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FUND COMMENTARY – 1Q17 DIVERSIFIED EQUITY STRATEGY FUND* ECONOMIC REVIEW PORTFOLIO POSITIONING The Diversified Equity Strategy Fund underperformed its benchmark, a blend of 85% Russell 3000® Index/15% MSCI EAFE Index with Gross Dividends, during the first quarter of 2017. During the quarter, the Fund’s weighting in the financials sector declined, while its allocation to the information technology sector increased. The financials and information technology sectors are the largest weightings in the Fund. According to the latest estimate from the Bureau of Economic Analysis, U.S. real gross domestic product (GDP) in the fourth quarter expanded by 2.1%,1 an upward revision from previous estimates. In March, the U.S. Federal Reserve (Fed) raised its target for short-term interest rates by 0.25% to a range of 0.75% 1.00%, as economic data continued to suggest a strengthening domestic economy.2 The Bureau of Labor Statistics reported that non-farm payrolls increased by 98,000 in March; the unemployment rate declined to 4.5%, the lowest level in nearly ten years. Over the year, average hourly earnings have risen by 2.7%.3 U.S. inflation, as measured by the Consumer Price Index (CPI),4 registered a year-overyear increase of 2.7% as of February 2017. The Fed’s preferred measure of inflation, the Personal Consumption Expenditure (PCE) Core Index, remains below the Fed’s target of 2.0%. 5 PORTFOLIO ALLOCATION U.S. Small/Mid Cap 39.0 U.S. Large Cap 38.1 International Small/Mid Cap 14.3 Diversified Equity Fund International Large Cap 5.6 Emerging Market Equity 1.7 Other and Cash 1.4 0% 10% 0 20% 30% 40% 50% Source: Lord Abbett. Portfolio breakdown as of 3/31/2017. Fund allocations may not total 100% due to rounding or cash and net other assets. PORTFOLIO RECAP Contributors Detractors During the quarter, both the Fund’s strategic allocation and performance of underlying investment strategies detracted from relative performance The Fund’s weightings in domestic largecap and mid-cap value stocks detracted from relative performance, as these categories underperformed the Fund’s benchmark. The Fund returned 5.20%, reflecting performance at the net asset value (NAV) of Class A shares, with all distributions reinvested, for the quarter ended March 31, 2017. The Fund’s benchmark, a blend consisting of 85% Russell 3000® Index/15% MSCI EAFE Index with Gross Dividends, returned 6% in the same period. The Fund’s allocations to domestic large-cap growth stocks and international small-cap equities contributed to relative performance, as these strategies outperformed the Fund’s benchmark. Within the Fund’s domestic large-cap growth strategy, security selection within the health care sector contributed most. Within this sector, shares of Incyte Corp., a biopharmaceutical company, rose , as several of its products moved along the clinical trail process. LORD ABBETT DIVERSIFIED EQUITY FUND FUND COMMENTARY PERFORMANCE AS OF 3/31/2017 QTD 1 Year 3 Years 5 Years 10 Years Net Asset Value (without sales charge) 5.20% 13.77% 5.25% 9.93% 6.04% Maximum Offering Price (with 5.75% sales charge) -0.84 7.23 3.19 8.64 5.42 85% Russell 3000® Index/15% MSCI EAFE Index with Gross Dividends 6.00 17.24 8.43 12.17 6.67 Lipper Multi Cap Core Funds Average6 5.46 15.83 7.23 11.55 6.30 Expense Ratios Gross: 1.42% Net: 1.32% Performance data quoted reflect past performance and are no guarantee of future results. Current performance may be higher or lower than the performance quoted. The investment return and principal value of an investment in the Fund will fluctuate so that shares, on any given day or when redeemed, may be worth more or less than their original cost. You can obtain performance data current to the most recent month end by calling Lord Abbett at (888) 522-2388 or referring to our website at lordabbett.com. *Effective May 1,2017, the Lord Abbett Diversified Equity Strategy Fund will implement a new investment strategy and change its name to the Lord Abbett Multi-Asset Focused Growth Fund. 1“News Release: Gross Domestic Product,” Bureau of Economic Analysis, March 30,2017. 2“FOMC Minutes–March 2017,” Minutes of the Federal Open Market Committee, March 14-15, 2017. 3“News Release: Employment Situation Summary,” Bureau of Labor Statistics, April 7, 2017. 4The Consumer Price Index (CPI) measures the price changes for each item in a predetermined basket of goods and services, and the inputs are weighted according to their importance to consumers. 5“News Release: Consumer Price Index Summary,” Bureau of Labor Statistics, March 15, 2017. 6Source: Lipper Analytical Services. Without sales charge (NAV): the net asset value performance above shows the Fund’s average annual total returns excluding sales charges. If sales charges, including any applicable contingent deferred sales charge (CDSC) had been included, performance would have been lower. With sales charge (MOP): performance of class A shares with sales charge reflects the reinvestment of all distributions and includes initial maximum sales charge. Certain purchases of Class A shares without a sales charge are subject to CDSC. The CDSC is not reflected in the performance shown. Please see the prospectus for more details. The Fund's portfolio is actively managed and, therefore, its holdings and the weightings of a particular issuer or a particular sector as a percentage of portfolio assets may change significantly over time. Sectors may include many industries. The mention of specific portfolio holdings is for information only. It does not constitute a recommendation or an offer for a particular security or fund, nor should it be taken as a solicitation or recommendation to buy or sell securities or other investments. A Note about Risk: The Fund invests in underlying funds that may engage in a variety of investment strategies involving certain risks; the Fund is subject to the particular risks of an underlying fund in proportion to a respective investment. Performance of an underlying fund may be lower than the performance of the asset class it represents. The value of investments in equity securities will fluctuate in response to general economic conditions and to changes in the prospects of particular companies and/or sectors in the economy. Investments in small and/or mid-sized company stocks typically involve greater risk, particularly in the short term, than those in larger, more established companies. Investments in either growth or value stocks may shift in and out of favor for long periods of time, depending on market and economic conditions. Foreign securities may pose greater risks than domestic securities, including greater price fluctuation, less government regulation, and higher transaction costs. Foreign investments also may be affected by changes in currency rates or currency controls. The Fund is subject to the risks associated with derivatives, which may be different from and greater than the risks associated with investing directly in securities and other investments. These factors can affect Fund performance. The net expense ratio takes into account a voluntary fee waiver that Lord Abbett may discontinue at any time. For periods when fees and expenses were waived and/or reimbursed, the Fund benefited by not bearing such expenses. Without such waivers, performance would have been lower. Returns for less than one year are not annualized. Instances of high double-digit returns were achieved primarily during favorable market conditions and may not be sustainable over time. The Russell 3000® Index measures the performance of the largest 3000 U.S. companies representing approximately 98% of the investable U.S. equity market. The MSCI EAFE Index (Europe, Australasia, Far East) is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the United States and Canada. The MSCI EAFE Index consists of the following 21 developed market country indexes: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. The MSCI EAFE Index with Gross Dividends approximates the maximum possible dividend reinvestment. The amount reinvested is the entire dividend distributed to individuals resident in the country of the company, but does not include tax credits. Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, reviewed or produced by MSCI. Indexes are unmanaged, do not reflect the deduction of fees or expenses, and are not available for direct investment. Past performance is not a reliable indicator or guarantee of future results. The views and information discussed in this commentary are as of March 31, 2017, are subject to change, and may not reflect the views of the firm as a whole. The views expressed in market commentaries are at a specific point in time, are opinions only, and should not be relied upon as a forecast, research, or investment advice regarding a particular investment or the markets in general. Information discussed should not be considered a recommendation to purchase or sell securities. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Lord Abbett Funds. This and other important information is contained in the fund's summary prospectus and/or prospectus. To obtain a prospectus or summary prospectus on any Lord Abbett mutual fund, contact your investment professional, Lord Abbett Distributor LLC at (888) 522-2388 or visit us at lordabbett.com. Read the prospectus carefully before you invest. NOT FDIC INSURED-NO BANK GUARANTEE-MAY LOSE VALUE