobson Executive Vice President Elected in 2005 Partner and Associate(1966) Director, joined Lord

Abbett in 2003.

Robert A. Lee Executive Vice President Elected in 2010 Partner and Chief(1969) Investment Officer, and

was formerly DeputyChief Investment Officerand Director of TaxableFixed Income, joined LordAbbett in 1997.

David J. Linsen Executive Vice President Elected in 2008 Partner and Director of(1974) Equities, joined Lord

Abbett in 2001.

Vincent J. McBride Executive Vice President Elected in 2010 Partner and Director, (1964) joined Lord Abbett in

2003.

Andrew H. O’Brien Executive Vice President Elected in 2010 Partner and Portfolio(1973) Manager, joined Lord

Abbett in 1998.

F. Thomas O’Halloran Executive Vice President Elected in 2010 Partner and Portfolio(1955) Manager, joined Lord

Abbett in 2001.

Marc Pavese Executive Vice President Elected in 2016 Partner and Portfolio(1972) Manager, joined Lord

Abbett in 2008.

Walter H. Prahl Executive Vice President Elected in 2012 Partner and Director, (1958) joined Lord Abbett in

1997.

Eli Rabinowich Executive Vice President Elected in 2018 Portfolio Manager, joined(1975) Lord Abbett in 2018 and

was formerly a PortfolioManager, Partner, andAnalyst at PzenaInvestment Managementfrom (2004–2018).


28

Length of ServiceName and Current Position of Current Principal OccupationYear of Birth with the Company Position During the Past Five Years

Jeffrey Rabinowitz Executive Vice President Elected in 2017 Portfolio Manager, joined(1972) Lord Abbett in 2017 and

was formerly ManagingDirector and PortfolioManager/TechnologyAnalyst at JennisonAssociates LLC (2014–2017)and Managing Directorand Portfolio Manager/Technology Analyst forU.S. Growth Equity atGoldman Sachs AssetManagement (1999–2014).

Steven F. Rocco Executive Vice President Elected in 2014 Partner and Director of(1979) Taxable Fixed Income,

joined Lord Abbett in 2004.

A. Edward Allinson Vice President Elected in 2011 Portfolio Manager, joined(1961) Lord Abbett in 2005.

Vernon T. Bice Vice President Elected in 2011 Portfolio Manager, joined(1974) Lord Abbett in 2011.

Pamela P. Chen Vice President, Elected in 2018 Associate General Counsel,(1978) Assistant Secretary joined Lord Abbett in and Privacy Officer 2017 and was formerly

Special Counsel atSchulte, Roth & Zabel LLP(2005–2017).

Robert S. Clark Vice President Elected in 2018 Portfolio Manager, joined(1975) Lord Abbett in 2010.

Matthew R. DeCicco Vice President Elected in 2003 Managing Director and(1977) Portfolio Manager, joined

Lord Abbett in 1999.

John T. Fitzgerald Vice President and Elected in 2018 Deputy General Counsel,(1975) Assistant Secretary joined Lord Abbett in

2018 and was formerlyDeputy Head of U.S.Funds Legal, ExecutiveDirector and AssistantGeneral Counsel atJPMorgan Chase(2005–2018).

Christopher J. Gizzo Vice President Elected in 2018 Managing Director and(1986) Portfolio Manager, joined

Lord Abbett in 2008.

Bernard J. Grzelak Chief Financial Officer Elected in 2017 Partner, Chief Operating(1971) and Vice President Officer, Global Funds and

Risk, joined Lord Abbett in 2003.

Basic Information About Management (continued)


29

L C o P w P D

E E L

E E T

V E L

Vernon T. Bice V E L

Pamela P. Chen V E A j

a 2

V E L

V E P

V E A j

V E P

C E a O

Length of ServiceName and Current Position of Current Principal OccupationYear of Birth with the Company Position During the Past Five Years

Linda Y. Kim Vice President and Elected in 2016 Counsel, joined Lord (1980) Assistant Secretary Abbett in 2015 and was

formerly an Associate atStroock & Stroock &Lavan LLP (2007–2015).

So Young Lee Vice President Elected in 2018 Portfolio Manager, joined(1971) Lord Abbett in 2013.

Joseph M. McGill Chief Compliance Officer Elected in 2014 Partner and Chief(1962) Compliance Officer,

joined Lord Abbett in2014 and was formerlyManaging Director andthe Chief ComplianceOfficer at UBS GlobalAsset Management(2003–2013).

A. Edward Oberhaus, III Vice President Elected in 1998 Partner and Director, (1959) joined Lord Abbett in 1983.

Amanda S. Ryan Vice President and Elected in 2018 Counsel, joined Lord (1978) Assistant Secretary Abbett in 2016 and was

formerly a Director andCorporate Counsel atPGIM Investments(2012–2016).

Lawrence B. Stoller Vice President, Elected in 2007 Partner and General(1963) Secretary and Counsel, joined Lord Chief Legal Officer Abbett in 2007.

Leah G. Traub Vice President Elected in 2016 Partner and Portfolio(1979) Manager, joined Lord

Abbett in 2007.

Kewjin Yuoh Vice President Elected in 2012 Partner and Portfolio(1971) Manager, joined Lord

Abbett in 2010.

Jackson C. Chan AML Compliance Officer Elected in 2018 Deputy Chief Compliance(1964) Officer and Director of

Regulatory Affairs, joinedLord Abbett in 2014 andwas formerly Director atUBS Global AssetManagement (2005–2014).

Vito A. Fronda Treasurer Elected in 2018 Partner and Director of(1969) Taxation, joined Lord

Abbett in 2003.

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

Basic Information About Management (concluded)


Approval of Advisory ContractThe Board, including all of the Directors who are not “interested persons” of the Company or ofLord Abbett, as defined in the Investment Company Act of 1940, as amended (the “IndependentDirectors”), annually considers whether to approve the continuation of the existing managementagreement between the Fund and Lord Abbett (the “Agreement”). In connection with its mostrecent approval, the Board reviewed materials relating specifically to the Agreement, as well asnumerous materials received throughout the course of the year, including information about theFund’s investment performance compared to the performance of its benchmark. Before making itsdecision as to the Fund, the Board had the opportunity to ask questions and request furtherinformation, taking into account its knowledge of Lord Abbett gained through its meetings anddiscussions. These meetings and discussions included reviews of Fund performance conducted bymembers of the Contract Committee, the deliberations of the Contract Committee, and discussionsbetween the Contract Committee and Lord Abbett’s management. The Independent Directors alsomet with their independent legal counsel in various private sessions at which no representativesof management were present.

The materials received by the Board included, but were not limited to: (1) information provided byBroadridge Financial Solutions (“Broadridge”) regarding the investment performance of the Fundcompared to the investment performance of certain funds with similar investment styles asdetermined by Broadridge, based, in part, on the Fund’s Morningstar category (the “performancepeer group”), and the investment performance of the Fund’s benchmark; (2) information providedby Broadridge regarding the expense ratios, contractual and actual management fee rates, andother expense components for the Fund and certain funds in the same Morningstar category, withgenerally the same or similar share classes and operational characteristics, including asset size (the“expense peer group”); (3) certain supplemental investment performance information provided byLord Abbett; (4) information provided by Lord Abbett on the expense ratios, management fee rates,and other expense components for the Fund; (5) sales and redemption information for the Fund;(6) information regarding Lord Abbett’s financial condition; (7) an analysis of the relativeprofitability of the Agreement to Lord Abbett; (8) information provided by Lord Abbett regardingthe investment management fee schedules for Lord Abbett’s other advisory clients maintainingaccounts with a similar investment strategy as the Fund; and (9) information regarding thepersonnel and other resources devoted by Lord Abbett to managing the Fund.

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

Investment Performance. The Board reviewed the Fund’s investment performance in relation tothat of the performance peer group and the Fund’s benchmark as of various periods ended August31, 2018. The Board observed that the Fund’s investment performance was above the median ofthe performance peer group for the one-year period (ranking in the 1st percentile of the peer

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group), and below the median of the performance peer group for the three- and five-year periodsand took into account recent changes to the portfolio management team and other actions takenby Lord Abbett to attempt to improve equity fund performance. The Board further considered LordAbbett’s performance and reputation generally, the performance of other Lord Abbett-managedfunds overseen by the Board, and the willingness of Lord Abbett to take steps intended to improveperformance when appropriate. After reviewing these and related factors, the Board concludedthat the Fund’s Agreement should be continued.

Lord Abbett’s Personnel and Methods. The Board considered the qualifications of thepersonnel providing investment management services to the Fund, in light of its investmentobjective and discipline, and other services provided to the Fund by Lord Abbett. Among otherthings, the Board considered the size, experience, and turnover of Lord Abbett’s staff, Lord Abbett’sinvestment methodology and philosophy, and Lord Abbett’s approach to recruiting, training, andretaining personnel.

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

Expenses. The Board considered the expense level of the Fund, including the contractual and actualmanagement fee rates, and the expense levels of the Fund’s expense peer group. It also consideredhow the expense level of the Fund related to those of the expense peer group and the amount andnature of the fees paid by shareholders. The Board observed that the net total expense ratio of theFund was below the median of the expense peer group. After reviewing these and related factors,the Board concluded, within the context of its overall approval of the Agreement, that the expenselevel of the Fund was reasonable and supported the continuation of the Agreement.

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

Economies of Scale. The Board considered the extent to which there had been economies ofscale in managing the Fund, whether the Fund’s shareholders had appropriately benefited fromsuch economies of scale, and whether there was potential for realization of any further economiesof scale. The Board concluded that the existing management fee schedule, with its breakpoint inthe level of the management fee, in conjunction with the Fund’s proposed expense limitationagreement, adequately addressed any economies of scale in managing the Fund.

Approval of Advisory Contract (continued)


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Approval of Advisory Contract (concluded)Other Benefits to Lord Abbett. The Board considered the amount and nature of the fees paidby the Fund and the Fund’s shareholders to Lord Abbett for services other than investment advisoryservices, such as the fee that Lord Abbett receives from the Fund for providing administrativeservices to the Fund. The Board also considered the revenues and profitability of Lord Abbett’sinvestment advisory business apart from its mutual fund business, and the intangible benefitsenjoyed by Lord Abbett by virtue of its relationship with the Fund. The Board observed that theDistributor receives 12b-1 fees from certain of the Lord Abbett Funds as to shares held in accountsfor which there is no other broker of record, may retain a portion of the 12b-1 fees it receives, andreceives a portion of the sales charges on sales and redemptions of some classes of shares of theLord Abbett Funds. In addition, the Board observed that Lord Abbett accrues certain benefits for itsbusiness of providing investment advice to clients other than the Lord Abbett Funds, but thatbusiness also benefits the Funds. The Board also noted that Lord Abbett, as disclosed in theprospectus of the Fund, has entered into revenue sharing arrangements with certain entities thatdistribute shares of the Lord Abbett Funds. The Board also took into consideration the investmentresearch that Lord Abbett receives as a result of client brokerage transactions.

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


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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 on Form N- Q. Copies of the filings are available without charge, upon request onthe SEC’s Website at www.sec.gov and may be available by calling Lord Abbett at 888-522-2388.

Tax InformationFor corporate shareholders, 8% of the Fund’s ordinary income distributions qualified for thedividends received deduction.

Additionally, of the distribution paid to the shareholders during the fiscal year endedDecember 31, 2018, $1,901,367 and $6,236,253, respectively, represent short- term capitalgains and long- term capital gains.


Lord Abbett Privacy PolicyYour privacy is important to us. We respect every individual’s right to privacy and security ofinformation that personally identifies you or your account with us. That is why we are committedto our Privacy Policy, which is outlined below.

We safeguard, according to strict standards of security and confidentiality, any nonpublic personalinformation our customers share with us. We do not sell personal information to anyone.

In order to properly execute your transactions, we may collect personal information, such as yourname, address and social security number, from the applications or other forms that you complete,through your use of our Website, and from market research companies. We also may collectinformation about your transactions with us or others, such as your account balance andinvestment and transaction history.

We may share nonpublic personal information with companies that provide services to us, such astransfer agents, printers, technology vendors and others, for your benefit and for theadministration of our business. We require these companies to protect the confidentiality of yournonpublic personal information and to use it only for the purposes for which we disclosed theinformation.

We do not otherwise share nonpublic personal information we collect about you or any of ourcustomers with anyone, except as required or permitted by law.

Our Website uses cookies, which are small files placed on a computer’s hard drive that allows ourWebsite to recognize that computer each time someone uses it to visit our Website. The filecontains information about preferences for using our Website that have been established bysomeone using that computer. Cookies may also be used to keep track of certain other informationregarding the use of our Website, such as Website traffic data, that we may use to make decisionsabout ways to improve our Website. The cookies we use do not include any information about yourpersonal identity or your accounts.

We protect the integrity and privacy of your information in a number of ways. We restrict accessto nonpublic personal information about you to those employees who need to know thatinformation to provide products or services to our customers. We maintain physical, electronic andprocedural safeguards to guard your nonpublic personal information.

The accuracy of your personal information is important. If you need to correct or update yourpersonal or account information, please call us at 800-821-5129. We will be happy to review,correct or update your personal or account information.

Note: If you invest in the Lord Abbett Family of Funds through an account that is controlled byanother financial institution, such as a bank or broker- dealer, the other financial institution’sPrivacy Policy may apply to you.

This Privacy Notice is being provided on behalf of the following entities:Lord Abbett Family of FundsLord, Abbett & Co. LLC

Lord Abbett Distributor LLC

This page is not part of the Annual Report


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Documents

LO RD ABB ETT ANNUAL REPOR T - Pacific Life · 2019-03-12 · LO RD ABB ETT ANNUAL REPOR T For the fiscal year ended December 31, 2018 Lord Abbett Series Fund—Developing Growth