UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act File Number: 811-05876

LORD ABBETT SERIES FUND, INC.

(Exact name of Registrant as specified in charter)

90 Hudson Street, Jersey City, NJ 07302

(Address of principal executive offices) (Zip code)

Thomas R. Phillips, Esq., Vice President & Assistant Secretary

90 Hudson Street, Jersey City, NJ 07302

(Name and address of agent for service)

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

Date of fiscal year end: 12/31

Date of reporting period: 12/31/09

Item 1: Report(s) to Shareholders.

2009

LORD ABBETT

ANNUAL

REPORT    

Lord Abbett

Series Fund—All Value Portfolio

For the fiscal year ended December 31, 2009

Lord Abbett Series Fund — All Value Portfolio

Annual Report

For the fiscal year ended December 31, 2009

From left to right: Robert S. Dow, Director and Chairman of the Lord Abbett Funds; E. Thayer Bigelow, Independent Lead Director of the Lord Abbett Funds; and Daria L. Foster, Director and President of the Lord Abbett Funds.

Dear Shareholders: We are pleased to provide you with this overview of the Lord Abbett Series Fund — All Value Portfolio’s performance for the fiscal year ended December 31, 2009. On this page and the following pages, we discuss the major factors that influenced performance. For detailed and more timely information about the Fund, please visit our Website at www.lordabbett.com, where you also can access the quarterly commentaries by the Fund’s portfolio manager.

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

Best regards,

Robert S. Dow

Chairman

Q: What were the overall market conditions during the fiscal year ended December 31, 2009?

A: After a difficult start to the year, the equity markets (as represented by the S&P 500^® Index¹) recovered during the balance of the period, ending the year up 26.46%. This improvement enabled some investors to recover a portion of their previous losses.

Overall, most equity asset classes and investing styles trended higher throughout the period. Mid cap stocks (as defined by the Russell MidCap^® Index ²) generally outperformed large cap stocks (as measured by the Russell 1000^® Index³) and small cap stocks (as measured by the Russell 2000^® Index⁴). Growth stocks (as represented by the Russell 3000^® Growth Index⁵) generally outperformed value stocks (as represented by the Russell 3000^® Value Index⁶) for the fiscal year.

Q: How did the All Value Portfolio perform during the fiscal year ended December 31, 2009?

A: The Fund returned 25.97%, reflecting performance at the net asset value (NAV) of Class VC shares, with all distributions reinvested, compared to its benchmark, the

1

Russell 3000^® Value Index, which had a total return of 19.76% in the same period.

Q: What were the most significant factors affecting performance?

A: The most significant contributors to the Fund’s performance relative to its benchmark for the 12-month period were the energy, healthcare, and consumer discretionary sectors.

Among the individual holdings that contributed to performance were consumer discretionary holding Wynn Resorts, Ltd., an operator of luxury hotels and destination casino resorts in Las Vegas, Nevada and in Macau, China; energy holding Williams Companies, Inc., an integrated natural gas company; and healthcare holding Schering-Plough Corp., a worldwide pharmaceutical company that discovers and markets new therapies and treatment programs.

The most significant detractors from the Fund’s performance relative to its benchmark for the 12-month period were the financial services, materials and processing, and technology sectors.

Among the individual holdings that detracted from performance were consumer staples holding The Kroger Company, an operator of supermarkets and convenience stores; financial services holding Aon Corp., an insurance services holding company; and materials and processing holding Barrick Gold Corp., an international gold company with operating mines and development projects.

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

¹  The S&P 500^® Index is widely regarded as the standard for measuring large cap U.S. stock market performance and includes a representative sample of leading companies in leading industries.

²  The Russell Midcap^® Index measures the performance of the 800 smallest companies in the Russell 1000 Index, which represents approximately 25% of the total market capitalization of the Russell 1000 Index.

³  The Russell 1000^® Index measures the performance of the 1,000 largest companies in the Russell 3000 Index, which represents approximately 92% of the total market capitalization of the Russell 3000 Index.

⁴  The Russell 2000^® Index is composed of 2,000 securities with market values ranging from $25 million to $275 million. The Growth Index is comprised of securities in the Russell 2000^® Index with higher price-to-book ratios and higher forecasted growth.

⁵  The Russell 3000^® Growth Index measures the performance of those Russell 3000^® Index companies with higher price-to-book ratios and higher forecasted growth values. The stocks in this index are also members of either the Russell 1000^® Growth or the Russell 2000^® Growth indexes.

⁶  The Russell 3000^® Value Index measures the performance of those Russell 3000 Index companies with lower price-to-book ratios and lower forecasted growth values. The stocks in this index are also members of either the Russell 1000^® Value or the Russell 2000^® Value indexes.

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

Important Performance and Other Information

Performance data quoted 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

2

when redeemed, may be worth more or less than their original cost. You can obtain performance data current to the most recent month-end by calling Lord Abbett at 888-522-2388 or referring to www.lordabbett.com.

During the period covered by this report, expense waivers and reimbursements were in place. Without such expense waivers and reimbursements, the Fund’s returns would have been lower.

The views of the Fund’s management and the portfolio holdings described in this report are as of December 31, 2009; these views and portfolio holdings may have changed subsequent to this date, and they do not guarantee the future performance of the markets or the Fund. Information provided in this report should not be considered a recommendation to purchase or sell securities.

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

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

The Fund serves as an underlying investment vehicle for variable annuity contracts and variable life insurance policies.

3

Investment Comparison

Below is a comparison of a $10,000 investment in Class VC shares with the same investment in the Russell 3000^® Value Index and the Russell 1000^® Value Index, assuming reinvestment of all dividends and distributions. The Fund’s shares are sold only to insurance company separate accounts that fund certain variable annuity and variable life contracts. This line graph comparison does not reflect the sales charges or other expenses of these contracts. If those sales charges and expenses were reflected, returns would be less. The graph and performance table below do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. During certain periods, expenses of the Fund have been waived or reimbursed by Lord Abbett; without such waiver or reimbursement of expenses, the Fund’s returns would have been lower. Past performance is no guarantee of future results.

Average Annual Total Returns for the

Periods Ended December 31, 2009

	1 Year	5 Years	Life of Class
Class VC2	25.97%	3.29%	8.33%

¹    Performance for each unmanaged index does not reflect transaction costs, management fees or sales charges. The performance of each index is not necessarily representative of the Fund’s performance. Performance for each index begins on April 30, 2003.

²    The Class VC shares were first offered on April 30, 2003.

4

Expense Example

As 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 ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2009 through December 31, 2009).

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 products that invest in the Fund, are not reflected in this Example. If such fees and expenses were reflected in the Example, the total expenses shown would be higher. Fees and expenses regarding such variable insurance products are separately described in the prospectus related to those products.

Actual Expenses

The first line of the table on the following page provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading titled “Expenses Paid During the Period 7/1/09 – 12/31/09” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

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

5

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

	Beginning Account Value		Ending Account Value		Expenses Paid During Period†
	7/1/09		12/31/2009		7/1/09 - 12/31/2009
Class VC
Actual	$	1,000.00	$	1,219.50	$	6.43
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.41	$	5.85

^† Net expenses are equal to the Fund’s annualized expense ratio of 1.15%, multiplied by the average account value over the period, multiplied by 184/365 (to reflect one-half year period).

Portfolio Holdings Presented by Sector

December 31, 2009

Sector*	%**
Consumer Discretionary	12.34%
Consumer Staples	1.38%
Energy	16.40%
Financial Services	18.59%
Healthcare	22.17%
Materials & Processing	5.85%
Producer Durables	14.03%
Technology	8.43%
Short-Term Investment	0.81%
Total	100.00%

* A sector may comprise several industries.

** Represents percent of total investments.

6

Schedule of Investments

December 31, 2009

Investments	Shares	Value (000)
LONG-TERM INVESTMENTS 98.71%
COMMON STOCKS 97.65%
Advertising Agencies 1.20%
Omnicom Group, Inc.	33,100	$	1,296
Aerospace 2.02%
Curtiss-Wright Corp.	12,200		382
General Dynamics Corp.	8,713		594
United Technologies Corp.	17,234		1,196
Total			2,172
Air Transportation 0.27%
Bristow Group, Inc.*	7,500		288
Asset Management & Custodian 0.67%
State Street Corp.	16,500		718
Auto Parts 1.55%
Autoliv, Inc. (Sweden)(a)	9,708		421
WABCO Holdings, Inc.	48,500		1,251
Total			1,672
Automobiles 2.23%
Ford Motor Co.*	178,600		1,786
Honda Motor Co., Ltd. ADR	18,200		617
Total			2,403
Banks: Diversified 5.94%
Bank of America Corp.	75,300		1,134
City National Corp.	23,500		1,072
Commerce Bancshares, Inc.	20,960		812
Cullen/Frost Bankers, Inc.	27,800		1,390
KeyCorp	101,400		563
PNC Financial Services Group, Inc. (The)	6,300		333
SunTrust Banks, Inc.	22,900		465
Wells Fargo & Co.	23,600		637
Total			6,406

Investments	Shares	Value (000)
Biotechnology 3.37%
Amgen, Inc.*	49,700	$	2,812
Onyx Pharmaceuticals, Inc.*	28,000		822
Total			3,634
Building Materials 0.41%
Quanex Building Products Corp.	19,150		325
Trex Co., Inc.*	5,800		114
Total			439
Casinos & Gambling 0.31%
International Game Technology	17,700		332
Chemical: Diversified 0.34%
Celanese Corp. Series A	11,500		369
Commercial Services 1.06%
Accenture plc Class A (Ireland)(a)	27,579		1,145
Commercial Services: Rental & Leasing 0.26%
GATX Corp.	9,900		285
Computer Services, Software & Systems 5.83%
Adobe Systems, Inc.*	42,800		1,574
Autodesk, Inc.*	23,300		592
Intuit, Inc.*	31,500		967
McAfee, Inc.*	19,200		779
Microsoft Corp.	60,300		1,839
VeriFone Holdings, Inc.*	32,200		527
Total			6,278
Computer Technology 1.19%
EMC Corp.*	27,831		486
Hewlett-Packard Co.	15,500		798
Total			1,284
Consumer Lending 1.16%
Berkshire Hathaway, Inc. Class B*	382		1,255

See Notes to Financial Statements.

7

Schedule of Investments (continued)

December 31, 2009

Investments	Shares	Value (000)
Diversified Financial Services 6.55%
Capital One Financial Corp.	39,552	$	1,516
JPMorgan Chase & Co.	47,400		1,975
Lazard Ltd. Class A	46,800		1,777
Morgan Stanley	33,700		998
Raymond James Financial, Inc.	33,500		796
Total			7,062
Diversified Manufacturing Operations 3.47%
Eaton Corp.	27,070		1,722
Honeywell International, Inc.	22,500		882
ITT Corp.	22,800		1,134
Total			3,738
Diversified Materials & Processing 0.25%
Hexcel Corp.*	20,800		270
Diversified Retail 0.24%
Nordstrom, Inc.	7,000		263
Engineering & Contracting Services 0.52%
Jacobs Engineering Group, Inc.*	15,000		564
Financial Data & Systems 0.83%
MasterCard, Inc. Class A	3,496		895
Foods 0.74%
J.M. Smucker Co. (The)	12,900		797
Gas Pipeline 1.98%
El Paso Corp.	122,300		1,202
EQT Corp.	21,300		935
Total			2,137
Gold 2.15%
Barrick Gold Corp. (Canada)(a)	58,772		2,314
Healthcare Facilities 1.78%
DaVita, Inc.*	32,700		1,921

Investments	Shares	Value (000)
Healthcare Management Services 2.23%
CIGNA Corp.	32,500	$	1,146
Humana, Inc.*	28,705		1,260
Total			2,406
Healthcare Services 1.46%
McKesson Corp.	25,100		1,569
Hotel/Motel 2.42%
Marriott International, Inc. Class A	38,839		1,058
Starwood Hotels & Resorts Worldwide, Inc.	34,000		1,243
Wynn Resorts Ltd.	5,200		303
Total			2,604
Household Equipment/Products 0.72%
Fortune Brands, Inc.	17,900		773
Insurance: Multi-Line 1.74%
ACE Ltd. (Switzerland)*(a)	7,400		373
Aon Corp.	9,900		380
Markel Corp.*	1,700		578
MetLife, Inc.	15,424		545
Total			1,876
Leisure Time 0.15%
Carnival Corp. Unit*	5,000		158
Luxury Items 0.52%
Fossil, Inc.*	16,600		557
Machinery: Industrial 1.09%
EnPro Industries, Inc.*	17,200		454
Kennametal, Inc.	27,700		718
Total			1,172
Medical & Dental Instruments & Supplies 4.16%
C.R. Bard, Inc.	9,917		773
Cooper Cos., Inc. (The)	18,300		698
Patterson Cos., Inc.*	38,200		1,069
Stryker Corp.	22,800		1,148

See Notes to Financial Statements.

8

Schedule of Investments (continued)

December 31, 2009

Investments	Shares	Value (000)
Medical & Dental Instruments & Supplies (continued)
Zimmer Holdings, Inc.*	13,500	$	798
Total			4,486
Medical Equipment 2.32%
Thermo Fisher Scientific, Inc.*	28,500		1,359
Varian Medical Systems, Inc.*	24,400		1,143
Total			2,502
Metal Fabricating 1.31%
Reliance Steel & Aluminum Co.	32,700		1,413
Metals & Minerals: Diversified 0.10%
Agnico-Eagle Mines Ltd. (Canada)(a)	2,000		108
Miscellaneous: Consumer Staples 0.63%
Diageo plc ADR	9,800		680
Oil: Crude Producers 3.75%
Apache Corp.	6,400		660
Noble Energy, Inc.	11,500		819
Southwestern Energy Co.*	16,500		795
XTO Energy, Inc.	37,900		1,763
Total			4,037
Oil: Integrated 6.47%
Cenovus Energy, Inc. (Canada)(a)	30,500		769
Chevron Corp.	8,100		624
EnCana Corp. (Canada)(a)	30,500		988
Exxon Mobil Corp.	37,500		2,557
Williams Cos., Inc. (The)	96,600		2,036
Total			6,974
Oil Well Equipment & Services 4.12%
Halliburton Co.	48,600		1,462
Helmerich & Payne, Inc.	11,100		443

Investments	Shares	Value (000)
Schlumberger Ltd.	14,500	$	944
Smith International, Inc.	23,000		625
Superior Energy Services, Inc.*	39,800		967
Total			4,441
Pharmaceuticals 6.74%
Abbott Laboratories	44,170		2,385
AmerisourceBergen Corp.	62,300		1,624
Warner Chilcott plc Class A (Ireland)*(a)	70,600		2,010
Watson Pharmaceuticals, Inc.*	31,448		1,246
Total			7,265
Producer Durables: Miscellaneous 0.59%
SPX Corp.	11,600		635
Railroads 1.97%
Canadian National Railway Co. (Canada)(a)	9,400		511
Kansas City Southern*	48,500		1,615
Total			2,126
Scientific Instruments: Control & Filter 2.32%
Parker Hannifin Corp.	20,513		1,105
Robbins & Myers, Inc.	42,800		1,007
Roper Industries, Inc.	7,400		388
Total			2,500
Scientific Instruments: Electrical 0.11%
AMETEK, Inc.	3,000		115
Securities Brokerage & Services 0.55%
Charles Schwab Corp. (The)	31,300		589
Semiconductors & Components 1.37%
Micron Technology, Inc.*	98,200		1,037
Xilinx, Inc.	17,486		438
Total			1,475

See Notes to Financial Statements.

9

Schedule of Investments (concluded)

December 31, 2009

Investments	Shares	Value (000)
Specialty Retail 1.71%
American Eagle Outfitters, Inc.	45,700	$	776
Children’s Place Retail Stores, Inc. (The)*	12,300		406
Lowe’s Cos., Inc.	28,200		660
Total			1,842
Steel 1.26%
Nucor Corp.	15,100		704
United States Steel Corp.	11,900		656
Total			1,360
Textiles Apparel & Shoes 1.24%
Guess?, Inc.	5,300		224
NIKE, Inc. Class B	10,700		707
Timberland Co. (The) Class A*	22,500		403
Total			1,334
Truckers 0.28%
Heartland Express, Inc.	20,000		305
Total Common Stocks (cost $92,802,428)			105,239
PREFERRED STOCK 1.06%
Banks: Diversified
Bank of America Corp.* (cost $1,143,000)	76,200		1,137
Total Long-Term Investments (cost $93,945,428)			106,376

Investments	Principal Amount (000)		Value (000)
SHORT-TERM INVESTMENT 0.80%
Repurchase Agreement
Repurchase Agreement dated 12/31/2009, Zero Coupon due 1/4/2010 with Fixed Income Clearing Corp. collateralized by $875,000 of Federal National Mortgage Assoc. 1.722% due 5/10/2011; value: $881,563; proceeds: $863,923 (cost $863,923)	$	864	$	864
Total Investments in Securities 99.51% (cost $94,809,351)				107,240
Cash and Other Assets in Excess of Liabilities 0.49%				529
Net Assets 100.00%			$	107,769

ADR American Depositary Receipt.

Unit More than one class of securities traded together.

* Non-income producing security.

^(a) Foreign security traded in U.S. dollars.

See Notes to Financial Statements.

10

Statement of Assets and Liabilities

December 31, 2009

ASSETS:
Investments in securities, at value (cost $94,809,351)	$	107,240,100
Cash		2,190
Receivables:
Investment securities sold		977,526
Capital shares sold		64,893
Dividends		63,425
From advisor (See Note 3)		11,539
Prepaid expenses		1,033
Total assets		108,360,706
LIABILITIES:
Payables:
Investment securities purchased		320,422
Management fee		64,591
Capital shares reacquired		47,618
Directors’ fees		3,650
Fund administration		3,445
Accrued expenses and other liabilities		152,175
Total liabilities		591,901
NET ASSETS	$	107,768,805
COMPOSITION OF NET ASSETS:
Paid-in capital	$	108,339,955
Undistributed net investment income		27,004
Accumulated net realized loss on investments and foreign currency related transactions		(13,028,903	)
Net unrealized appreciation on investments		12,430,749
Net Assets	$	107,768,805
Outstanding shares (50 million shares of common stock authorized, $.001 par value)		7,240,365
Net asset value, offering and redemption price per share (Net assets divided by outstanding shares)		$14.88

See Notes to Financial Statements.

11

Statement of Operations

For the Year Ended December 31, 2009

Investment income:
Dividends (net of foreign withholding taxes of $11,460)	$	1,222,787
Interest		277
Total investment income		1,223,064
Expenses:
Management fee		670,046
Shareholder servicing		325,716
Professional		38,311
Fund administration		35,736
Reports to shareholders		32,607
Custody		16,932
Directors’ fees		2,812
Other		2,133
Gross expenses		1,124,293
Expense reductions (See Note 7)		(189	)
Management fees waived and expenses reimbursed (See Note 3)		(96,692	)
Net expenses		1,027,412
Net investment income		195,652
Net realized and unrealized gain (loss):
Net realized loss on investments and foreign currency related transactions		(5,385,837	)
Net change in unrealized appreciation/depreciation on investments		27,388,821
Net realized and unrealized gain		22,002,984
Net Increase in Net Assets Resulting From Operations	$	22,198,636

See Notes to Financial Statements.

12

Statements of Changes in Net Assets

INCREASE (DECREASE) IN NET ASSETS	For the Year Ended December 31, 2009			For the Year Ended December 31, 2008
Operations:
Net investment income	$	195,652		$	515,467
Net realized loss on investments and foreign currency related transactions		(5,385,837	)		(7,629,201	)
Net change in unrealized appreciation/depreciation on investments		27,388,821			(23,361,470	)
Net increase (decrease) in net assets resulting from operations		22,198,636			(30,475,204	)
Distributions to shareholders from:
Net investment income		(165,971	)		(515,508	)
Net realized gain		–			(590,433	)
Total distributions to shareholders		(165,971	)		(1,105,941	)
Capital share transactions (See Note 10):
Proceeds from sales of shares		25,661,346			19,957,124
Reinvestment of distributions		165,971			1,105,941
Cost of shares reacquired		(16,975,453	)		(14,344,503	)
Net increase in net assets resulting from capital share transactions		8,851,864			6,718,562
Net increase (decrease) in net assets		30,884,529			(24,862,583	)
NET ASSETS:
Beginning of year	$	76,884,276		$	101,746,859
End of year	$	107,768,805		$	76,884,276
Undistributed (distributions in excess of) net investment income	$	27,004		$	(2,572	)

See Notes to Financial Statements.

13

Financial Highlights

	Year Ended 12/31
	2009		2008		2007		2006		2005
Per Share Operating Performance
Net asset value, beginning of year	$11.83		$16.84		$16.48		$14.82		$13.95
Investment operations:
Net investment income(a)	.03		.08		.10		.11		.09
Net realized and unrealized gain (loss)	3.04		(4.92	)	1.01		2.06		.88
Total from investment operations	3.07		(4.84	)	1.11		2.17		.97
Distributions to shareholders from:
Net investment income	(.02	)	(.08	)	(.09	)	(.09	)	(.05	)
Net realized gain	–		(.09	)	(.66	)	(.42	)	(.05	)
Total distributions	(.02	)	(.17	)	(.75	)	(.51	)	(.10	)
Net asset value, end of year	$14.88		$11.83		$16.84		$16.48		$14.82
Total Return(b)	25.97	%	(28.67	)%	6.72	%	14.64	%	6.95	%
Ratios to Average Net Assets:
Expenses, excluding expense reductions and including management fees waived and expenses reimbursed	1.15	%	1.15	%	1.15	%	1.15	%	1.14	%
Expenses, including expense reductions, management fees waived and expenses reimbursed	1.15	%	1.15	%	1.15	%	1.15	%	1.14	%
Expenses, excluding expense reductions, management fees waived and expenses reimbursed	1.26	%	1.27	%	1.24	%	1.30	%	1.75	%
Net investment income	.22	%	.56	%	.55	%	.69	%	.66	%
Supplemental Data:
Net assets, end of year (000)	$107,769		$76,884		$101,747		$75,940		$34,277
Portfolio turnover rate	85.09	%	81.82	%	62.96	%	59.92	%	34.89	%

^(a) Calculated using average shares outstanding during the year.

^(b) Total return assumes the reinvestment of all distributions.

See Notes to Financial Statements.

14

Notes to Financial Statements

1.    ORGANIZATION

Lord Abbett Series Fund, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company, incorporated under Maryland law in 1989. The Company consists of eight separate portfolios (the “Funds”). This report covers All Value Portfolio (the “Fund”). The Fund is diversified as defined in the Act.

The investment objective of the Fund is long-term growth of capital and income without excessive fluctuations in market value. The Fund offers Variable Contract class shares (“Class VC Shares”) which are currently issued and redeemed only in connection with investments in, and payments under, variable annuity contracts and variable life insurance policies issued by life insurance and insurance-related companies.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

2.    SIGNIFICANT ACCOUNTING POLICIES

(a) Investment Valuation–Securities actively traded on any recognized U.S. or non-U.S. exchange or on The NASDAQ Stock Market LLC are valued at the last sale price or official closing price on the exchange or system on which they are principally traded. Events occurring after the close of trading on non-U.S. exchanges may result in adjustments to the valuation of foreign securities to more accurately reflect their fair value as of the close of regular trading on the New York Stock Exchange LLC. The Fund may rely on an independent fair valuation service in adjusting the valuations of foreign securities. Unlisted equity securities are valued at the last quoted sale price or, if no sale price is available, at the mean between the most recently quoted bid and asked prices. Securities for which market quotations are not readily available are valued at fair value as determined by management and approved in good faith by the Board of Directors. Short-term securities with 60 days or less remaining to maturity are valued using the amortized cost method, which approximates current market value.

(b) Security Transactions–Security transactions are recorded as of the date that the securities are purchased or sold (trade date). Realized gains and losses on sales of portfolio securities are calculated using the identified-cost method.

(c) Investment Income–Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis as earned. Discounts are accreted and premiums are amortized using the effective interest method. Withholding taxes on foreign dividends have been provided for in accordance with the applicable country’s tax rules and rates.

(d) Income Taxes–It is the policy of the Fund to meet the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all taxable income and capital gains to its shareholders. Therefore, no income tax provision is required.

The Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund’s U.S. federal tax returns

15

Notes to Financial Statements (continued)

remains open for the fiscal years ended December 31, 2006 through December 31, 2009. The statutes of limitations on the Company’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

(e) Expenses–Expenses incurred by the Company that do not specifically relate to an individual fund are generally allocated to the Funds within the Company on a pro rata basis by relative net assets.

(f) Foreign Transactions–The books and records of the Fund are maintained in U.S. dollars and transactions denominated in foreign currencies are recorded in the Fund’s records at the rate prevailing when earned or recorded. Asset and liability accounts that are denominated in foreign currencies are adjusted daily to reflect current exchange rates and any unrealized gain (loss) is included in Net change in unrealized appreciation/depreciation on investments on the Fund’s Statement of Operations. The resultant exchange gains and losses upon settlement of such transactions are included in Net realized loss on investments and foreign currency related transactions on the Fund’s Statement of Operations. The Fund does not isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the changes in market prices of the securities.

(g) Repurchase Agreements–The Fund may enter into repurchase agreements with respect to securities. A repurchase agreement is a transaction in which a Fund acquires a security and simultaneously commits to resell that security to the seller (a bank or securities dealer) at an agreed-upon price on an agreed-upon date. The Fund requires at all times that the repurchase agreement be collateralized by cash, or by securities of the U.S. Government, its agencies, its instrumentalities, or U.S. Government sponsored enterprises having a value equal to, or in excess of, the value of the repurchase agreement (including accrued interest). If the seller of the agreement defaults on its obligation to repurchase the underlying securities at a time when the value of these securities has declined, a Fund may incur a loss upon disposition of the securities.

(h) Fair Value Measurements–In accordance with Financial Accounting Standards Board (“FASB”), Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures (formerly SFAS 157), fair value is defined as the price that the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. ASC 820 established a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk – for example, the risk inherent in a particular valuation technique used to measure fair value (such as a pricing model) and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below:

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

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.); and

16

Notes to Financial Statements (continued)

• Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of December 31, 2009 in valuing the Fund’s investments carried at value:

Investment Type*	Level 1 (000)		Level 2 (000)		Level 3 (000)		Total (000)
Common Stocks	$	105,239	$	–	$	–	$	105,239
Preferred Stock		1,137		–		–		1,137
Repurchase Agreement		–		864		–		864
Total	$	106,376	$	864	$	–	$	107,240

* See Schedule of Investments for values in each industry.

3.    MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Management Fee

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

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

First $1 billion	.75%
Next $1 billion	.70%
Over $2 billion	.65%

For the fiscal year ended December 31, 2009, the effective management fee, before waivers and expenses reimbursed, was at an annualized rate of .75% of the Fund’s average daily net assets.

Lord Abbett provides certain administrative services to the Fund pursuant to an Administrative Services Agreement at an annual rate of .04% of the Fund’s average daily net assets.

For the period January 1, 2009 through April 30, 2009, Lord Abbett contractually agreed to reimburse the Fund to the extent necessary so that total annual operating expenses (excluding management fee) did not exceed an annual rate of .40% of average daily net assets.

Effective May 1, 2009, Lord Abbett voluntarily agreed to waive a portion of its management fee and, if necessary, reimburse the Fund to the extent necessary so that total annual operating expenses do not exceed an annual rate of 1.15% of average daily net assets.

Lord Abbett may stop or change the level of the voluntary waiver or reimbursement at any time.

The Company, on behalf of the Fund, has entered into services arrangements with certain insurance companies. 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 the insurance company’s separate account to service and maintain the Variable Contract owners’

17

Notes to Financial Statements (continued)

accounts. The Fund may also compensate certain insurance companies, third-party administrators and other entities for providing recordkeeping, sub-transfer agency and other administrative services to the Fund. For the fiscal year ended December 31, 2009, the Fund incurred expenses of $312,688 for such services arrangements, which have been included in Shareholder Servicing Expense on the Statement of Operations.

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

The tax character of distributions paid during the fiscal years ended December 31, 2009 and 2008 was as follows:

	Year Ended 12/31/09		Year Ended 12/31/08
Distributions paid from:
Ordinary income	$	165,971	$	515,508
Net long-term capital gains		–		590,433
Total distributions paid	$	165,971	$	1,105,941

As of December 31, 2009, the components of accumulated losses on a tax-basis were as follows:

Undistributed ordinary income – net	$	30,654
Total undistributed earnings	$	30,654
Capital loss carryforwards*		(12,476,053	)
Temporary differences		(306,856	)
Unrealized gains – net		12,181,105
Total accumulated losses – net	$	(571,150	)

* As of December 31, 2009, the capital loss carryforwards, along with the related expiration dates, were as follows:

2016	2017		Total
$3,313,767	$	9,162,286	$	12,476,053

Certain losses incurred after October 31 (“Post-October losses”) within the taxable year are deemed to arise on the first business day of the Fund’s next taxable year. The Fund incurred and will elect to defer net capital losses of $303,206 during fiscal 2009.

18

Notes to Financial Statements (continued)

As of December 31, 2009, the aggregate unrealized security gains and losses based on cost for U.S. federal income tax purposes were as follows:

Tax cost	$	95,058,995
Gross unrealized gain		14,788,192
Gross unrealized loss		(2,607,087	)
Net unrealized security gain	$	12,181,105

The difference between book-basis and tax-basis unrealized gains (losses) is attributable to wash sales.

Permanent items identified during the fiscal year ended December 31, 2009 have been reclassified among the components of net assets based on their tax basis treatment as follows:

Undistributed Net Investment Income	Accumulated Net Realized Loss
$(105)	$	105

The permanent differences are attributable to the tax treatment of foreign currency transactions.

5.    PORTFOLIO SECURITIES TRANSACTIONS

Purchases and sales of investment securities (excluding short-term investments) for the fiscal year ended December 31, 2009 were as follows:

Purchases	Sales
$84,405,389	$	73,870,090

There were no purchases or sales of U.S. Government securities for the fiscal year ended December 31, 2009.

6.    DIRECTORS’ REMUNERATION

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

7.    EXPENSE REDUCTIONS

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

8.    CUSTODIAN AND ACCOUNTING AGENT

State Street Bank and Trust Company (“SSB”) is the Company’s custodian and accounting agent. SSB performs custodial, accounting and recordkeeping functions relating to portfolio transactions and calculating the Fund’s NAV.

19

Notes to Financial Statements (concluded)

9.    INVESTMENT RISKS

The Fund is subject to the general risks and considerations associated with investing in equity securities as well as the particular risks associated with value stocks. The value of an investment will fluctuate in response to movements in the equity securities market in general and to the changing prospects of individual companies in which the Fund invests. Large value stocks, in which the Fund invests a significant portion of its assets, may perform differently than the market as a whole and other types of stocks, such as mid-sized or small-company stocks and growth stocks. This is because different types of stocks tend to shift in and out of favor depending on market and economic conditions. Mid-cap and small-cap company stocks in which the Fund may invest may be more volatile and less liquid than large-cap stocks. The market may fail to recognize the intrinsic value of a particular value stock for a long time. In addition, if the Fund’s assessment of a company’s value or prospects for exceeding earnings expectations or market conditions is wrong, the Fund could suffer losses or produce poor performance relative to other funds, even in a rising market.

Due to its investments in multinational companies, the Fund may experience increased market, liquidity, currency, political, information, and other risks.

These factors can affect the Fund’s performance.

10.    SUMMARY OF CAPITAL TRANSACTIONS

Transactions in shares of capital stock were as follows:

	Year Ended December 31, 2009		Year Ended December 31, 2008
Shares sold	2,046,125		1,369,134
Reinvestment of distributions	11,057		98,569
Shares reacquired	(1,314,208	)	(1,011,996	)
Increase	742,974		455,707

11.    SUBSEQUENT EVENTS

In accordance with the provisions set forth in ASC Topic 855 (formerly SFAS 165), Subsequent Events, adopted by the Fund as of December 31, 2009, management has evaluated subsequent events existing in the Fund’s financial statements through February 16, 2010. Management has determined that there were no material subsequent events that would require recognition or additional disclosure in the Fund’s financial statements through this date.

12.    RECENT ACCOUNTING PRONOUNCEMENTS

In January 2010, the FASB issued Accounting Standards Update 2010-06 “Improving Disclosures about Fair Value Measurements” (“ASU 2010-06”). ASU 2010-06 provides clarifications to existing disclosures required by ASC 820 as well as amends ASC 820 to require certain new disclosures. ASU 2010-06 is substantially effective for interim and annual reporting periods beginning after December 15, 2009. Management is currently evaluating the impact the adoption of ASU 2010-06 will have on the Fund’s financial statement disclosures.

20

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of Lord Abbett Series Fund, Inc.:

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the All Value Portfolio, one of the portfolios constituting the Lord Abbett Series Fund, Inc. (the “Company”), as of December 31, 2009, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2009, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the All Value Portfolio of the Lord Abbett Series Fund, Inc. as of December 31, 2009, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

DELOITTE & TOUCHE LLP

New York, New York

February 16, 2010

21

Basic Information About Management

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

Lord, Abbett & Co. LLC (“Lord Abbett”), a Delaware limited liability company, is the Company’s investment adviser.

Interested Directors

The following Directors are partners of Lord Abbett and are “interested persons” of the Company as defined in the Act. Mr. Dow and Ms. Foster are officers, directors, or trustees of each of the 14 Lord Abbett-sponsored funds, which consist of 53 portfolios or series.

Name, Address and Year of Birth	Current Position and Length of Service with Company	Principal Occupation During Past Five Years	Other Directorships
Robert S. Dow Lord, Abbett & Co. LLC 90 Hudson Street Jersey City, NJ 07302 (1945)	Director since 1995, Chairman since 1996	Senior Partner (since 2007), Chief Executive Officer (since 1996) and was formerly Managing Partner (1996 - 2007), joined Lord Abbett in 1972.	N/A
Daria L. Foster Lord, Abbett & Co. LLC 90 Hudson Street Jersey City, NJ 07302 (1954)	Director since 2006	Managing Partner (since 2007) and was formerly Director of Marketing and Client Service, joined Lord Abbett in 1990.	N/A

Independent Directors

The following independent or outside Directors (“Independent Directors”) are also directors or trustees of each of the 14 Lord Abbett-sponsored funds, which consist of 53 portfolios or series.

Name, Address and Year of Birth	Current Position and Length of Service with Company	Principal Occupation During Past Five Years	Other Directorships
E. Thayer Bigelow Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1941)	Director since 1994	Managing General Partner, Bigelow Media, LLC (since 2000); Senior Adviser, Time Warner Inc. (1998 - 2000).	Currently serves as director of Crane Co. (since 1984), Huttig Building Products Inc. (since 1998) and R.H. Donnelley Inc. (since 2009).

22

Basic Information About Management (continued)

Name, Address and Year of Birth	Current Position and Length of Service with Company	Principal Occupation During Past Five Years	Other Directorships
William H.T. Bush Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1938)	Director since 1998	Co-founder and Chairman of the Board of the financial advisory firm of Bush-O’Donnell & Company (since 1986).	Currently serves as director of WellPoint, Inc., a health benefits company (since 2002).
Robert B. Calhoun, Jr. Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1942)	Director since 1998	Senior Advisor of Monitor Clipper Partners, a private equity investment fund (since 1997); President of Clipper Asset Management Corp. (1991 - 2009).	N/A
Julie A. Hill Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1946)	Director since 2004	Owner and CEO of The Hill Company, a business consulting firm (since 1998).	Currently serves as director of WellPoint, Inc., a health benefits company (since 1994) and Lend Lease Corporation Limited (since 2005).
Franklin W. Hobbs Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1947)	Director since 2001	Advisor of One Equity Partners, a private equity firm (since 2004).	Currently serves as a director and Chairman of the Board of GMAC Inc., a financial services firm (since 2009) and as a director of Molson Coors Brewing Company (since 2002).
Thomas J. Neff Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1937)	Director since 1989	Chairman of Spencer Stuart (U.S.), an executive search consulting firm (since 1996).	Currently serves as director of Ace, Ltd. (since 1997) and Hewitt Associates, Inc. (since 2004).
James L.L. Tullis Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1947)	Director since 2006	CEO of Tullis-Dickerson and Co. Inc., a venture capital management firm (since 1990).	Currently serves as director of Crane Co. (since 1998).

23

Basic Information About Management (continued)

Officers

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

Name and Year of Birth	Current Position with Company	Length of Service of Current Position	Principal Occupation During Past Five Years
Robert S. Dow (1945)	Chief Executive Officer and Chairman	Elected in 1996	Senior Partner (since 2007), Chief Executive Officer (since 1996) and was formerly Managing Partner (1996 - 2007), joined Lord Abbett in 1972.
Daria L. Foster (1954)	President	Elected in 2006	Managing Partner (since 2007) and was formerly Director of Marketing and Client Service, joined Lord Abbett in 1990.
Robert P. Fetch (1953)	Executive Vice President	Elected in 2003	Partner and Director, joined Lord Abbett in 1995.
Daniel H. Frascarelli (1954)	Executive Vice President	Elected in 2003	Partner and Director, joined Lord Abbett in 1990.
Robert I. Gerber (1954)	Executive Vice President	Elected in 2003	Partner and Chief Investment Officer (since 2007), joined Lord Abbett in 1997 as Director of Taxable Fixed Income Management.
Todd D. Jacobson (1966)	Executive Vice President	Elected in 1999	Portfolio Manager, joined Lord Abbett in 2003.
Eli M. Salzmann (1964)	Executive Vice President	Elected in 2006	Partner and Director, joined Lord Abbett in 1997.
Christopher J. Towle (1957)	Executive Vice President	Elected in 1999	Partner and Director, joined Lord Abbett in 1987.
Paul J. Volovich (1973)	Executive Vice President	Elected in 2005	Partner and Director, joined Lord Abbett in 1997.
James W. Bernaiche (1956)	Chief Compliance Officer	Elected in 2004	Partner and Chief Compliance Officer, joined Lord Abbett in 2001.
Joan A. Binstock (1954)	Chief Financial Officer and Vice President	Elected in 1999	Partner and Chief Operations Officer, joined Lord Abbett in 1999.

24

Basic Information About Management (continued)

Name and Year of Birth	Current Position with Company	Length of Service of Current Position	Principal Occupation During Past Five Years
Jeff Diamond (1960)	Vice President	Elected in 2008	Portfolio Manager, joined Lord Abbett in 2007 and was formerly a Managing Director at Axia Capital Management LLC (2004 - 2006).
John K. Forst (1960)	Vice President and Assistant Secretary	Elected in 2005	Deputy General Counsel, joined Lord Abbett in 2004.
Michael S. Goldstein (1968)	Vice President	Elected in 1999	Partner and Portfolio Manager, joined Lord Abbett in 1997.
Lawrence H. Kaplan (1957)	Vice President and Secretary	Elected in 1997	Partner and General Counsel, joined Lord Abbett in 1997.
Deepak Khanna (1963)	Vice President	Elected in 2008	Portfolio Manager, rejoined Lord Abbett in 2007 from Jennison Associates LLC (2005 - 2007). Mr. Khanna’s former experience at Lord Abbett included Senior Research Analyst — other investment strategies (2000 - 2005).
David J. Linsen (1974)	Vice President	Elected in 2008	Director and Portfolio Manager, joined Lord Abbett in 2001.
Elizabeth O. MacLean (1966)	Vice President	Elected in 2008	Partner and Portfolio Manager, joined Lord Abbett in 2006 and was formerly a Managing Director/Portfolio Manager at Nomura Corporate Research and Asset Management, Inc. (2000 - 2006).
A. Edward Oberhaus, III (1959)	Vice President	Elected in 1998	Partner and Director, joined Lord Abbett in 1983.
Todor Petrov (1974)	Vice President	Elected in 2008	Portfolio Manager, joined Lord Abbett in 2003.
Thomas R. Phillips (1960)	Vice President and Assistant Secretary	Elected in 2008	Deputy General Counsel, joined Lord Abbett in 2006 and was formerly an attorney at Morgan, Lewis & Bockius LLP.
Randy M. Reynolds (1972)	Vice President	Elected in 2008	Portfolio Manager, joined Lord Abbett in 1999.

25

Basic Information About Management (concluded)

Name and Year of Birth	Current Position with Company	Length of Service of Current Position	Principal Occupation During Past Five Years
Lawrence D. Sachs (1963)	Vice President	Elected in 2010	Partner and Portfolio Manager, joined Lord Abbett in 2001.
Lawrence B. Stoller (1963)	Vice President and Assistant Secretary	Elected in 2007	Senior Deputy General Counsel, joined Lord Abbett in 2007 and was formerly an Executive Vice President and General Counsel at Cohen & Steers Capital Management, Inc. (1999 - 2007).
Bernard J. Grzelak (1971)	Treasurer	Elected in 2003	Partner and Director of Fund Administration, joined Lord Abbett in 2003.

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

26

Approval of Advisory Contract

At meetings held on December 16 and 17, 2009, the Board, including all of the Directors who are not interested persons of the Fund or Lord, Abbett & Co. LLC. (“Lord Abbett”), considered whether to approve the continuation of the existing management agreement between the Fund and Lord Abbett. In addition to the materials the Board had reviewed throughout the course of the year, the Board received materials relating to the management agreement before the meeting and had the opportunity to ask questions and request further information in connection with its consideration. The Board also took into account its familiarity with Lord Abbett gained through its previous meetings and discussions, and the examination of the portfolio management team conducted by members of the Contract Committee during the year.

The materials received by the Board included, but were not limited to, (1) information provided by Lipper Inc. regarding the investment performance of the Fund compared to the investment performance of one or more groups of funds with substantially similar investment objectives (the “performance universe”) and to the investment performance of an appropriate securities index, (2) information on the expense ratios, effective management fee rates, and other expense components, for the Fund and one or more groups of funds with similar objectives and of similar size (the “peer group”), (3) sales and redemption information for the Fund, (4) information regarding Lord Abbett’s financial condition, (5) an analysis of the relative profitability of the management agreement to Lord Abbett, (6) information regarding the distribution arrangements of the Fund, and (7) information regarding the personnel and other resources devoted by Lord Abbett to managing the Fund.

Investment Management Services Generally. The Board considered the investment management services provided by Lord Abbett to the Fund, including investment research, portfolio management, and trading, and Lord Abbett’s commitment to compliance with all relevant legal requirements. The Board also observed that Lord Abbett was solely engaged in the investment management business and accordingly did not experience the conflicts of interest resulting from being engaged in other lines of business. The Board noted that in recent years Lord Abbett had not used brokerage commissions to purchase third-party research, but had changed this practice in 2009, as it had previously discussed with the Board. The Board considered the investment advisory services provided by Lord Abbett to other clients, the fees charged for the services, and the differences in the nature of the services provided to the Fund and other Lord Abbett Funds, on the one hand, and the services provided to other clients, on the other.

Investment Performance and Compliance. The Board reviewed the Fund’s investment performance in relation to that of the performance universe, both in terms of total return and in terms of other statistical measures. The Board observed that the investment performance of the Fund was in the third quintile of its peer group for the nine-month period and in the first quintile for the one-year, three-year, and five-year periods. The Board also observed that the investment performance was lower than that of the Lipper Variable Underlying Funds Multi-Cap Value Index for the nine-month period and higher than that of the Index for the one-year, three-year, and five-year periods. The Board also noted that the Fund’s investment objective, strategy, and investment team were identical to those of Securities Trust — Fundamental Equity Fund and that the performance of the Class A shares of Fundamental Equity Fund was in the second quintile of its performance universe and higher than the relevant Lipper index for the ten-year period.

Lord Abbett’s Personnel and Methods. The Board considered the qualifications of the personnel providing investment management services to the Fund, in light of its investment

27

objective and discipline. Among other things, the Board considered the size, experience, and turnover of Lord Abbett’s investment management staff, Lord Abbett’s investment methodology and philosophy, and Lord Abbett’s approach to recruiting, training, and retaining investment management personnel. The Board also observed that in 2009 one of the Fund’s portfolio managers, Howard E. Hansen, had left Lord Abbett, with Robert P. Fetch continuing as portfolio manager for the Fund, assisted by Deepak Khanna. The Board determined that Lord Abbett had the expertise and resources to manage the Fund effectively.

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

Expenses. The Board considered the expense levels of the Fund and the expense levels of the peer group. The Board considered the fiscal periods on which the peer group information was based, and noted that such periods ended before September 30, 2009. The Board noted that the expense levels of the peer group likely would have been different for periods ending September 30, 2009, due to the lower asset levels prevailing in the mutual fund industry during much of 2009. The Board also observed that the Fund’s transfer agency expenses were likely to decrease in 2010, as a result of renegotiation of the transfer agency agreement. It also considered the amount and nature of the fees paid by shareholders. The Board noted that it and Lord Abbett had agreed to an expense reimbursement agreement through April 30, 2009 that limited all expenses other than management fees to not more than 0.40%, but that Lord Abbett had not entered into a new agreement, and instead had made voluntary reimbursements that had the effect of keeping the total expense ratio at 1.15%, which reimbursements it could end at any time. The Board observed that for the year-to-date period ended September 30, 2009 (annualized) the contractual management and administrative services fee rates were approximately four basis points above the median of the peer group and the actual management and administrative services fee rates were approximately fourteen basis points above the median of the peer group. The Board observed that for the year-to-date period ended September 30, 2009 (annualized) the Fund’s total expense ratio was approximately nine basis points above the median of the peer group. The Board also considered that Lord Abbett voluntarily intended to waive its management fee and/or administrative service fee and/or voluntarily reimburse expenses to maintain the current expense ratio, and considered what the Fund’s expense ratio likely would be if Lord Abbett did not voluntarily waive its fees or reimburse any expenses and how that expense ratio would compare to that of the peer group.

Profitability. The Board considered the level of Lord Abbett’s profits in managing the Fund, including a review of Lord Abbett’s methodology for allocating its costs to its management of the Fund. The Board concluded that the allocation methodology had a reasonable basis and was appropriate. It considered any profits realized by Lord Abbett in connection with the operation of the Fund and whether the amount of profit was fair for the management of the Fund. The Board also considered the profits realized from other businesses of Lord Abbett, which may benefit from or be related to the Fund’s business. The Board considered Lord Abbett’s profit margins in comparison with available industry data, both accounting for and ignoring marketing and distribution expenses, and how those profit margins could affect Lord Abbett’s ability to recruit and retain investment personnel. The Board recognized that Lord Abbett’s profitability was a factor in enabling it to attract and retain qualified investment management personnel to provide services to the Fund. The Board noted that Lord Abbett’s overall profitability had decreased in its 2009 fiscal

28

year, largely due to declines in market prices and shareholder redemptions. The Board concluded that Lord Abbett’s profitability overall and as to the Fund was not excessive.

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

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

Alternative Arrangements. The Board considered whether, instead of approving continuation of the management agreement, it might be in the best interests of the Fund to implement one or more alternative arrangements, such as continuing to employ Lord Abbett, but on different terms.

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

29

Householding

The 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 need additional copies or do not want your mailings to be “householded,” please call Lord Abbett at 888-522-2388 or send a written request with your name, the name of your fund or funds and your account number or numbers to Lord Abbett Family of Funds, P.O. Box 219336, Kansas City, MO 64121.

Proxy Voting Policies, Procedures and Records

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

Shareholder Reports and Quarterly Portfolio Disclosure

The Fund is required to file its complete schedule of portfolio holdings with the SEC for its first and third fiscal quarters on Form N-Q. Copies of the filings are available without charge, upon request on the SEC’s Website at www.sec.gov and may be available by calling Lord Abbett at 888-522-2388. You can also obtain copies of Form N-Q by (i) visiting the SEC’s Public Reference Room in Washington, DC (information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330); (ii) sending your request and duplicating fee to the SEC’s Public Reference Section, Washington, DC 20549-1520; or (iii) sending your request electronically, after paying a duplicating fee, to publicinfo@sec.gov.

Tax Information

For corporate shareholders, 100% of the ordinary income distribution paid by the Fund during the fiscal year ended December 31, 2009 qualified for the dividends received deduction.

30

This report, when not used for the general information of shareholders of the Fund, is to be distributed only if preceded or accompanied by a current fund prospectus.

Lord Abbett mutual fund shares are distributed by LORD ABBETT DISTRIBUTOR LLC.

Lord Abbett Series Fund, Inc.

All Value Portfolio

LASFAV-2-1209

(02/10)

2009

LORD ABBETT

ANNUAL

REPORT    

Lord Abbett

Series Fund—America’s Value Portfolio

For the fiscal year ended December 31, 2009

Lord Abbett Series Fund — America’s Value Portfolio

Annual Report

For the fiscal year ended December 31, 2009

From left to right: Robert S. Dow, Director and Chairman of the Lord Abbett Funds; E. Thayer Bigelow, Independent Lead Director of the Lord Abbett Funds; and Daria L. Foster, Director and President of the Lord Abbett Funds.

Dear Shareholders: We are pleased to provide you with this overview of the Lord Abbett Series Fund — America’s Value Portfolio’s performance for the fiscal year ended December 31, 2009. On this page and the following pages, we discuss the major factors that influenced performance. For detailed and more timely information about the Fund, please visit our Website at www.lordabbett.com, where you also can access the quarterly commentaries by the Fund’s portfolio manager.

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

Best regards,

Robert S. Dow

Chairman

Q: What were the overall market conditions during the fiscal year ended December 31, 2009?

A: After a difficult start to the year, the equity markets (as represented by the S&P 500^® Index¹) recovered during the balance of the period, ending the year up 26.46%. This improvement enabled some investors to recover a portion of their previous losses.

Overall, most equity asset classes and investing styles trended higher throughout the period. Mid cap stocks (as defined by the Russell MidCap^® Index ²) generally outperformed large cap stocks (as measured by the Russell 1000^® Index³) and small cap stocks (as measured by the Russell 2000^® Index⁴). Growth stocks (as represented by the Russell 3000^® Growth Index⁵) generally outperformed value stocks (as represented by the Russell 3000^® Value Index⁶) for the fiscal year.

In the fixed income market, the assumption of credit risk was rewarded in the 12-month period. In general, lower credit quality securities outperformed those with higher credit quality ratings. The investment-grade corporate bond market (as measured by the Barclays Capital U.S. Aggregate Bond Index⁷)

1

returned 5.93% while high-yield bonds (as measured by the BofA Merrill Lynch High Yield Master II Constrained Index⁸) returned 58.10%. Specifically, the BofA Merrill Lynch U.S. High Yield CCC-Rated Index⁹ led major bond indexes with a total return of 96.79%, followed by the BofA Merrill Lynch U.S. High Yield B-Rated Index⁹ up 47.64%, and the BofA Merrill Lynch U.S. High Yield BB-Rated Index ⁹ up 45.21%. This trend was similar within convertible securities, with lower-rated credits outperforming higher-rated by a wide margin.

Q: How did the America’s Value Portfolio perform during the fiscal year ended December 31, 2009?

A: The Fund returned 23.41%, reflecting performance at the net asset value (NAV) of Class VC shares, with all distributions reinvested, compared to its benchmark, the S&P 500 Index, which posted a total return of 26.46% in the same period.

Note: Lord Abbett America’s Value Portfolio is not a balanced fund and has the capability to adjust equity and fixed-income allocations, based on relative value in the market and the investment team’s proprietary fundamental research.

Q: What were the most significant factors affecting performance?

As the market continued to reflect expectations for better economic conditions ahead, the composition of the portfolio was further adjusted to benefit from the change in sentiment.

The Fund continued to build its equity and convertible allocation throughout the year. The portfolio’s security selection in the telecommunication services sector contributed to relative performance. In the consumer staples sector, the portfolio’s security selection detracted from relative performance as many stable global companies did not advance to the extent of the broader market, as measured by the S&P 500 Index. The portfolio’s underweight in the consumer discretionary sector detracted from performance as this sector was a top performer in the benchmark.

Within the fixed-income portion of the portfolio, as the year progressed, the Fund maintained an overweight in the high-yield sector. This helped performance as the high-yield market continued to post strong returns. The Fund also deemphasized interest-rate sensitive holdings in the portfolio in favor of credit-sensitive ‘BBB’ investment-grade corporates. After reducing allocations of ‘AAA’ rated agency mortgage-backed securities (MBS) and agency debt throughout the year, the portfolio had a zero allocation to all such positions by fiscal year-end. This benefited performance as corporate spreads continued to tighten significantly.

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

2

¹  The S&P 500^® Index is widely regarded as the standard for measuring large-cap U.S. stock market performance and includes a representative sample of leading companies in leading industries.

²  The Russell Midcap^® Index measures the performance of the 800 smallest companies in the Russell 1000 Index, which represents approximately 25% of the total market capitalization of the Russell 1000 Index.

³  The Russell 1000^® Index measures the performance of the 1,000 largest companies in the Russell 3000 Index, which represents approximately 92% of the total market capitalization of the Russell 3000 Index.

⁴  The Russell 2000^® Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index.

⁵  The Russell 3000^® Growth Index measures the performance of those Russell 3000^® Index companies with higher price-to-book ratios and higher forecasted growth values. The stocks in this index are also members of either the Russell 1000^® Growth or the Russell 2000^® Growth indexes.

⁶  The Russell 3000^® Value Index measures the performance of those Russell 3000 Index companies with lower price-to-book ratios and lower forecasted growth values. The stocks in this index are also members of either the Russell 1000^® Value or the Russell 2000^® Value indexes.

⁷  The Barclays Capital U.S. Aggregate Bond Index represents securities that are U.S. domestic, taxable, nonconvertible, and dollar denominated. The index covers the investment-grade, fixed-rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities.

⁸  The BofA Merrill Lynch High Yield Master II Constrained Index is a market value-weighted index of all domestic and Yankee high-yield bonds, including deferred interest bonds and payment-in-kind securities. Issues included in the index have maturities of one year or more and have a credit rating lower than BBB-/Baa3, but are not in default. The BofA Merrill Lynch High Yield Master II Constrained Index limits any individual issuer to a maximum of 2% benchmark exposure.

⁹  The BofA Merrill Lynch U.S. High Yield Index tracks the performance of below investment grade U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market (includes Yankee bonds). The indexes for CCC, B, BB, and speculative are part of the BofA Merrill Lynch U.S. High Yield Index, with the only difference being the addition of a ratings filter.

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

Important Performance and Other Information

Performance data quoted 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 www.lordabbett.com.

During the period covered in this report, expense waivers and reimbursements were in place. Without such expense waivers and reimbursements, the Fund’s returns would have been lower.

The views of the Fund’s management and the portfolio holdings described in this report are as of December 31, 2009; these views and portfolio holdings may have changed subsequent to this date, and they do not guarantee the future performance of the markets or the Fund. Information provided in this report should not be considered a recommendation to purchase or sell securities.

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

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

The Fund serves as an underlying investment vehicle for variable annuity contracts and variable life insurance policies.

3

Investment Comparison

Below is a comparison of a $10,000 investment in Class VC shares with the same investment in the S&P 500^® Index and the 60% S&P 500^® Index/40% Barclays Capital U.S. Aggregate Bond Index, assuming reinvestment of all dividends and distributions. The Fund’s shares are sold only to insurance company separate accounts that fund certain variable annuity and variable life contracts. The line graph comparison does not reflect the sales charges or other expenses of these contracts. If those sales charges and expenses were reflected, returns would be less. The graph and performance table below do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. During certain periods, expenses of the Fund have been waived or reimbursed by Lord Abbett; without such waiver or reimbursement of expenses, the Fund’s returns would have been lower. Past performance is no guarantee of future results.

Average Annual Total Returns for the

Periods Ended December 31, 2009

	1 Year	5 Years	Life of Class
Class VC2	23.41%	2.24%	7.34%

¹     Performance for each unmanaged index does not reflect transaction costs, management fees or sales charges. The performance of each index is not necessarily representative of the Fund’s performance. Performance for the index begins on April 30, 2003.

²    The Class VC shares were first offered on April 30, 2003.

4

Expense Example

As 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 ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2009 through December 31, 2009).

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 products that invest in the Fund, are not reflected in this Example. If such fees and expenses were reflected in the Example, the total expenses shown would be higher. Fees and expenses regarding such variable insurance products are separately described in the prospectus related to those products.

Actual Expenses

The first line of the table on the following page provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading titled “Expenses Paid During the Period 7/1/09 – 12/31/09” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

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

5

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

	Beginning Account Value		Ending Account Value		Expenses Paid During the Period†
	7/1/09		12/31/09		7/1/09 - 12/31/09
Class VC
Actual	$	1,000.00	$	1,182.20	$	6.33
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.42	$	5.85

^† Net expenses are equal to the Fund’s annualized expense ratio of 1.15%, multiplied by the average account value over the period, multiplied by 184/365 (to reflect one-half year period).

Portfolio Holdings Presented by Sector

December 31, 2009

Sector*	%**
Consumer Discretionary	10.42%
Consumer Staples	9.66%
Energy	11.21%
Financials	13.34%
Healthcare	11.72%
Industrials	9.61%
Information Technology	13.65%
Materials	6.03%
Telecommunication Services	5.64%
Utilities	4.44%
Short-Term Investment	4.28%
Total	100.00%

* A sector may comprise several industries.

** Represents percent of total investments.

6

Schedule of Investments

December 31, 2009

Investments	Shares (000)	Value
LONG-TERM INVESTMENTS 95.27%
COMMON STOCKS 54.46%
Aerospace & Defense 1.21%
DigitalGlobe, Inc.*	5	$	121,000
Hexcel Corp.*	25		324,500
Honeywell International, Inc.	8		294,000
Lockheed Martin Corp.	4		263,725
Moog, Inc. Class A*	14		409,220
Total			1,412,445
Automobiles 0.32%
Honda Motor Co., Ltd. ADR	11		372,900
Beverages 0.62%
PepsiCo, Inc.	12		729,600
Biotechnology 1.51%
Amgen, Inc.*	7		367,705
BioMarin Pharmaceutical, Inc.*	17		319,770
Celgene Corp.*	15		835,200
Genzyme Corp.*	5		245,050
Total			1,767,725
Capital Markets 1.41%
Bank of New York Mellon Corp. (The)	18		489,475
Franklin Resources, Inc.	3		316,050
Morgan Stanley	8		236,800
State Street Corp.	9		391,860
T. Rowe Price Group, Inc.	4		213,000
Total			1,647,185
Chemicals 1.06%
Dow Chemical Co. (The)	15		414,450
Monsanto Co.	7		531,375
Rockwood Holdings, Inc.*	13		294,500
Total			1,240,325
Commercial Banks 1.88%
Fifth Third Bancorp	25		243,750

See Notes to Financial Statements.

7

Schedule of Investments (continued)

December 31, 2009

Investments	Shares (000)	Value
Commercial Banks (continued)
PNC Financial Services Group, Inc. (The)	10	$	527,900
SunTrust Banks, Inc.	11		213,045
U.S. Bancorp	30		675,300
Wells Fargo & Co.	20		539,800
Total			2,199,795
Commercial Services & Supplies 0.29%
R.R. Donnelley & Sons Co.	15		334,050
Communications Equipment 0.98%
JDS Uniphase Corp.*	35		288,750
QUALCOMM, Inc.	19		855,810
Total			1,144,560
Computers & Peripherals 2.58%
Apple, Inc.*	5		948,870
Hewlett-Packard Co.	20		1,030,200
International Business Machines Corp.	5		654,500
QLogic Corp.*	20		377,400
Total			3,010,970
Construction Materials 0.35%
Cemex SAB de CV ADR*	34		406,608
Consumer Finance 0.39%
Capital One Financial Corp.	12		460,080
Distributors 0.46%
Genuine Parts Co.	14		531,440
Diversified Financial Services 2.10%
Bank of America Corp.	52		783,120
JPMorgan Chase & Co.	40		1,666,800
Total			2,449,920
Diversified Telecommunication Services 2.88%
AT&T, Inc.	60		1,681,800
CenturyTel, Inc.	12		434,520
Qwest Communications International, Inc.	125		526,250
Verizon Communications, Inc.	15		496,950

See Notes to Financial Statements.

8

Schedule of Investments (continued)

December 31, 2009

Investments	Shares (000)	Value
Diversified Telecommunication Services (continued)
Windstream Corp.	20	$	219,800
Total			3,359,320
Electric: Utilities 0.41%
UniSource Energy Corp.	15		482,850
Electrical Equipment 0.76%
Baldor Electric Co.	8		210,675
Emerson Electric Co.	16		681,600
Total			892,275
Electronic Equipment, Instruments & Components 0.62%
Corning, Inc.	12		231,720
FLIR Systems, Inc.*	15		490,800
Total			722,520
Energy Equipment & Services 0.92%
Halliburton Co.	15		451,350
Transocean Ltd. (Switzerland)*(a)	8		621,000
Total			1,072,350
Food & Staples Retailing 1.84%
CVS Caremark Corp.	10		322,100
Ingles Markets, Inc. Class A	32		478,108
Kroger Co. (The)	10		205,300
SUPERVALU, INC.	18		228,780
Wal-Mart Stores, Inc.	17		908,650
Total			2,142,938
Food Products 3.34%
Campbell Soup Co.	21		709,800
H.J. Heinz Co.	27		1,154,520
Kellogg Co.	23		1,223,600
Kraft Foods, Inc. Class A	30		815,400
Total			3,903,320
Hotels, Restaurants & Leisure 1.58%
Carnival Corp. Unit*	9		269,365
Marriott International, Inc. Class A	19		507,749

See Notes to Financial Statements.

9

Schedule of Investments (continued)

December 31, 2009

Investments	Shares (000)		Value
Hotels, Restaurants & Leisure (continued)
McDonald’s Corp.	10		$	624,400
Starwood Hotels & Resorts Worldwide, Inc.	12			438,840
Total				1,840,354
Household Products 0.57%
Procter & Gamble Co. (The)	11			666,930
Industrial Conglomerates 1.05%
3M Co.	7			578,690
General Electric Co.	43			650,590
Total				1,229,280
Information Technology Services 0.79%
SAIC, Inc.*	40			757,600
SRA International, Inc. Class A*	9			162,350
Total				919,950
Insurance 1.19%
ACE Ltd. (Switzerland)*(a)	17			856,800
MetLife, Inc.	15			537,037
Total				1,393,837
Internet Software & Services 0.21%
Sohu.com, Inc. (China)*(a)	4			246,304
Machinery 1.94%
Actuant Corp. Class A	25			463,250
Danaher Corp.	8			564,000
Oshkosh Corp.	6			222,180
Snap-on, Inc.	24			1,014,240
Total				2,263,670
Media 0.47%
CCH I LLC Class A(b)	3			121,055
Charter Communications, Inc. Class A*(c)	—	(d)		28,329
Walt Disney Co. (The)	13			403,125
Total				552,509
Metals & Mining 0.56%
Allegheny Technologies, Inc.	6			246,235

See Notes to Financial Statements.

10

Schedule of Investments (continued)

December 31, 2009

Investments	Shares (000)	Value
Metals & Mining (continued)
Titanium Metals Corp.*	13	$	156,500
United States Steel Corp.	5		248,040
Total			650,775
Multi-Line Retail 1.57%
J.C. Penney Co., Inc.	13		332,625
Kohl’s Corp.*	10		539,300
Nordstrom, Inc.	5		187,900
Target Corp.	16		773,920
Total			1,833,745
Multi-Utilities 0.29%
Ameren Corp.	12		335,400
Oil, Gas & Consumable Fuels 7.10%
Chevron Corp.	26		2,009,439
ConocoPhillips	29		1,455,495
Continental Resources, Inc.*	9		364,565
Devon Energy Corp.	4		257,250
EOG Resources, Inc.	16		1,508,150
Exxon Mobil Corp.	16		1,091,040
Hess Corp.	9		550,550
Marathon Oil Corp.	14		437,080
Petroleo Brasileiro SA ADR	9		381,510
XTO Energy, Inc.	5		232,650
Total			8,287,729
Pharmaceuticals 5.14%
Bristol-Myers Squibb Co.	30		757,500
Johnson & Johnson	17		1,094,970
Merck & Co., Inc.	10		365,400
Mylan, Inc.*	115		2,123,136
Pfizer, Inc.	62		1,127,780
Teva Pharmaceutical Industries Ltd. ADR	9		528,092
Total			5,996,878
Road & Rail 1.14%
Burlington Northern Santa Fe Corp.	8		788,960

See Notes to Financial Statements.

11

Schedule of Investments (continued)

December 31, 2009

Investments	Shares (000)	Value
Road & Rail (continued)
Union Pacific Corp.	9	$	543,150
Total			1,332,110
Semiconductors & Semiconductor Equipment 1.34%
Broadcom Corp. Class A*	17		534,650
Intel Corp.	21		428,400
Micron Technology, Inc.*	35		369,600
Taiwan Semiconductor Manufacturing Co., Ltd. ADR	20		229,933
Total			1,562,583
Software 3.11%
Adobe Systems, Inc.*	17		625,260
Citrix Systems, Inc.*	17		707,370
Microsoft Corp.	57		1,737,930
Oracle Corp.	23		564,420
Total			3,634,980
Specialty Retail 0.20%
Home Depot, Inc. (The)	8		231,440
Textiles, Apparel & Luxury Goods 0.28%
NIKE, Inc. Class B	5		330,350
Total Common Stocks (cost $58,880,447)			63,592,000

	Interest Rate	Maturity Date	Principal Amount (000)
CONVERTIBLE BONDS 8.70%
Aerospace & Defense 0.62%
GenCorp, Inc.	2.25%	11/15/2024	$	225	202,781
L-3 Communications Holdings, Inc.	3.00%	8/1/2035		500	527,500
Total					730,281
Beverages 0.33%
Molson Coors Brewing Co.	2.50%	7/30/2013		350	388,500
Biotechnology 1.44%
BioMarin Pharmaceutical, Inc.	2.50%	3/29/2013		350	449,313
Gilead Sciences, Inc.	0.625%	5/1/2013		700	867,125

See Notes to Financial Statements.

12

Schedule of Investments (continued)

December 31, 2009

Investments	Interest Rate	Maturity Date	Principal Amount (000)		Value
Biotechnology (continued)
Millipore Corp.	3.75%	6/1/2026	$	350	$	362,688
Total						1,679,126
Commercial Services & Supplies 0.49%
CRA International, Inc.	2.875%	6/15/2034		250		246,563
FTI Consulting, Inc.	3.75%	7/15/2012		200		322,500
Total						569,063
Communications Equipment 0.26%
Ciena Corp.	0.25%	5/1/2013		400		304,000
Computers & Peripherals 0.66%
NetApp, Inc.	1.75%	6/1/2013		150		186,750
SanDisk Corp.	1.00%	5/15/2013		700		587,125
Total						773,875
Electrical Equipment 0.60%
General Cable Corp. (2.25% after 11/15/19)	4.50%	11/15/2029		231		238,796
Roper Industries, Inc.	Zero Coupon	1/15/2034		700		459,375
Total						698,171
Electronic Equipment, Instruments & Components 0.37%
Itron, Inc.	2.50%	8/1/2026		350		438,375
Energy Equipment & Services 0.20%
SunPower Corp.	4.75%	4/15/2014		200		228,750
Healthcare Providers & Services 0.40%
Five Star Quality Care, Inc.	3.75%	10/15/2026		575		465,031
Information Technology Services 0.47%
Symantec Corp.	0.75%	6/15/2011		500		546,250
Metals & Mining 0.69%
ArcelorMittal (Luxembourg)(a)	5.00%	5/15/2014		150		249,188
Newmont Mining Corp.	1.25%	7/15/2014		350		438,375
Newmont Mining Corp.	3.00%	2/15/2012		90		113,850
Total						801,413
Pharmaceuticals 0.79%
Teva Pharmaceutical Finance Co. BV (Israel)(a)	1.75%	2/1/2026		750		928,125

See Notes to Financial Statements.

13

Schedule of Investments (continued)

December 31, 2009

Investments	Interest Rate	Maturity Date	Principal Amount (000)			Value
Real Estate Management & Development 0.28%
ProLogis	2.25%	4/1/2037	$	350		$	326,375
Semiconductors & Semiconductor Equipment 0.53%
Advanced Micro Devices, Inc.	5.75%	8/15/2012		130			128,863
Intel Corp.	2.95%	12/15/2035		500			485,000
Total							613,863
Software 0.57%
EMC Corp.	1.75%	12/1/2011		400			488,000
Sybase, Inc.†	3.50%	8/15/2029		150			178,500
Total							666,500
Total Convertible Bonds (cost $9,788,491)							10,157,698
			Shares (000)
CONVERTIBLE PREFERRED STOCKS 5.61%
Commercial Banks 0.98%
Wells Fargo & Co.	7.50%			1			1,147,500
Diversified Financial Services 1.27%
AMG Capital Trust I	5.10%			12			480,000
Bank of America Corp.	7.25%			—	(d)		615,300
Bank of America Corp.	10.00%			9			134,280
Citigroup, Inc.	7.50%			2			250,416
Total							1,479,996
Electric: Utilities 0.31%
FPL Group, Inc.	8.375%			7			365,050
Food Products 1.13%
Archer Daniels Midland Co.	6.25%			18			784,980
Bunge Ltd.	4.875%			6			537,000
Total							1,321,980
Insurance 0.36%
XL Capital Ltd.	10.75%			15			418,800
Metals & Mining 0.25%
Freeport-McMoRan Copper & Gold, Inc.	6.75%			3			288,000

See Notes to Financial Statements.

14

Schedule of Investments (continued)

December 31, 2009

Investments	Interest Rate		Shares (000)			Value
Oil, Gas & Consumable Fuels 0.62%
El Paso Corp.	4.99%			—	(d)	$	723,200
Pharmaceuticals 0.68%
Mylan, Inc.	6.50%			—	(d)		797,300
Thrifts & Mortgage Finance 0.01%
Fannie Mae	8.75%			6			10,680
Total Convertible Preferred Stocks (cost $6,455,200)							6,552,506
		Maturity Date	Principal Amount (000)
FLOATING RATE LOANS(e) 0.38%
Diversified Financial Services 0.20%
Nuveen Investments, Inc. 2nd Lien Term Loan	12.50%	7/31/2015	$	225			235,406
Electronic Equipment, Instruments & Components 0.18%
Palm, Inc. Term Loan	3.76%	10/24/2014		249			216,412
Total Floating Rate Loans (cost $429,507)							451,818
			Shares (000)
FOREIGN COMMON STOCKS(f) 3.52%
China 0.30%
Metals & Mining
China Zhongwang Holdings Ltd.*				442			352,389
France 0.49%
Automobiles 0.30%
Renault SA*				7			353,456
Commercial Banks 0.19%
BNP Paribas SA				3			222,725
Total							576,181

See Notes to Financial Statements.

15

Schedule of Investments (continued)

December 31, 2009

Investments			Shares (000)		Value
Germany 1.18%
Diversified Telecommunication Services 0.32%
Deutsche Telekom AG Registered Shares				25	$	372,613
Household Products 0.55%
Henkel KGaA				14		641,149
Metals & Mining 0.31%
ThyssenKrupp AG				10		358,818
Total						1,372,580
Greece 0.18%
Commercial Banks
National Bank of Greece SA*				8		211,547
Japan 0.30%
Household Durables
Sony Corp.				12		348,861
Switzerland 1.07%
Capital Markets 0.20%
Credit Suisse Group AG Registered Shares				5		232,844
Food Products 0.32%
Nestle SA Registered Shares				8		371,670
Pharmaceuticals 0.55%
Roche Holding Ltd. AG				4		641,127
Total						1,245,641
Total Foreign Common Stocks (cost $4,155,788)						4,107,199
	Interest Rate	Maturity Date	Principal Amount (000)
HIGH YIELD CORPORATE BONDS 22.58%
Aerospace & Defense 0.22%
GeoEye, Inc.†	9.625%	10/1/2015	$	250		258,438
Air Freight & Logistics 0.25%
Park-Ohio Industries, Inc.	8.375%	11/15/2014		375		289,687

See Notes to Financial Statements.

16

Schedule of Investments (continued)

December 31, 2009

Investments	Interest Rate	Maturity Date	Principal Amount (000)		Value
Auto Components 0.09%
Cooper-Standard Automotive, Inc.(g)	8.375%	12/15/2014	$	100	$	26,000
Goodyear Tire & Rubber Co. (The)	10.50%	5/15/2016		75		83,250
Total						109,250
Automobiles 0.31%
TRW Automotive, Inc.†	8.875%	12/1/2017		350		365,750
Beverages 0.17%
Constellation Brands, Inc.	8.125%	1/15/2012		200		201,750
Capital Markets 0.41%
International Lease Finance Corp.	6.375%	3/25/2013		250		205,686
Raymond James Financial, Inc.	8.60%	8/15/2019		250		270,911
Total						476,597
Chemicals 0.62%
Dow Chemical Co. (The)	8.55%	5/15/2019		150		179,271
Equistar Chemicals LP(g)	7.55%	2/15/2026		200		143,000
INEOS Group Holdings plc (United Kingdom)†(a)	8.50%	2/15/2016		600		406,500
Total						728,771
Commercial Banks 0.19%
Zions Bancorp	7.75%	9/23/2014		250		220,834
Commercial Services & Supplies 0.37%
Bunge NA Finance LP	5.90%	4/1/2017		175		173,487
First Data Corp.	9.875%	9/24/2015		275		257,812
Total						431,299
Communications Equipment 0.22%
Hughes Network Systems LLC	9.50%	4/15/2014		250		259,375
Construction & Engineering 0.14%
K. Hovnanian Enterprises, Inc.†	10.625%	10/15/2016		150		157,500
Consumer Finance 0.56%
American Express Credit Corp.	7.30%	8/20/2013		350		393,675
Ford Motor Credit Co. LLC	8.00%	6/1/2014		250		256,933
Total						650,608

See Notes to Financial Statements.

17

Schedule of Investments (continued)

December 31, 2009

Investments	Interest Rate	Maturity Date	Principal Amount (000)		Value
Containers & Packaging 1.11%
Ball Corp.	7.375%	9/1/2019	$	425	$	438,812
Crown Cork & Seal Co., Inc.	7.375%	12/15/2026		350		326,375
Graphic Packaging International Corp.	9.50%	8/15/2013		250		259,375
Sealed Air Corp.†	7.875%	6/15/2017		250		266,667
Total						1,291,229
Diversified Financial Services 1.13%
Capital One Capital VI	8.875%	5/15/2040		250		268,125
New York City Industrial Development Agency†	11.00%	3/1/2029		200		222,316
RBS Global & Rexnord Corp.	8.875%	9/1/2016		350		306,250
RBS Global & Rexnord Corp.	9.50%	8/1/2014		100		100,750
RBS Global & Rexnord Corp.	11.75%	8/1/2016		350		348,250
Wachovia Capital Trust III	5.80%	3/29/2049		100		77,500
Total						1,323,191
Diversified Telecommunication Services 1.65%
Cincinnati Bell, Inc.	7.00%	2/15/2015		500		496,250
SBA Telecommunications, Inc.†	8.25%	8/15/2019		300		319,500
Syniverse Technologies, Inc.	7.75%	8/15/2013		500		499,375
Windstream Corp.	7.00%	3/15/2019		650		611,000
Total						1,926,125
Electric: Utilities 1.86%
Central Illinois Light Co.	8.875%	12/15/2013		300		339,758
Edison Mission Energy	7.75%	6/15/2016		700		598,500
Illinois Power Co.	9.75%	11/15/2018		150		186,812
Northeast Utilities	5.65%	6/1/2013		360		372,703
RRI Energy, Inc.	6.75%	12/15/2014		182		186,550
Texas Competitive Electric Holdings Co. LLC	10.25%	11/1/2015		600		489,000
Total						2,173,323
Electrical Equipment 0.49%
Baldor Electric Co.	8.625%	2/15/2017		400		411,000
Roper Industries, Inc.	6.625%	8/15/2013		150		163,492
Total						574,492
Electronic Equipment, Instruments & Components 0.27%
Agilent Technologies, Inc.	5.50%	9/14/2015		300		314,844

See Notes to Financial Statements.

18

Schedule of Investments (continued)

December 31, 2009

Investments	Interest Rate	Maturity Date	Principal Amount (000)		Value
Energy Equipment & Services 0.08%
Hornbeck Offshore Services, Inc. Series B	6.125%	12/1/2014	$	100	$	93,875
Food & Staples Retailing 0.44%
Duane Reade, Inc.	11.75%	8/1/2015		350		381,500
Rite Aid Corp.	9.375%	12/15/2015		150		132,750
Total						514,250
Healthcare Equipment & Supplies 0.57%
Bausch & Lomb, Inc.	9.875%	11/1/2015		25		26,500
Biomet, Inc.	10.00%	10/15/2017		200		218,250
HCA, Inc.	9.125%	11/15/2014		400		423,000
Total						667,750
Healthcare Providers & Services 0.58%
Community Health Systems, Inc.	8.875%	7/15/2015		400		415,000
United Surgical Partners International, Inc. PIK	9.25%	5/1/2017		250		256,250
Total						671,250
Hotels, Restaurants & Leisure 1.15%
Hyatt Hotels Corp.†	5.75%	8/15/2015		355		357,552
McDonald’s Corp.	5.00%	2/1/2019		350		366,488
River Rock Entertainment Authority (The)	9.75%	11/1/2011		20		18,950
Starwood Hotels & Resorts Worldwide, Inc.	7.875%	10/15/2014		300		322,125
Station Casinos, Inc.(g)	6.50%	2/1/2014		250		2,500
Wendy’s/Arby’s Restaurants LLC	10.00%	7/15/2016		250		273,750
Total						1,341,365
Household Durables 0.51%
Beazer Homes USA, Inc.	8.375%	4/15/2012		75		70,875
Lennar Corp.	12.25%	6/1/2017		250		302,500
Whirlpool Corp.	8.60%	5/1/2014		200		226,659
Total						600,034
Independent Power Producers & Energy Traders 0.94%
AES Corp. (The)	8.00%	10/15/2017		325		335,156
Dynegy Holdings, Inc.	8.375%	5/1/2016		250		238,750
Mirant Americas Generation LLC	9.125%	5/1/2031		350		316,750
NRG Energy, Inc.	7.25%	2/1/2014		200		203,000
Total						1,093,656

See Notes to Financial Statements.

19

Schedule of Investments (continued)

December 31, 2009

Investments	Interest Rate		Maturity Date	Principal Amount (000)		Value
Information Technology Services 0.41%
SunGard Data Systems, Inc.	10.25%		8/15/2015	$	450	$	481,500
Insurance 0.18%
Liberty Mutual Group, Inc.†	10.75%		6/15/2058		200		214,000
Leisure Equipment & Products 0.53%
Expedia, Inc.†	8.50%		7/1/2016		175		190,094
Speedway Motorsports, Inc.	8.75%		6/1/2016		400		424,000
Total							614,094
Media 1.25%
Affinion Group, Inc.	11.50%		10/15/2015		475		499,937
Barrington Broadcasting Group LLC	10.50%		8/15/2014		275		194,563
CBS Corp.	8.875%		5/15/2019		250		299,576
Mediacom Broadband LLC	8.50%		10/15/2015		250		253,750
Mediacom Communications Corp.†	9.125%		8/15/2019		100		102,500
WMG Acquisition Corp.†	9.50%		6/15/2016		100		107,625
Total							1,457,951
Metals & Mining 0.76%
Aleris International, Inc.(g)	10.00%		12/15/2016		125		938
Freeport-McMoRan Copper & Gold, Inc.	8.375%		4/1/2017		425		466,013
Noranda Aluminum Acquisition Corp. PIK	5.274%	#	5/15/2015		321		250,469
Teck Resources Ltd. (Canada)(a)	9.75%		5/15/2014		150		173,812
Total							891,232
Multi-Line Retail 0.28%
Macy’s Retail Holdings, Inc.	8.875%		7/15/2015		300		332,250
Multi-Utilities 0.61%
Black Hills Corp.	9.00%		5/15/2014		350		399,507
NiSource Finance Corp.	10.75%		3/15/2016		250		308,409
Total							707,916
Oil, Gas & Consumable Fuels 2.25%
Cameron International Corp.	6.375%		7/15/2018		100		106,836
Chesapeake Energy Corp.	7.625%		7/15/2013		200		210,500
Continental Resources, Inc.†	8.25%		10/1/2019		500		527,500
El Paso Corp.	7.00%		6/15/2017		100		99,679

See Notes to Financial Statements.

20

Schedule of Investments (continued)

December 31, 2009

Investments	Interest Rate	Maturity Date	Principal Amount (000)		Value
Oil, Gas & Consumable Fuels (continued)
El Paso Corp.	7.25%	6/1/2018	$	250	$	248,250
Forest Oil Corp.	7.25%	6/15/2019		200		198,500
Quicksilver Resources, Inc.	8.25%	8/1/2015		300		309,000
Tennessee Gas Pipeline Co.	7.00%	10/15/2028		250		267,727
Williams Cos., Inc. (The)	8.125%	3/15/2012		600		659,078
Total						2,627,070
Personal Products 0.30%
Elizabeth Arden, Inc.	7.75%	1/15/2014		350		346,500
Real Estate Investment Trusts 0.15%
Host Hotels & Resorts LP	6.375%	3/15/2015		175		172,375
Specialty Retail 0.52%
Brookstone Co., Inc.	12.00%	10/15/2012		250		167,500
Limited Brands, Inc.†	8.50%	6/15/2019		400		437,000
Total						604,500
Textiles, Apparel & Luxury Goods 0.24%
INVISTA†	9.25%	5/1/2012		70		71,400
Levi Strauss & Co.	9.75%	1/15/2015		200		211,000
Total						282,400
Thrifts & Mortgage Finance 0.00%
Washington Mutual Bank(g)	6.875%	6/15/2011		275		2,750
Wireless Telecommunication Services 0.77%
MetroPCS Wireless, Inc.	9.25%	11/1/2014		350		356,125
Sprint Capital Corp.	6.90%	5/1/2019		350		323,750
Wind Acquisition Finance SA (Italy)†(a)	11.75%	7/15/2017		100		109,750
Wind Acquisition Finance SA (Italy)†(a)	12.00%	12/1/2015		100		107,500
Total						897,125
Total High Yield Corporate Bonds (cost $26,491,108)						26,366,906
			Shares (000)
NON-CONVERTIBLE PREFERRED STOCK 0.01%
Agency/Government Related
Fannie Mae* (cost $213,465)				9		9,350

See Notes to Financial Statements.

21

Schedule of Investments (concluded)

December 31, 2009

Investments	Shares (000)		Value
WARRANT 0.01%
Media
Charter Communications, Inc. (11/30/2014 at $46.86)* (cost $4,456)		1	$	7,956
Total Long-Term Investments (cost $106,418,462)				111,245,433
	Principal Amount (000)
SHORT-TERM INVESTMENT 4.26%
Repurchase Agreement
Repurchase Agreement dated 12/31/2009, Zero Coupon due 1/4/2010 with Fixed Income Clearing Corp. collateralized by $4,820,000 of Federal Home Loan Mortgage Corp. 4.125% due 2/24/2011; value: $5,073,050; proceeds: $4,972,758 (cost $4,972,758)	$	4,973		4,972,758
Total Investments in Securities 99.53% (cost $111,391,220)				116,218,191
Cash and Assets in Excess of Liabilities 0.47%				545,817
Net Assets 100.00%			$	116,764,008

ADR American Depositary Receipt.

PIK Payment-in-kind.

Unit More than one class of securities traded together.

* Non-income producing security.

^# Variable rate security. The interest rate represents the rate at December 31, 2009.

^† Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and, unless registered under the Act or exempted from registration, may only be resold to qualified institutional investors. Unless otherwise noted, 144A securities are deemed to be liquid.

^(a) Foreign security traded in U.S. dollars.

^(b) Restricted security. The Fund acquired 3,410 shares in a private placement on June 11, 2009 for a cost of $63,938. The fair value price per share on December 31, 2009 is $35.50.

^(c) Restricted Security. The Fund acquired 798 shares in a private placement on November 30, 2009 for a cost of $16,459. The fair value price per share on December 31, 2009 is $35.50.

^(d) Amount is less than 1,000 shares.

^(e) Floating Rate Loans in which the Fund invests generally pay interest at rates which are periodically re-determined at a margin above the London Inter-Bank Offered Rate (“LIBOR”) or the prime rate offered by major U.S. banks. The rate shown is the rate(s) in effect at December 31, 2009.

^(f) Investment in non-U.S. dollar denominated securities.

^(g) Defaulted Security.

See Notes to Financial Statements.

22

Statement of Assets and Liabilities

December 31, 2009

ASSETS:
Investments in securities, at value (cost $111,391,220)	$	116,218,191
Cash		14,057
Receivables:
Interest and dividends		735,969
From advisor (See Note 3)		16,238
Capital shares sold		12,851
Prepaid expenses and other assets		1,150
Total assets		116,998,456
LIABILITIES:
Payables:
Management fee		70,675
Capital shares reacquired		20,438
Directors’ fees		5,618
Fund administration		3,769
Accrued expenses and other liabilities		133,948
Total liabilities		234,448
NET ASSETS	$	116,764,008
COMPOSITION OF NET ASSETS:
Paid-in capital	$	134,493,592
Distributions in excess of net investment income		(118,786	)
Accumulated net realized loss on investments and foreign currency related transactions		(22,438,867	)
Net unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies		4,828,069
Net Assets	$	116,764,008
Outstanding shares (50 million shares of common stock authorized, $.001 par value)		9,743,267
Net asset value, offering and redemption price per share (Net assets divided by outstanding shares)		$11.98

See Notes to Financial Statements.

23

Statement of Operations

For the Year Ended December 31, 2009

Investment income:
Dividends (net of foreign withholding taxes of $14,281)	$	1,954,971
Interest		2,728,412
Total investment income		4,683,383
Expenses:
Management fee		752,168
Shareholder servicing		367,143
Reports to shareholders		60,608
Professional		41,332
Fund administration		40,116
Custody		9,178
Directors’ fees		3,239
Other		3,297
Gross expenses		1,277,081
Expense reductions (See Note 7)		(221	)
Management fees waived and expenses reimbursed (See Note 3)		(123,536	)
Net expenses		1,153,324
Net investment income		3,530,059
Net realized and unrealized gain (loss):
Net realized loss on investments and foreign currency related transactions		(8,106,514	)
Net change in unrealized appreciation/depreciation on investments and translation of assets and liabilities denominated in foreign currencies		26,519,676
Net realized and unrealized gain		18,413,162
Net Increase in Net Assets Resulting From Operations	$	21,943,221

See Notes to Financial Statements.

24

Statements of Changes in Net Assets

INCREASE (DECREASE) IN NET ASSETS	For the Year Ended December 31, 2009			For the Year Ended December 31, 2008
Operations:
Net investment income	$	3,530,059		$	4,263,735
Net realized loss on investments and foreign currency related transactions		(8,106,514	)		(13,902,651	)
Net change in unrealized appreciation/depreciation on investments and translation of assets and liabilities denominated in foreign currencies		26,519,676			(24,031,453	)
Net increase (decrease) in net assets resulting from operations		21,943,221			(33,670,369	)
Distributions to shareholders from:
Net investment income		(3,660,866	)		(4,493,981	)
Net realized gain on investments		–			(2,697,232	)
Total distributions to shareholders		(3,660,866	)		(7,191,213	)
Capital share transactions (See Note 10):
Proceeds from sales of shares		18,566,088			16,172,374
Reinvestment of distributions		3,660,864			7,191,210
Cost of shares reacquired		(16,323,673	)		(18,598,569	)
Net increase in net assets resulting from capital share transactions		5,903,279			4,765,015
Net increase (decrease) in net assets		24,185,634			(36,096,567	)
NET ASSETS:
Beginning of year	$	92,578,374		$	128,674,941
End of year	$	116,764,008		$	92,578,374
Distributions in excess of net investment income	$	(118,786	)	$	(67,711	)

See Notes to Financial Statements.

25

Financial Highlights

	Year Ended 12/31
	2009		2008		2007		2006		2005
Per Share Operating Performance
Net asset value, beginning of year	$10.02		$14.79		$15.28		$13.93		$13.83
Investment operations:
Net investment income(a)	.38		.49		.47		.39		.39
Net realized and unrealized gain (loss)	1.97		(4.41	)	.02		1.64		.14
Total from investment operations	2.35		(3.92	)	.49		2.03		.53
Distributions to shareholders from:
Net investment income	(.39	)	(.53	)	(.48	)	(.37	)	(.30	)
Net realized gain	—		(.32	)	(.50	)	(.31	)	(.13	)
Total distributions	(.39	)	(.85	)	(.98	)	(.68	)	(.43	)
Net asset value, end of year	$11.98		$10.02		$14.79		$15.28		$13.93
Total Return(b)	23.41	%	(26.19	)%	3.16	%	14.55	%	3.78	%
Ratios to Average Net Assets:
Expenses, excluding expense reductions and including management fees waived and expenses reimbursed	1.15	%	1.14	%	1.15	%	1.15	%	1.15	%
Expenses, including expense reductions, management fees waived and expenses reimbursed	1.15	%	1.14	%	1.14	%	1.15	%	1.15	%
Expenses, excluding expense reductions, management fees waived and expenses reimbursed	1.27	%	1.29	%	1.20	%	1.27	%	1.33	%
Net investment income	3.52	%	3.83	%	2.92	%	2.67	%	2.77	%
Supplemental Data:
Net assets, end of year (000)	$116,764		$92,578		$128,675		$97,741		$62,971
Portfolio turnover rate	54.60	%	69.31	%	28.41	%	35.51	%	31.65	%

^(a) Calculated using average shares outstanding during the year.

^(b) Total return assumes the reinvestment of all distributions.

See Notes to Financial Statements.

26

Notes to Financial Statements

1.    ORGANIZATION

Lord Abbett Series Fund, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company, incorporated under Maryland law in 1989. The Company consists of eight separate portfolios (the “Funds”). This report covers America’s Value Portfolio (the “Fund”). The Fund is diversified as defined in the Act.

The investment objective of the Fund is to seek current income and capital appreciation. The Fund offers Variable Contract class shares (“Class VC Shares”) which are currently issued and redeemed only in connection with investments in, and payments under, variable annuity contracts and variable life insurance policies issued by life insurance and insurance-related companies.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

2.    SIGNIFICANT ACCOUNTING POLICIES

(a) Investment Valuation–Securities actively traded on any recognized U.S. or non-U.S. exchange or on The NASDAQ Stock Market LLC are valued at the last sale price or official closing price on the exchange or system on which they are principally traded. Events occurring after the close of trading on non-U.S. exchanges may result in adjustments to the valuation of foreign securities to more accurately reflect their fair value as of the close of regular trading on the New York Stock Exchange LLC. The Fund may rely on an independent fair valuation service in adjusting the valuations of foreign securities. Unlisted equity securities are valued at the last quoted sale price or, if no sale price is available, at the mean between the most recently quoted bid and asked prices. Fixed income securities are valued at the mean between the bid and asked prices on the basis of prices supplied by independent pricing services, which reflect broker/dealer supplied valuations and the independent pricing services’ own electronic data processing techniques. Floating rate loans are valued at the average of bid and asked quotations from dealers in loans on the basis of prices supplied by independent pricing services. Securities for which market quotations are not readily available are valued at fair value as determined by management and approved in good faith by the Board of Directors. Short-term securities with 60 days or less remaining to maturity are valued using the amortized cost method, which approximates current market value.

(b) Security Transactions–Security transactions are recorded as of the date that the securities are purchased or sold (trade date). Realized gains and losses on sales of portfolio securities are calculated using the identified-cost method.

(c) Investment Income–Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis as earned. Discounts are accreted and premiums are amortized using the effective interest method. Withholding taxes on foreign dividends have been provided for in accordance with the applicable country’s tax rules and rates.

(d) Income Taxes–It is the policy of the Fund to meet the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all taxable income and capital gains to its shareholders. Therefore, no income tax provision is required.

27

Notes to Financial Statements (continued)

The Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund’s U.S. federal tax returns remains open for the fiscal years ended December 31, 2006 through December 31, 2009. The statutes of limitations on the Company’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

(e) Expenses–Expenses incurred by the Company that do not specifically relate to an individual fund are generally allocated to the Funds within the Company on a pro rata basis by relative net assets.

(f) Foreign Transactions–The books and records of the Fund are maintained in U.S. dollars and transactions denominated in foreign currencies are recorded in the Fund’s records at the rate prevailing when earned or recorded. Asset and liability accounts that are denominated in foreign currencies are adjusted daily to reflect current exchange rates and any unrealized gain (loss) is included in Net change in unrealized appreciation/depreciation on investments and translation of assets and liabilities denominated in foreign currencies on the Fund’s Statement of Operations. The resultant exchange gains and losses upon settlement of such transactions are included in Net realized loss on investments and foreign currency related transactions on the Fund’s Statement of Operations. The Fund does not isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the changes in market prices of the securities.

(g) Repurchase Agreements–The Fund may enter into repurchase agreements with respect to securities. A repurchase agreement is a transaction in which a Fund acquires a security and simultaneously commits to resell that security to the seller (a bank or securities dealer) at an agreed-upon price on an agreed-upon date. The Fund requires at all times that the repurchase agreement be collateralized by cash, or by securities of the U.S. Government, its agencies, its instrumentalities, or U.S. Government sponsored enterprises having a value equal to, or in excess of, the value of the repurchase agreement (including accrued interest). If the seller of the agreement defaults on its obligation to repurchase the underlying securities at a time when the value of these securities has declined, a Fund may incur a loss upon disposition of the securities.

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

28

Notes to Financial Statements (continued)

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

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

Unfunded commitments represent the remaining obligation of the Fund to the Borrower. At any point in time, up to the maturity date of the issue, the Borrower may demand the unfunded portion. As of December 31, 2009, the Fund had no unfunded loan commitments.

(j) Fair Value Measurements–In accordance with Financial Accounting Standards Board (“FASB”), Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures (formerly SFAS 157), fair value is defined as the price that the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. ASC 820 established a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk – for example, the risk inherent in a particular valuation technique used to measure fair value (such as a pricing model) and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below:

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

29

Notes to Financial Statements (continued)

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.); and

• Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of December 31, 2009 in valuing the Fund’s investments carried at value:

Investment Type*	Level 1		Level 2		Level 3		Total
Common Stocks	$	63,470,945	$	121,055	$	–	$	63,592,000
Convertible Bonds		–		10,157,698		–		10,157,698
Convertible Preferred Stocks		4,015,006		2,537,500		–		6,552,506
Floating Rate Loans		–		451,818		–		451,818
Foreign Common Stocks		–		4,107,199		–		4,107,199
High Yield Corporate Bonds		–		26,366,906		–		26,366,906
Non-Convertible Preferred Stock		9,350		–		–		9,350
Warrant		–		7,956		–		7,956
Repurchase Agreement		–		4,972,758		–		4,972,758
Total	$	67,495,301	$	48,722,890	$	–	$	116,218,191

* See Schedule of Investments for values in each industry.

3.    MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Management Fee

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

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

First $1 billion	.75%
Next $1 billion	.70%
Over $2 billion	.65%

For the fiscal year ended December 31, 2009, the effective management fee, before waivers and expenses reimbursed, was at an annualized rate of .75% of the Fund’s average daily net assets.

Lord Abbett provides certain administrative services to the Fund pursuant to an Administrative Services Agreement at an annual rate of .04% of the Fund’s average daily net assets.

For the period January 1, 2009 through April 30, 2009, Lord Abbett contractually agreed to reimburse the Fund to the extent necessary so that total annual operating expenses (excluding management fee) did not exceed an annual rate of .40% of average daily net assets.

Effective May 1, 2009, Lord Abbett voluntarily agreed to waive a portion of its management fee and, if necessary, reimburse the Fund to the extent necessary so that total annual operating expenses do not exceed an annual rate of 1.15% of average daily net assets.

30

Notes to Financial Statements (continued)

Lord Abbett may stop or change the level of the voluntary waiver or reimbursement at any time.

The Company, on behalf of the Fund, has entered into services arrangements with certain insurance companies. 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 the insurance company’s separate account to service and maintain the Variable Contract owners’ accounts. The Fund may also compensate certain insurance companies, third-party administrators and other entities for providing recordkeeping, sub-transfer agency and other administrative services to the Fund. For the fiscal year ended December 31, 2009, the Fund incurred expenses of $351,012 for such services arrangements, which have been included in Shareholder Servicing Expense on the Statement of Operations.

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

The tax character of distributions paid during the fiscal years ended December 31, 2009 and 2008 was as follows:

	Year Ended 12/31/09		Year Ended 12/31/08
Distributions paid from:
Ordinary income	$	3,660,866	$	4,636,136
Net long-term capital gains		–		2,555,077
Total distributions paid	$	3,660,866	$	7,191,213

As of December 31, 2009, the components of accumulated losses on a tax-basis were as follows:

Undistributed ordinary income – net	$	28,865
Total undistributed earnings	$	28,865
Capital loss carryforwards*		(22,006,126	)
Temporary differences		(348,008	)
Unrealized gains – net		4,595,685
Total accumulated losses – net	$	(17,729,584	)

* As of December 31, 2009, the capital loss carryforwards, along with the related expiration dates, were as follows:

2016	2017		Total
$11,260,400	$	10,745,726	$	22,006,126

31

Notes to Financial Statements (continued)

Certain losses incurred after October 31 (“Post-October losses”) within the taxable year are deemed to arise on the first business day of the Fund’s next taxable year. The Fund incurred and will elect to defer net capital losses of $341,271 and net ordinary losses of $1,120 during fiscal 2009.

As of December 31, 2009, the aggregate unrealized security gains and losses based on cost for U.S. federal income tax purposes were as follows:

Tax cost	$	111,623,604
Gross unrealized gain		10,701,985
Gross unrealized loss		(6,107,398	)
Net unrealized security gain	$	4,594,587

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

Permanent items identified during the fiscal year ended December 31, 2009 have been reclassified among the components of net assets based on their tax basis treatment as follows:

Distributions in Excess of Net Investment Income	Accumulated Net Realized Loss
$79,732	$	(79,732	)

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

5.    PORTFOLIO SECURITIES TRANSACTIONS

Purchases and sales of investment securities (excluding short-term investments) for the fiscal year ended December 31, 2009 were as follows:

U.S. Government Purchases*	Non-U.S. Government Purchases		U.S. Government Sales*		Non-U.S. Government Sales
$1,023,477	$	55,329,655	$	7,507,543	$	45,704,023

*Includes U.S. Government sponsored enterprises securities.

6.    DIRECTORS’ REMUNERATION

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

32

Notes to Financial Statements (continued)

7.    EXPENSE REDUCTIONS

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

8.    CUSTODIAN AND ACCOUNTING AGENT

State Street Bank and Trust Company (“SSB”) is the Company’s custodian and accounting agent. SSB performs custodial, accounting and recordkeeping functions relating to portfolio transactions and calculating the Fund’s NAV.

9.    INVESTMENT RISKS

The Fund is subject to the general risks and considerations associated with investing in equity and fixed income securities.

The value of the Fund’s equity security holdings and, consequently, the value of an investment in the Fund will fluctuate in response to movements in the equity securities market in general and to the changing prospects of individual companies involved. With its emphasis on value stocks, the Fund may perform differently than the market as a whole and other types of stocks, such as growth stocks. The market may fail to recognize the intrinsic value of particular value stocks for a long time. The Fund may invest a significant portion of its assets in mid-sized companies that may be less able to weather economic shifts or other adverse developments than larger, more established companies. Because the Fund is not limited to investing in equity securities, the Fund may have smaller gains in a rising stock market than a fund investing solely in equity securities. In addition, if the Fund’s assessment of a company’s value or prospects for market appreciation or market conditions is wrong, the Fund could suffer losses or produce poor performance relative to other funds, even in a rising market.

The value of the Fund’s fixed income holdings, and consequently, the value of an investment in the Fund will change as interest rates fluctuate and in response to market movements. When interest rates rise, the prices of these holdings are likely to decline. There is also the risk that an issuer of a fixed income security will fail to make timely payments of principal or interest to the Fund, a risk that is greater with high yield debt securities (sometimes called “lower-rated debt securities” or “junk bonds”) in which the Fund may invest. Some issuers, particularly of high yield bonds, may default as to principal and/or interest payments after the Fund purchases their securities.

A default, or concerns in the market about an increase in risk of default, may result in losses to the Fund. High yield bonds are subject to greater price fluctuations, as well as additional risks.

The mortgage-related securities in which the Fund may invest may be particularly sensitive to changes in prevailing interest rates. When interest rates are declining, the value of these securities with prepayment features may not increase as much as other fixed income securities. The prepayment rate also will affect the price and volatility of a mortgage-related security.

The Fund may invest up to 20% of its net assets in foreign securities, which may present increased market, liquidity, currency, political information and other risks.

These factors can affect the Fund’s performance.

33

Notes to Financial Statements (concluded)

10.    SUMMARY OF CAPITAL TRANSACTIONS

Transactions in shares of capital stock were as follows:

	Year Ended December 31, 2009		Year Ended December 31, 2008
Shares sold	1,751,146		1,265,102
Reinvestment of distributions	304,818		745,203
Shares reacquired	(1,548,265	)	(1,474,559	)
Increase	507,699		535,746

11.    SUBSEQUENT EVENTS

In accordance with the provisions set forth in ASC Topic 855 (formerly SFAS 165), Subsequent Events, adopted by the Fund as of December 31, 2009, management has evaluated subsequent events existing in the Fund’s financial statements through February 16, 2010. Management has determined that there were no material subsequent events that would require recognition or additional disclosure in the Fund’s financial statements through this date.

12.    RECENT ACCOUNTING PRONOUNCEMENTS

In January 2010, the FASB issued Accounting Standards Update 2010-06 “Improving Disclosures about Fair Value Measurements” (“ASU 2010-06”). ASU 2010-06 provides clarifications to existing disclosures required by ASC 820 as well as amends ASC 820 to require certain new disclosures. ASU 2010-06 is substantially effective for interim and annual reporting periods beginning after December 15, 2009. Management is currently evaluating the impact the adoption of ASU 2010-06 will have on the Fund’s financial statement disclosures.

34

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of Lord Abbett Series Fund, Inc.:

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the America’s Value Portfolio, one of the portfolios constituting the Lord Abbett Series Fund, Inc. (the “Company”), as of December 31, 2009, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2009, by correspondence with the custodian, brokers and agent banks. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the America’s Value Portfolio of the Lord Abbett Series Fund, Inc. as of December 31, 2009, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

DELOITTE & TOUCHE LLP

New York, New York

February 16, 2010

35

Basic Information About Management

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

Lord, Abbett & Co. LLC (“Lord Abbett”), a Delaware limited liability company, is the Company’s investment adviser.

Interested Directors

The following Directors are partners of Lord Abbett and are “interested persons” of the Company as defined in the Act. Mr. Dow and Ms. Foster are officers, directors, or trustees of each of the 14 Lord Abbett-sponsored funds, which consist of 53 portfolios or series.

Name, Address and Year of Birth	Current Position and Length of Service with Company	Principal Occupation During Past Five Years	Other Directorships
Robert S. Dow Lord, Abbett & Co. LLC 90 Hudson Street Jersey City, NJ 07302 (1945)	Director since 1995, Chairman since 1996	Senior Partner (since 2007), Chief Executive Officer (since 1996) and was formerly Managing Partner (1996 - 2007), joined Lord Abbett in 1972.	N/A
Daria L. Foster Lord, Abbett & Co. LLC 90 Hudson Street Jersey City, NJ 07302 (1954)	Director since 2006	Managing Partner (since 2007) and was formerly Director of Marketing and Client Service, joined Lord Abbett in 1990.	N/A

Independent Directors

The following independent or outside Directors (“Independent Directors”) are also directors or trustees of each of the 14 Lord Abbett-sponsored funds, which consist of 53 portfolios or series.

Name, Address and Year of Birth	Current Position and Length of Service with Company	Principal Occupation During Past Five Years	Other Directorships
E. Thayer Bigelow Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1941)	Director since 1994	Managing General Partner, Bigelow Media, LLC (since 2000); Senior Adviser, Time Warner Inc. (1998 - 2000).	Currently serves as director of Crane Co. (since 1984), Huttig Building Products Inc. (since 1998) and R.H. Donnelley Inc. (since 2009).
William H.T. Bush Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1938)	Director since 1998	Co-founder and Chairman of the Board of the financial advisory firm of Bush-O’Donnell & Company (since 1986).	Currently serves as director of WellPoint, Inc., a health benefits company (since 2002).

36

Basic Information About Management (continued)

Name, Address and Year of Birth	Current Position and Length of Service with Company	Principal Occupation During Past Five Years	Other Directorships
Robert B. Calhoun, Jr. Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1942)	Director since 1998	Senior Advisor of Monitor Clipper Partners, a private equity investment fund (since 1997); President of Clipper Asset Management Corp. (1991 - 2009).	N/A
Julie A. Hill Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1946)	Director since 2004	Owner and CEO of The Hill Company, a business consulting firm (since 1998).	Currently serves as director of WellPoint, Inc., a health benefits company (since 1994) and Lend Lease Corporation Limited (since 2005).
Franklin W. Hobbs Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1947)	Director since 2001	Advisor of One Equity Partners, a private equity firm (since 2004).	Currently serves as a director and Chairman of the Board of GMAC Inc., a financial services firm (since 2009) and as a director of Molson Coors Brewing Company (since 2002).
Thomas J. Neff Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1937)	Director since 1989	Chairman of Spencer Stuart (U.S.), an executive search consulting firm (since 1996).	Currently serves as director of Ace, Ltd. (since 1997) and Hewitt Associates, Inc. (since 2004).
James L.L. Tullis Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1947)	Director since 2006	CEO of Tullis-Dickerson and Co. Inc., a venture capital management firm (since 1990).	Currently serves as director of Crane Co. (since 1998).

Officers

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

Name and Year of Birth	Current Position with Company	Length of Service of Current Position	Principal Occupation During Past Five Years
Robert S. Dow (1945)	Chief Executive Officer and Chairman	Elected in 1996	Senior Partner (since 2007), Chief Executive Officer (since 1996) and was formerly Managing Partner (1996 - 2007), joined Lord Abbett in 1972.

37

Basic Information About Management (continued)

Name and Year of Birth	Current Position with Company	Length of Service of Current Position	Principal Occupation During Past Five Years
Daria L. Foster (1954)	President	Elected in 2006	Managing Partner (since 2007) and was formerly Director of Marketing and Client Service, joined Lord Abbett in 1990.
Robert P. Fetch (1953)	Executive Vice President	Elected in 2003	Partner and Director, joined Lord Abbett in 1995.
Daniel H. Frascarelli (1954)	Executive Vice President	Elected in 2003	Partner and Director, joined Lord Abbett in 1990.
Robert I. Gerber (1954)	Executive Vice President	Elected in 2003	Partner and Chief Investment Officer (since 2007), joined Lord Abbett in 1997 as Director of Taxable Fixed Income Management.
Todd D. Jacobson (1966)	Executive Vice President	Elected in 1999	Portfolio Manager, joined Lord Abbett in 2003.
Eli M. Salzmann (1964)	Executive Vice President	Elected in 2006	Partner and Director, joined Lord Abbett in 1997.
Christopher J. Towle (1957)	Executive Vice President	Elected in 1999	Partner and Director, joined Lord Abbett in 1987.
Paul J. Volovich (1973)	Executive Vice President	Elected in 2005	Partner and Director, joined Lord Abbett in 1997.
James W. Bernaiche (1956)	Chief Compliance Officer	Elected in 2004	Partner and Chief Compliance Officer, joined Lord Abbett in 2001.
Joan A. Binstock (1954)	Chief Financial Officer and Vice President	Elected in 1999	Partner and Chief Operations Officer, joined Lord Abbett in 1999.
Jeff Diamond (1960)	Vice President	Elected in 2008	Portfolio Manager, joined Lord Abbett in 2007 and was formerly a Managing Director at Axia Capital Management LLC (2004 - 2006).
John K. Forst (1960)	Vice President and Assistant Secretary	Elected in 2005	Deputy General Counsel, joined Lord Abbett in 2004.
Michael S. Goldstein (1968)	Vice President	Elected in 1999	Partner and Portfolio Manager, joined Lord Abbett in 1997.
Lawrence H. Kaplan (1957)	Vice President and Secretary	Elected in 1997	Partner and General Counsel, joined Lord Abbett in 1997.
Deepak Khanna (1963)	Vice President	Elected in 2008	Portfolio Manager, rejoined Lord Abbett in 2007 from Jennison Associates LLC (2005 - 2007). Mr. Khanna’s former experience at Lord Abbett included Senior Research Analyst – other investment strategies (2000 - 2005).

38

Basic Information About Management (concluded)

Name and Year of Birth	Current Position with Company	Length of Service of Current Position	Principal Occupation During Past Five Years
David J. Linsen (1974)	Vice President	Elected in 2008	Director and Portfolio Manager, joined Lord Abbett in 2001.
Elizabeth O. MacLean (1966)	Vice President	Elected in 2008	Partner and Portfolio Manager, joined Lord Abbett in 2006 and was formerly a Managing Director/Portfolio Manager at Nomura Corporate Research and Asset Management, Inc. (2000 - 2006).
A. Edward Oberhaus, III (1959)	Vice President	Elected in 1998	Partner and Director, joined Lord Abbett in 1983.
Todor Petrov (1974)	Vice President	Elected in 2008	Portfolio Manager, joined Lord Abbett in 2003.
Thomas R. Phillips (1960)	Vice President and Assistant Secretary	Elected in 2008	Deputy General Counsel, joined Lord Abbett in 2006 and was formerly an attorney at Morgan, Lewis & Bockius LLP.
Randy M. Reynolds (1972)	Vice President	Elected in 2008	Portfolio Manager, joined Lord Abbett in 1999.
Lawrence D. Sachs (1963)	Vice President	Elected in 2010	Partner and Portfolio Manager, joined Lord Abbett in 2001.
Lawrence B. Stoller (1963)	Vice President and Assistant Secretary	Elected in 2007	Senior Deputy General Counsel, joined Lord Abbett in 2007 and was formerly an Executive Vice President and General Counsel at Cohen & Steers Capital Management, Inc. (1999 - 2007).
Bernard J. Grzelak (1971)	Treasurer	Elected in 2003	Partner and Director of Fund Administration, joined Lord Abbett in 2003.

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

39

Approval of Advisory Contract

At meetings held on December 16 and 17, 2009, the Board, including all of the Directors who are not interested persons of the Fund or Lord, Abbett & Co. LLC. (“Lord Abbett”), considered whether to approve the continuation of the existing management agreement between the Fund and Lord Abbett. In addition to the materials the Board had reviewed throughout the course of the year, the Board received materials relating to the management agreement before the meeting and had the opportunity to ask questions and request further information in connection with its consideration. The Board also took into account its familiarity with Lord Abbett gained through its previous meetings and discussions, and the examination of the portfolio management team conducted by members of the Contract Committee during the year.

The materials received by the Board included, but were not limited to, (1) information provided by Lipper Inc. regarding the investment performance of the Fund compared to the investment performance of one or more groups of funds with substantially similar investment objectives (the “performance universe”) and to the investment performance of an appropriate securities index, (2) information on the expense ratios, effective management fee rates, and other expense components, for the Fund and one or more groups of funds with similar objectives and of similar size (the “peer group”), (3) sales and redemption information for the Fund, (4) information regarding Lord Abbett’s financial condition, (5) an analysis of the relative profitability of the management agreement to Lord Abbett, (6) information regarding the distribution arrangements of the Fund, and (7) information regarding the personnel and other resources devoted by Lord Abbett to managing the Fund.

Investment Management Services Generally. The Board considered the investment management services provided by Lord Abbett to the Fund, including investment research, portfolio management, and trading, and Lord Abbett’s commitment to compliance with all relevant legal requirements. The Board also observed that Lord Abbett was solely engaged in the investment management business and accordingly did not experience the conflicts of interest resulting from being engaged in other lines of business. The Board noted that in recent years Lord Abbett had not used brokerage commissions to purchase third-party research, but had changed this practice in 2009, as it had previously discussed with the Board. The Board considered the investment advisory services provided by Lord Abbett to other clients, the fees charged for the services, and the differences in the nature of the services provided to the Fund and other Lord Abbett Funds, on the one hand, and the services provided to other clients, on the other.

Investment Performance and Compliance. The Board reviewed the Fund’s investment performance in relation to that of the performance universe, both in terms of total return and in terms of other statistical measures. The Board noted the Fund tended to invest to a greater degree in below investment grade fixed income securities and in mid-cap value equity securities than most of its competitors. The Board observed that the investment performance of the Fund was in the fourth quintile of its performance universe for the nine-month period, in the first quintile for the one-year period, and in the third quintile for the three-year and five-year periods. The Board also observed that the investment performance was lower than of the Lipper VUF Mixed-Asset Target Allocation Growth Index for the nine-month period and higher than that of the Index for the one-year, three-year, and five-year periods.

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

40

turnover of Lord Abbett’s investment management staff, Lord Abbett’s investment methodology and philosophy, and Lord Abbett’s approach to recruiting, training, and retaining investment management personnel. The Board determined that Lord Abbett had the expertise and resources to manage the Fund effectively.

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

Expenses. The Board considered the expense levels of the Fund and the expense levels of the peer group. The Board considered the fiscal periods on which the peer group information was based, and noted that such periods ended before September 30, 2009. The Board noted that the expense levels of the peer group likely would have been different for periods ending September 30, 2009, due to the lower asset levels prevailing in the mutual fund industry during much of 2009. The Board also observed that the Fund’s transfer agency expenses were likely to decrease in 2010, as a result of renegotiation of the transfer agency agreement. It also considered the amount and nature of the fees paid by shareholders. The Board observed that it and Lord Abbett had agreed to an expense reimbursement agreement through April 30, 2009 that limited all expenses other than management fees to 0.40%, but that Lord Abbett had not entered into a new agreement, and instead had made voluntary reimbursements that had the effect of keeping the total expense ratio at 1.15%, which reimbursements it could end at any time. The Board observed that for the nine months ended September 30, 2009 (annualized) the contractual management and administrative services fee rates were approximately twelve basis points above the median of the peer group and the actual management and administrative services fee rates were approximately sixteen basis points above the median of the peer group. The Board observed that for the nine months ended September 30, 2009 (annualized) the total expense ratio of the Fund was approximately ten basis points above the median of the peer group. The Board also considered that Lord Abbett voluntarily intended to waive its management fee and/or administrative service fee and/or voluntarily reimburse expenses to maintain the current expense ratio, and considered what the Fund’s expense ratio likely would be if Lord Abbett did not voluntarily waive its fees or reimburse any expenses and how that expense ratio would compare to that of the peer group. The Board observed that the Fund had a different strategy from most of the Funds in its peer group, because it invested to a greater degree in mid-cap equity securities, rather than large-cap equity securities, and in below investment grade debt, rather than investment grade debt, and that those differences limited the validity of the comparison to the peer group.

Profitability. The Board considered the level of Lord Abbett’s profits in managing the Fund, including a review of Lord Abbett’s methodology for allocating its costs to its management of the Fund. The Board concluded that the allocation methodology had a reasonable basis and was appropriate. It considered any profits realized by Lord Abbett in connection with the operation of the Fund and whether the amount of profit was fair for the management of the Fund. The Board also considered the profits realized from other businesses of Lord Abbett, which may benefit from or be related to the Fund’s business. The Board considered Lord Abbett’s profit margins in comparison with available industry data, both accounting for and ignoring marketing and distribution expenses, and how those profit margins could affect Lord Abbett’s ability to recruit and retain investment personnel. The Board recognized that Lord Abbett’s profitability was a factor in enabling it to attract and retain qualified investment management personnel to provide services to the Fund. The Board noted that Lord Abbett’s overall profitability had decreased in its 2009 fiscal

41

year, largely due to declines in market prices and shareholder redemptions. The Board concluded that Lord Abbett’s profitability overall and as to the Fund was not excessive.

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

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

Alternative Arrangements. The Board considered whether, instead of approving continuation of the management agreement, it might be in the best interests of the Fund to implement one or more alternative arrangements, such as continuing to employ Lord Abbett, but on different terms.

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

42

Householding

The 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 need additional copies or do not want your mailings to be “householded,” please call Lord Abbett at 888-522-2388 or send a written request with your name, the name of your fund or funds and your account number or numbers to Lord Abbett Family of Funds, P.O. Box 219336, Kansas City, MO 64121.

Proxy Voting Policies, Procedures and Records

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

Shareholder Reports and Quarterly Portfolio Disclosure

The Fund is required to file its complete schedule of portfolio holdings with the SEC for its first and third fiscal quarters on Form N-Q. Copies of the filings are available without charge, upon request on the SEC’s Website at www.sec.gov and may be available by calling Lord Abbett at 888-522-2388. You can also obtain copies of Form N-Q by (i) visiting the SEC’s Public Reference Room in Washington, DC (information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330); (ii) sending your request and duplicating fee to the SEC’s Public Reference Section, Washington, DC 20549-1520; or (iii) sending your request electronically, after paying a duplicating fee, to publicinfo@sec.gov.

Tax Information

For corporate shareholders, 43.40% of the ordinary income distributions paid by the Fund during the fiscal year ended December 31, 2009 qualified for the dividends received deduction.

43

This report, when not used for the general information of shareholders of the Fund, is to be distributed only if preceded or accompanied by a current fund prospectus.

Lord Abbett mutual fund shares are distributed by LORD ABBETT DISTRIBUTOR LLC.

Lord Abbett Series Fund, Inc.

America’s Value Portfolio

LASFAMV-2-1209

(02/10)

2009

LORD ABBETT

ANNUAL

REPORT    

Lord Abbett

Series Fund—

Bond Debenture Portfolio

For the fiscal year ended December 31, 2009

Lord Abbett Series Fund — Bond Debenture Portfolio

Annual Report

For the fiscal year ended December 31, 2009

From left to right: Robert S. Dow, Director and Chairman of the Lord Abbett Funds; E. Thayer Bigelow, Independent Lead Director of the Lord Abbett Funds; and Daria L. Foster, Director and President of the Lord Abbett Funds.

Dear Shareholders: We are pleased to provide you with this overview of the Lord Abbett Series Fund – Bond Debenture Portfolio’s performance for the fiscal year ended December 31, 2009. On this page and the following pages, we discuss the major factors that influenced performance. For detailed and more timely information about the Fund, please visit www.lordabbett.com, where you also can access the quarterly commentaries by the Fund’s portfolio managers. We encourage you to call Lord Abbett at 888-522-2388 and speak to one of our professionals if you would like more information.

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

Best regards,

Robert S. Dow

Chairman

Q: What were the overall market conditions during the fiscal year ended December 31, 2009?

A: During the last twelve months policymakers continued to respond aggressively to the economic and financial crisis and the U.S. economy has gradually rebounded from the recession that began in December 2007. Global coordinated rate cuts, capital infusions into banks, development of the Troubled Asset Relief Program (TARP), the establishment of a commercial paper funding facility, the FDIC-backed Temporary Liquidity Guarantee Program (TLGP), the Term Asset-Backed Securities Loan Facility (TALF), and Public-Private Investment Program (PPIP) were among a number of emergency programs put in place to ease the crisis. As the credit crisis eased, investors’ tolerance for risk began to return. In many segments of the bond market, prices rose, yields fell, and spreads narrowed.

The fed funds rate was lowered in mid-December 2008, from 1.00% to a range of 0.00–0.25%. Economic sluggishness,

1

combined with quiescent inflation, prompted the Fed to since keep its target for the fed funds rate at 0.00–0.25%.

In the fixed income market, the assumption of credit risk was rewarded in the 12-month period. In general, lower credit quality securities outperformed those with higher credit quality ratings. The investment grade corporate bond market (as measured by the Barclays Capital U.S. Aggregate Bond Index¹) returned 5.93% while high-yield bonds (as measured by the BofA Merrill Lynch High Yield Master II Constrained Index²) rose 58.10%. Specifically, the BofA Merrill Lynch U.S. High Yield CCC-Rated Index³ led major bond indexes with a total return of 96.79%, followed by the BofA Merrill Lynch U.S. High Yield B-Rated Index³ up 47.64%, and the BofA Merrill Lynch U.S. High Yield BB-Rated Index³ up 45.21%. This trend was similar within convertible securities, with lower-rated credits outperforming higher-rated by a wide margin.

Q: How did the Bond Debenture Portfolio perform during the fiscal year ended December 31, 2009?

A: The Fund returned 34.31%, reflecting performance at the net asset value (NAV) of Class VC shares, with all distributions reinvested, compared to its benchmark, the Barclays Capital U.S. Aggregate Bond Index, which returned 5.93% over the same period.

Q: What were the most significant factors affecting performance?

A: The Bond Debenture Portfolio is a multi-sector bond fund with portfolio holdings in the high-yield bond, convertible, investment-grade bond, equity, and mortgage/Treasury sectors.

The Fund’s performance was helped by increased exposure to credit sensitive assets – high-yield, high-grade corporates, and convertible securities – and decreased positions in more rate sensitive holdings such as Treasuries and agency mortgage-backed securities (MBS). The bond market’s rally during the year was led by lower-rated credits, thus the portfolio benefited from increased positions in lower quality credits. At the industry level, among the industries contributing the most to performance were the health services, gas distribution, and chemical industries.

All industries had positive returns, however the returns within printing and publishing and theaters and entertainment were among the lowest. Although the printing and publishing sector has recovered some losses experienced during the recession, it continues to be challenged by the decline in print advertising sales due to the weak economic environment. The portfolio’s holdings in agency, agency MBS, and Treasuries were among those contributing the least to performance. Being higher quality, more defensive holdings, these securities did not participate in the credit rally.

2

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

A prospectus contains important information about a fund, including its investment objectives, risks, charges, and ongoing expenses, which an investor should carefully consider before investing. To obtain a prospectus on any Lord Abbett mutual fund, please contact your investment professional or Lord Abbett Distributor LLC at 888-522-2388 or visit www.lordabbett.com. Read the prospectus carefully before investing.

¹  The Barclays Capital U.S. Aggregate Bond Index represents securities that are U.S. domestic, taxable, nonconvertible, and dollar denominated. The index covers the investment-grade, fixed-rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities.

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

³  The BofA Merrill Lynch U.S. High Yield Index tracks the performance of U.S. dollar-denominated below investment-grade corporate debt publicly issued in the U.S. domestic market. The indexes for CCC, B, BB, and speculative are part of the BofA Merrill Lynch U.S. High Yield Index, with the only difference being the addition of a ratings filter.

Unless otherwise indicated, indexes are unmanaged and reflect total returns with all distributions reinvested, but do not reflect the deduction of fees, expenses, or taxes, and are not available for direct investment.

Important Performance and Other Information

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 www.lordabbett.com.

Note: During the period covered in this report, waivers and expense reimbursements were in place. Without such waivers and expense reimbursements, the Fund’s returns would have been lower.

The views of the Fund’s management and the portfolio holdings described in this report are as of December 31, 2009; these views and portfolio holdings may have changed subsequent to this date, and they do not guarantee the future performance of the markets or the Fund. Information provided in this report should not be considered a recommendation to purchase or sell securities.

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

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

The Fund serves as an underlying investment vehicle for variable annuity contracts and variable life insurance policies.

3

Investment Comparison

Below is a comparison of a $10,000 investment in Class VC shares with the same investment in the Barclays Capital U.S. Aggregate Bond Index, the BofA Merrill Lynch High Yield Master II Constrained Index, and the 60% BofA Merrill Lynch High Yield Master II Constrained Index/20% Barclays Capital U.S. Aggregate Bond Index/20% BofA Merrill Lynch All Convertible Index, assuming reinvestment of all dividends and distributions. The Fund’s shares are sold only to insurance company separate accounts that fund certain variable annuity and variable life contracts. This line graph comparison does not reflect the sales charges or other expenses of these contracts. If those sales charges and expenses were reflected, returns would be less. The graph and performance table below do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. During certain periods, expenses of the Fund have been waived or reimbursed by Lord Abbett; without such waiver or reimbursement of expenses, the Fund’s returns would have been lower. Past performance is no guarantee of future results.

Average Annual Total Returns for the

Periods Ended December 31, 2009

	1 Year	5 Years	Life of Class
Class VC2	34.31%	5.43%	7.51%

¹    Performance for each unmanaged index does not reflect transaction costs, management fees or sales charges. The performance of each index is not necessarily representative of the Fund’s performance. Performance for each index began on December 3, 2001.

²    The Class VC shares were first offered on December 3, 2001.

4

Expense Example

As 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 ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2009 through December 31, 2009).

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 products that invest in the Fund, are not reflected in this Example. If such fees and expenses were reflected in the Example, the total expenses shown would be higher. Fees and expenses regarding such variable insurance products are separately described in the prospectus related to those products.

Actual Expenses

The first line of the table on the following page provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading titled “Expenses Paid During the Period 7/1/09 – 12/31/09” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

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

5

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

	Beginning Account Value		Ending Account Value		Expenses Paid During Period†
	7/1/09		12/31/09		7/1/09 - 12/31/09
Class VC*
Actual	$	1,000.00	$	1,160.90	$	4.74
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.83	$	4.43

^† Net expenses are equal to the Fund’s annualized expense ratio of 0.87%, multiplied by the average account value over the period, multiplied by 184/365 (to reflect one-half year period).

* The annualized expenses of the Fund have been restated to 0.90%. Had these restated expenses been in place throughout the most recent one-half year period, expenses paid during the period would have been:

	Actual		Hypothetical (5% Return Before Expenses)
Class VC	$	4.90	$	4.58

Portfolio Holdings Presented by Sector

December 31, 2009

Sector*	%**	Sector*	%**
Agency	1.17%	Insurance	1.56%
Banking	3.85%	Media	5.84%
Basic Industry	8.79%	Real Estate	0.66%
Brokerage	0.52%	Services Cyclical	8.73%
Capital Goods	10.27%	Services Non-Cyclical	7.29%
Consumer Cyclical	7.20%	Technology & Electronics	7.32%
Consumer Non-Cyclical	6.97%	Telecommunications	7.14%
Energy	11.88%	Utility	6.05%
Finance & Investment	1.29%	Short-Term Investment	3.46%
Government Guaranteed	0.01%	Total	100.00%

* A sector may comprise several industries.

** Represents percent of total investments.

6

Schedule of Investments

December 31, 2009

Investments	Shares (000)	Value
LONG-TERM INVESTMENTS 94.96%
COMMON STOCKS 0.58%
Electric: Integrated 0.06%
CMS Energy Corp.	18	$	280,345
Media: Cable 0.44%
CCH I LLC Class A(a)	45		1,614,292
Charter Communications, Inc. Class A*(b)	11		378,111
Total			1,992,403
Multi-Line Insurance 0.08%
MetLife, Inc.	11		374,144
Total Common Stocks (cost $1,588,597)			2,646,892

	Interest Rate	Maturity Date	Principal Amount (000)
CONVERTIBLE BONDS 11.74%
Aerospace/Defense 0.67%
Alliant Techsystems, Inc.	2.75%	2/15/2024	$	750	855,937
GenCorp, Inc.	2.25%	11/15/2024		675	608,344
L-3 Communications Holdings, Inc.	3.00%	8/1/2035		1,500	1,582,500
Total					3,046,781
Agriculture 0.32%
Archer Daniels Midland Co.	0.875%	2/15/2014		1,400	1,473,500
Automotive 0.28%
Ford Motor Co.	4.25%	11/15/2016		1,000	1,258,750
Beverages 0.27%
Central European Distribution Corp. (Poland)(c)	3.00%	3/15/2013		475	405,531
Molson Coors Brewing Co.	2.50%	7/30/2013		750	832,500
Total					1,238,031
Building & Construction 0.07%
D.R. Horton, Inc.	2.00%	5/15/2014		300	333,750
Chemicals 0.12%
Ferro Corp.	6.50%	8/15/2013		600	535,500

See Notes to Financial Statements.

7

Schedule of Investments (continued)

December 31, 2009

Investments	Interest Rate	Maturity Date	Principal Amount (000)		Value
Computer Hardware 0.94%
Intel Corp.	2.95%	12/15/2035	$	1,250	$	1,212,500
NetApp, Inc.	1.75%	6/1/2013		750		933,750
SanDisk Corp.	1.00%	5/15/2013		2,500		2,096,875
Total						4,243,125
Diversified Capital Goods 0.14%
Ingersoll-Rand Co., Ltd.	4.50%	4/15/2012		300		617,250
Electronics 0.85%
Advanced Micro Devices, Inc.	5.75%	8/15/2012		533		528,336
Itron, Inc.	2.50%	8/1/2026		1,400		1,753,500
Millipore Corp.	3.75%	6/1/2026		1,500		1,554,375
Total						3,836,211
Health Services 0.32%
Fisher Scientific International, Inc.	3.25%	3/1/2024		500		666,250
NuVasive, Inc.	2.25%	3/15/2013		800		794,000
Total						1,460,250
Hotels 0.06%
Gaylord Entertainment Co.†	3.75%	10/1/2014		275		281,531
Integrated Energy 0.27%
Evergreen Solar, Inc.	4.00%	7/15/2013		550		287,375
SunPower Corp.	4.75%	4/15/2014		825		943,594
Total						1,230,969
Investments & Miscellaneous Financial Services 0.28%
Textron, Inc.	4.50%	5/1/2013		800		1,293,000
Machinery 0.36%
Roper Industries, Inc.	Zero Coupon	1/15/2034		2,500		1,640,625
Media: Broadcast 0.15%
Sinclair Broadcast Group, Inc.	6.00%	9/15/2012		835		696,181
Media: Cable 0.39%
Virgin Media, Inc.†	6.50%	11/15/2016		1,500		1,785,000
Media: Diversified 0.16%
Liberty Media LLC (convertible into Viacom, Inc., Class B and CBS Corp.)	3.25%	3/15/2031		1,200		720,000

See Notes to Financial Statements.

8

Schedule of Investments (continued)

December 31, 2009

Investments	Interest Rate	Maturity Date	Principal Amount (000)		Value
Metals/Mining (Excluding Steel) 0.60%
Newmont Mining Corp.	1.25%	7/15/2014	$	800	$	1,002,000
Newmont Mining Corp.	3.00%	2/15/2012		500		632,500
Patriot Coal Corp.	3.25%	5/31/2013		350		282,625
Placer Dome, Inc. (Canada)(c)	2.75%	10/15/2023		500		821,250
Total						2,738,375
Non-Food & Drug Retailers 0.08%
Saks, Inc.†	7.50%	12/1/2013		230		341,263
Oil Field Equipment & Services 0.08%
Hanover Compressor Co.	4.75%	1/15/2014		400		361,000
Pharmaceuticals 1.47%
ALZA Corp.	Zero Coupon	7/28/2020		1,000		931,250
BioMarin Pharmaceutical, Inc.	2.50%	3/29/2013		1,000		1,283,750
Gilead Sciences, Inc.	0.625%	5/1/2013		1,600		1,982,000
Teva Pharmaceutical Finance Co. BV (Israel)(c)	1.75%	2/1/2026		2,000		2,475,000
Total						6,672,000
Printing & Publishing 0.11%
Omnicom Group, Inc.	Zero Coupon	7/1/2038		500		493,750
Real Estate Development & Management 0.41%
ProLogis	2.25%	4/1/2037		2,000		1,865,000
Software/Services 1.17%
EMC Corp.	1.75%	12/1/2011		1,250		1,525,000
Equinix, Inc.	2.50%	4/15/2012		650		719,875
Sybase, Inc.†	3.50%	8/15/2029		1,000		1,190,000
Symantec Corp.	0.75%	6/15/2011		1,700		1,857,250
Total						5,292,125
Steel Producers/Products 0.14%
ArcelorMittal (Luxembourg)(c)	5.00%	5/15/2014		370		614,663
Support: Services 0.45%
CRA International, Inc.	2.875%	6/15/2034		835		823,519
FTI Consulting, Inc.	3.75%	7/15/2012		750		1,209,375
Total						2,032,894

See Notes to Financial Statements.

9

Schedule of Investments (continued)

December 31, 2009

Investments	Interest Rate	Maturity Date	Principal Amount (000)		Value
Telecommunications Equipment 1.03%
Ciena Corp.	0.25%	5/1/2013	$	2,000	$	1,520,000
General Cable Corp. (2.25% after 11/15/2019)~	4.50%	11/15/2029		1,387		1,433,811
JDS Uniphase Corp.	1.00%	5/15/2026		2,000		1,720,000
Total						4,673,811
Telecommunications: Integrated/Services 0.11%
Qwest Communications International, Inc.	3.50%	11/15/2025		500		521,250
Telecommunications: Wireless 0.44%
SBA Communications Corp.†	4.00%	10/1/2014		1,500		1,976,250
Total Convertible Bonds (cost $48,413,992)						53,272,835
			Shares (000)
CONVERTIBLE PREFERRED STOCKS 2.55%
Agency/Government Related 0.01%
Fannie Mae	8.75%			20		35,600
Banking 0.79%
Bank of America Corp.	7.25%			2		1,758,000
Wells Fargo & Co.	7.50%			2		1,836,000
Total						3,594,000
Gas Distribution 0.40%
El Paso Corp.	4.99%			1		904,000
Williams Cos., Inc. (The)	5.50%			9		910,238
Total						1,814,238
Investments & Miscellaneous Financial Services 0.47%
AMG Capital Trust I	5.10%			25		1,000,000
Citigroup, Inc.	7.50%			11		1,126,872
Total						2,126,872
Metals/Mining (Excluding Steel) 0.50%
Freeport-McMoRan Copper & Gold, Inc.	6.75%			8		921,600
Vale Capital Ltd. (Brazil)(c)	5.50%			25		1,348,750
Total						2,270,350

See Notes to Financial Statements.

10

Schedule of Investments (continued)

December 31, 2009

Investments	Interest Rate	Maturity Date	Shares (000)		Value
Pharmaceuticals 0.38%
Mylan, Inc.	6.50%			2	$	1,708,500
Total Convertible Preferred Stocks (cost $11,232,633)						11,549,560
			Principal Amount (000)
GOVERNMENT SPONSORED ENTERPRISES BOND 1.15%
Federal National Mortgage Assoc. (cost $5,141,354)	3.25%	4/9/2013	$	5,000		5,193,210
HIGH YIELD CORPORATE BONDS 78.93%
Aerospace/Defense 1.56%
Esterline Technologies Corp.	6.625%	3/1/2017		650		637,000
Esterline Technologies Corp.	7.75%	6/15/2013		1,060		1,087,825
L-3 Communications Corp.	6.125%	1/15/2014		750		758,437
L-3 Communications Corp.	6.375%	10/15/2015		2,400		2,421,000
Moog, Inc.	6.25%	1/15/2015		550		523,188
Spirit AeroSystems, Inc.†	7.50%	10/1/2017		200		198,000
Triumph Group, Inc.†	8.00%	11/15/2017		550		557,563
Vought Aircraft Industries, Inc.	8.00%	7/15/2011		925		916,906
Total						7,099,919
Airlines 0.05%
Delta Air Lines, Inc.†	9.50%	9/15/2014		200		208,750
Apparel/Textiles 0.76%
Jones Apparel Group, Inc.	6.125%	11/15/2034		1,150		957,375
Levi Strauss & Co.	8.875%	4/1/2016		1,650		1,734,563
Quiksilver, Inc.	6.875%	4/15/2015		900		742,500
Total						3,434,438
Auto Loans 0.93%
Ford Motor Credit Co. LLC	7.25%	10/25/2011		2,250		2,273,207
Ford Motor Credit Co. LLC	9.75%	9/15/2010		500		516,011
Ford Motor Credit Co. LLC	9.875%	8/10/2011		1,350		1,413,998
Total						4,203,216
Auto Parts & Equipment 0.84%
Cooper-Standard Automotive, Inc.(d)	8.375%	12/15/2014		600		156,000
Goodyear Tire & Rubber Co. (The)	10.50%	5/15/2016		700		777,000
Stanadyne Corp.	10.00%	8/15/2014		375		343,125

See Notes to Financial Statements.

11

Schedule of Investments (continued)

December 31, 2009

Investments	Interest Rate	Maturity Date		Principal Amount (000)		Value
Auto Parts & Equipment (continued)
Tenneco, Inc.	8.625%	11/15/2014		$	625	$	633,594
TRW Automotive, Inc.†	7.25%	3/15/2017			1,250		1,218,750
TRW Automotive, Inc.†	8.875%	12/1/2017			675		705,375
Total							3,833,844
Automotive 0.38%
Ford Motor Co.	7.45%	7/16/2031			1,375		1,222,031
Navistar International Corp.	8.25%	11/1/2021			475		489,250
Total							1,711,281
Banking 2.99%
American Express Credit Corp.	7.30%	8/20/2013			1,000		1,124,785
Bank of America Corp.	5.75%	12/1/2017			1,000		1,025,636
Capital One Capital VI	8.875%	5/15/2040			825		884,813
Discover Bank	8.70%	11/18/2019			500		536,573
GMAC, Inc.†	7.25%	3/2/2011			2,162		2,162,000
JPMorgan Chase & Co.	6.00%	1/15/2018			1,500		1,615,072
JPMorgan Chase & Co.	7.90%	–	(e)		750		776,126
Morgan Stanley	6.00%	4/28/2015			1,500		1,599,651
Royal Bank of Scotland Group plc (The) (United Kingdom)(c)	5.00%	11/12/2013			775		696,606
Royal Bank of Scotland Group plc (The) (United Kingdom)(c)	6.40%	10/21/2019			375		374,469
USB Capital IX	6.189%	–	(e)		600		488,250
Wachovia Capital Trust III	5.80%	–	(e)		750		581,250
Zions Bancorp	7.75%	9/23/2014			1,900		1,678,336
Total							13,543,567
Beverages 0.79%
CEDC Finance Corp. International, Inc.†	9.125%	12/1/2016			1,000		1,035,000
Constellation Brands, Inc.	7.25%	5/15/2017			2,500		2,546,875
Total							3,581,875
Brokerage 0.51%
Cantor Fitzgerald LP†	7.875%	10/15/2019			400		392,117
Lazard Group LLC	7.125%	5/15/2015			850		883,401
Raymond James Financial, Inc.	8.60%	8/15/2019			950		1,029,463
Total							2,304,981

See Notes to Financial Statements.

12

Schedule of Investments (continued)

December 31, 2009

Investments	Interest Rate	Maturity Date	Principal Amount (000)		Value
Building & Construction 0.66%
Beazer Homes USA, Inc.	8.375%	4/15/2012	$	275	$	259,875
K. Hovnanian Enterprises, Inc.†	10.625%	10/15/2016		500		525,000
KB Home	9.10%	9/15/2017		1,000		1,055,000
Lennar Corp.	12.25%	6/1/2017		950		1,149,500
Total						2,989,375
Building Materials 0.50%
Cemex Finance LLC†	9.50%	12/14/2016		250		263,125
Interline Brands, Inc.	8.125%	6/15/2014		1,025		1,035,250
Owens Corning, Inc.	9.00%	6/15/2019		875		977,366
Total						2,275,741
Chemicals 2.71%
Airgas, Inc.†	7.125%	10/1/2018		1,250		1,306,250
Ashland, Inc.†	9.125%	6/1/2017		1,075		1,182,500
Dow Chemical Co. (The)	8.55%	5/15/2019		1,000		1,195,143
Equistar Chemicals LP(d)	7.55%	2/15/2026		1,500		1,072,500
IMC Global, Inc.	7.30%	1/15/2028		1,050		1,107,864
INEOS Group Holdings plc (United Kingdom)†(c)	8.50%	2/15/2016		1,500		1,016,250
INVISTA†	9.25%	5/1/2012		725		739,500
Koppers, Inc.†	7.875%	12/1/2019		125		126,875
Mosaic Co. (The)†	7.375%	12/1/2014		500		535,396
Nalco Co.†	8.25%	5/15/2017		675		720,563
Nalco Co.	8.875%	11/15/2013		875		905,625
Potash Corp. of Saskatchewan, Inc. (Canada)(c)	4.875%	3/30/2020		500		494,294
Rockwood Specialties Group, Inc.	7.50%	11/15/2014		850		862,750
Terra Capital, Inc.†	7.75%	11/1/2019		950		1,021,250
Total						12,286,760
Consumer/Commercial/Lease Financing 0.18%
International Lease Finance Corp.	6.375%	3/25/2013		1,000		822,745
Consumer Products 0.35%
Elizabeth Arden, Inc.	7.75%	1/15/2014		1,625		1,608,750
Diversified Capital Goods 2.64%
Actuant Corp.	6.875%	6/15/2017		2,100		2,008,125
Belden, Inc.	7.00%	3/15/2017		1,400		1,370,250
Belden, Inc.†	9.25%	6/15/2019		675		716,344

See Notes to Financial Statements.

13

Schedule of Investments (continued)

December 31, 2009

Investments	Interest Rate	Maturity Date	Principal Amount (000)		Value
Diversified Capital Goods (continued)
General Cable Corp.	7.125%	4/1/2017	$	850	$	839,375
Ingersoll-Rand Global Holding Co., Ltd.	9.50%	4/15/2014		1,700		2,033,222
Mueller Water Products, Inc.	7.375%	6/1/2017		1,275		1,185,750
Park-Ohio Industries, Inc.	8.375%	11/15/2014		525		405,563
RBS Global & Rexnord Corp.	9.50%	8/1/2014		2,050		2,065,375
Sensus USA, Inc.	8.625%	12/15/2013		405		415,631
Timken Co.	6.00%	9/15/2014		875		921,760
Total						11,961,395
Electric: Generation 3.24%
Dynegy Holdings, Inc.	7.75%	6/1/2019		575		501,688
Dynegy Holdings, Inc.	8.375%	5/1/2016		2,465		2,354,075
Edison Mission Energy	7.00%	5/15/2017		1,825		1,450,875
Edison Mission Energy	7.75%	6/15/2016		2,900		2,479,500
Mirant Americas Generation LLC	9.125%	5/1/2031		1,500		1,357,500
Mirant North America LLC	7.375%	12/31/2013		750		745,312
NRG Energy, Inc.	7.25%	2/1/2014		800		812,000
NRG Energy, Inc.	7.375%	2/1/2016		1,100		1,104,125
RRI Energy, Inc.	6.75%	12/15/2014		387		396,675
Texas Competitive Electric Holdings Co. LLC	10.25%	11/1/2015		4,300		3,504,500
Total						14,706,250
Electric: Integrated 2.64%
AES Corp. (The)	8.00%	10/15/2017		1,600		1,650,000
Central Illinois Light Co.	8.875%	12/15/2013		1,000		1,132,525
Commonwealth Edison Co.	5.80%	3/15/2018		1,900		2,018,300
Connecticut Light & Power Co. (The)	5.50%	2/1/2019		1,100		1,162,836
E. ON International Finance BV (Netherlands)†(c)	5.80%	4/30/2018		1,000		1,075,782
Nevada Power Co.	5.875%	1/15/2015		1,000		1,074,316
Northeast Utilities	5.65%	6/1/2013		1,000		1,035,287
PECO Energy Co.	5.35%	3/1/2018		500		526,335
PSEG Power LLC†	5.32%	9/15/2016		2,242		2,309,957
Total						11,985,338
Electronics 1.01%
Advanced Micro Devices, Inc.†	8.125%	12/15/2017		200		200,250
Agilent Technologies, Inc.	5.50%	9/14/2015		725		760,874
Amphenol Corp.	4.75%	11/15/2014		275		275,392

See Notes to Financial Statements.

14

Schedule of Investments (continued)

December 31, 2009

Investments	Interest Rate		Maturity Date	Principal Amount (000)		Value
Electronics (continued)
Analog Devices, Inc.	5.00%		7/1/2014	$	450	$	469,907
Freescale Semiconductor, Inc.	8.875%		12/15/2014		1,500		1,383,750
KLA-Tencor Corp.	6.90%		5/1/2018		875		922,082
NXP BV LLC (Netherlands)(c)	3.034%	#	10/15/2013		700		583,625
Total							4,595,880
Energy: Exploration & Production 3.98%
Chesapeake Energy Corp.	6.25%		1/15/2018		1,600		1,544,000
Chesapeake Energy Corp.	7.25%		12/15/2018		750		759,375
Cimarex Energy Co.	7.125%		5/1/2017		1,675		1,700,125
Concho Resources, Inc.	8.625%		10/1/2017		575		606,625
Continental Resources, Inc.†	8.25%		10/1/2019		1,550		1,635,250
Forest Oil Corp.	7.25%		6/15/2019		1,325		1,315,062
Forest Oil Corp.†	8.50%		2/15/2014		525		551,250
Hercules Offshore, Inc.†	10.50%		10/15/2017		650		689,000
KCS Energy Services, Inc.	7.125%		4/1/2012		610		614,575
Kerr-McGee Corp.	6.95%		7/1/2024		1,600		1,736,811
Newfield Exploration Co.	7.125%		5/15/2018		1,250		1,268,750
Questar Market Resources, Inc.	6.80%		3/1/2020		400		417,687
Quicksilver Resources, Inc.	7.125%		4/1/2016		600		562,500
Quicksilver Resources, Inc.	8.25%		8/1/2015		1,300		1,339,000
Range Resources Corp.	7.25%		5/1/2018		125		128,125
Range Resources Corp.	7.375%		7/15/2013		360		368,100
Range Resources Corp.	8.00%		5/15/2019		1,000		1,075,000
Ras Laffan Liquefied Natural Gas Co., Ltd. III (Qatar)†(c)	5.50%		9/30/2014		650		684,219
XTO Energy, Inc.	5.50%		6/15/2018		1,000		1,068,475
Total							18,063,929
Environmental 0.22%
Clean Harbors, Inc.	7.625%		8/15/2016		1,000		1,018,750
Food & Drug Retailers 1.93%
Duane Reade, Inc.	11.75%		8/1/2015		1,475		1,607,750
Ingles Markets, Inc.	8.875%		5/15/2017		1,275		1,332,375
Rite Aid Corp.	9.375%		12/15/2015		975		862,875
Rite Aid Corp.†	10.25%		10/15/2019		1,100		1,166,000

See Notes to Financial Statements.

15

Schedule of Investments (continued)

December 31, 2009

Investments	Interest Rate	Maturity Date	Principal Amount (000)		Value
Food & Drug Retailers (continued)
Stater Brothers Holdings, Inc.	8.125%	6/15/2012	$	1,225	$	1,243,375
SUPERVALU, INC.	7.50%	11/15/2014		2,500		2,543,750
Total						8,756,125
Food: Wholesale 1.22%
Bumble Bee Foods LLC†	7.75%	12/15/2015		675		678,375
Bunge NA Finance LP	5.90%	4/1/2017		325		322,190
Del Monte Corp.†	7.50%	10/15/2019		325		336,375
Dole Food Co., Inc.	8.75%	7/15/2013		1,400		1,442,000
General Mills, Inc.	5.20%	3/17/2015		950		1,014,942
H.J. Heinz Co.	5.35%	7/15/2013		525		564,822
Mead Johnson Nutrition Co.†	4.90%	11/1/2019		400		397,361
Pinnacle Foods Finance LLC/Pinnacle Foods Finance Corp.†	9.25%	4/1/2015		450		459,000
Pinnacle Foods Finance LLC/Pinnacle Foods Finance Corp.	10.625%	4/1/2017		300		313,500
Total						5,528,565
Forestry/Paper 1.29%
Boise Paper Holdings LLC/Boise Finance Co.†	9.00%	11/1/2017		200		208,250
Cascades, Inc. (Canada)†(c)	7.75%	12/15/2017		350		355,250
Cascades, Inc. (Canada)†(c)	7.875%	1/15/2020		250		255,000
Cellu Tissue Holdings, Inc.	11.50%	6/1/2014		600		669,000
Georgia-Pacific LLC†	8.25%	5/1/2016		1,600		1,704,000
International Paper Co.	7.95%	6/15/2018		525		606,494
Jefferson Smurfit Corp.(d)	7.50%	6/1/2013		70		61,950
Jefferson Smurfit Corp.(d)	8.25%	10/1/2012		250		221,250
PE Paper Escrow GmbH (Austria)†(c)	12.00%	8/1/2014		300		332,088
Stone Container Corp.(d)	8.00%	3/15/2017		1,200		1,063,500
Weyerhaeuser Co.	7.375%	10/1/2019		375		392,562
Total						5,869,344
Gaming 3.37%
Ameristar Casinos, Inc.†	9.25%	6/1/2014		850		886,125
Boyd Gaming Corp.	7.125%	2/1/2016		1,250		1,093,750
Downstream Development Authority Quapaw Tribe of Oklahoma†	12.00%	10/15/2015		600		497,250
Harrah’s Operating Co., Inc.†	11.25%	6/1/2017		1,100		1,156,375

See Notes to Financial Statements.

16

Schedule of Investments (continued)

December 31, 2009

Investments	Interest Rate	Maturity Date	Principal Amount (000)		Value
Gaming (continued)
Harrah’s Operating Escrow LLC/Harrah’s Escrow Corp.†	11.25%	6/1/2017	$	225	$	236,531
International Game Technology	7.50%	6/15/2019		375		407,056
Isle of Capri Casinos, Inc.	7.00%	3/1/2014		1,850		1,655,750
Las Vegas Sands Corp.	6.375%	2/15/2015		1,100		979,000
MGM Mirage	6.75%	9/1/2012		1,000		897,500
Mohegan Tribal Gaming Authority†	11.50%	11/1/2017		900		922,500
Peninsula Gaming LLC†	8.375%	8/15/2015		250		250,625
River Rock Entertainment Authority (The)	9.75%	11/1/2011		975		923,812
Scientific Games Corp.	6.25%	12/15/2012		625		618,750
Scientific Games International, Inc.	9.25%	6/15/2019		850		896,750
Seneca Gaming Corp.	7.25%	5/1/2012		1,000		980,000
Shingle Springs Tribal Gaming Authority†	9.375%	6/15/2015		500		382,500
Snoqualmie Entertainment Authority†	9.125%	2/1/2015		1,300		695,500
Turning Stone Casino Resort†	9.125%	9/15/2014		200		196,500
Wynn Las Vegas LLC/Capital Corp.†	7.875%	11/1/2017		1,600		1,628,000
Total						15,304,274
Gas Distribution 3.87%
Colorado Interstate Gas Co.	6.80%	11/15/2015		829		919,415
El Paso Corp.	7.00%	6/15/2017		975		971,872
El Paso Corp.	7.25%	6/1/2018		250		248,250
El Paso Corp.	8.25%	2/15/2016		675		723,938
El Paso Natural Gas Co.	5.95%	4/15/2017		750		776,269
Ferrellgas Escrow LLC/Ferrellgas Finance Escrow Corp.	6.75%	5/1/2014		1,100		1,089,000
Florida Gas Transmission Co. LLC†	7.90%	5/15/2019		300		351,730
Inergy LP/Inergy Finance Corp.	8.25%	3/1/2016		1,000		1,020,000
Inergy LP/Inergy Finance Corp.	8.75%	3/1/2015		250		258,125
MarkWest Energy Partners LP	6.875%	11/1/2014		875		840,000
MarkWest Energy Partners LP	8.75%	4/15/2018		1,100		1,138,500
National Fuel Gas Co.	6.50%	4/15/2018		1,440		1,497,554
NiSource Finance Corp.	6.15%	3/1/2013		400		426,208
Northwest Pipeline GP	6.05%	6/15/2018		175		185,445
Northwest Pipeline GP	7.00%	6/15/2016		1,500		1,691,202
Panhandle Eastern Pipeline Co. LP	7.00%	6/15/2018		460		508,760
Panhandle Eastern Pipeline Co. LP	8.125%	6/1/2019		1,000		1,157,327
Tennessee Gas Pipeline Co.	7.50%	4/1/2017		975		1,086,102

See Notes to Financial Statements.

17

Schedule of Investments (continued)

December 31, 2009

Investments	Interest Rate	Maturity Date	Principal Amount (000)		Value
Gas Distribution (continued)
Williams Cos., Inc. (The)	7.875%	9/1/2021	$	1,000	$	1,149,280
Williams Partners LP	7.25%	2/1/2017		1,500		1,517,362
Total						17,556,339
Health Services 6.62%
Apria Healthcare Group, Inc.†	11.25%	11/1/2014		625		689,063
Bausch & Lomb, Inc.	9.875%	11/1/2015		1,600		1,696,000
Bio-Rad Laboratories, Inc.	6.125%	12/15/2014		1,250		1,256,250
Bio-Rad Laboratories, Inc.†	8.00%	9/15/2016		1,000		1,057,500
Biomet, Inc.	10.00%	10/15/2017		1,000		1,091,250
Centene Corp.	7.25%	4/1/2014		1,350		1,343,250
Community Health Systems, Inc.	8.875%	7/15/2015		3,000		3,112,500
DaVita, Inc.	7.25%	3/15/2015		1,200		1,209,000
Hanger Orthopedic Group, Inc.	10.25%	6/1/2014		725		772,125
HCA, Inc.†	7.875%	2/15/2020		500		521,875
HCA, Inc.†	8.50%	4/15/2019		1,275		1,380,187
HCA, Inc.	9.125%	11/15/2014		4,500		4,758,750
HCA, Inc.†	9.875%	2/15/2017		500		555,000
HealthSouth Corp.	8.125%	2/15/2020		1,350		1,336,500
National Mentor Holdings, Inc.	11.25%	7/1/2014		225		230,625
Select Medical Corp.	7.625%	2/1/2015		1,900		1,852,500
Sun Healthcare Group, Inc.	9.125%	4/15/2015		2,000		2,065,000
Tenet Healthcare Corp.†	8.875%	7/1/2019		650		705,250
United Surgical Partners, Inc.	8.875%	5/1/2017		1,500		1,552,500
Vanguard Health Holdings Co. II LLC	9.00%	10/1/2014		2,000		2,082,500
VWR Funding, Inc. PIK	10.25%	7/15/2015		750		783,750
Total						30,051,375
Hotels 0.77%
FelCor Lodging LP†	10.00%	10/1/2014		375		380,156
Host Hotels & Resorts LP	6.375%	3/15/2015		1,000		985,000
Host Hotels & Resorts LP	7.00%	8/15/2012		500		510,625
Hyatt Hotels Corp.†	5.75%	8/15/2015		500		503,594
Starwood Hotels & Resorts Worldwide, Inc.	6.25%	2/15/2013		119		123,314
Starwood Hotels & Resorts Worldwide, Inc.	6.75%	5/15/2018		1,000		1,007,500
Total						3,510,189

See Notes to Financial Statements.

18

Schedule of Investments (continued)

December 31, 2009

Investments	Interest Rate	Maturity Date	Principal Amount (000)		Value
Household & Leisure Products 0.93%
ACCO Brands Corp.†	10.625%	3/15/2015	$	275	$	303,875
Brunswick Corp.†	11.25%	11/1/2016		225		254,250
Mattel, Inc.	5.625%	3/15/2013		1,000		1,057,185
Newell Rubbermaid, Inc.	10.60%	4/15/2019		800		1,007,931
Whirlpool Corp.	8.60%	5/1/2014		1,425		1,614,944
Total						4,238,185
Integrated Energy 0.72%
Marathon Oil Corp.	6.50%	2/15/2014		1,113		1,232,279
Petrobras International Finance Co. (Brazil)(c)	5.875%	3/1/2018		2,000		2,026,820
Total						3,259,099
Investments & Miscellaneous Financial Services 0.34%
BlackRock, Inc.	3.50%	12/10/2014		425		420,133
FMR LLC†	5.35%	11/15/2021		400		382,570
Nuveen Investments, Inc.	10.50%	11/15/2015		800		730,000
Total						1,532,703
Leisure 0.55%
Speedway Motorsports, Inc.	8.75%	6/1/2016		1,500		1,590,000
Universal City Development Partners Ltd.†	8.875%	11/15/2015		500		491,875
Universal City Development Partners Ltd.†	10.875%	11/15/2016		400		403,000
Total						2,484,875
Life Insurance 0.34%
MetLife, Inc.	5.00%	6/15/2015		975		1,026,705
UnitedHealth Group, Inc.	4.875%	4/1/2013		500		524,352
Total						1,551,057
Machinery 1.52%
Altra Holdings, Inc.†	8.125%	12/1/2016		1,075		1,108,594
Baldor Electric Co.	8.625%	2/15/2017		3,025		3,108,187
Gardner Denver, Inc.	8.00%	5/1/2013		1,075		1,058,875
Roper Industries, Inc.	6.25%	9/1/2019		550		573,623
Roper Industries, Inc.	6.625%	8/15/2013		950		1,035,448
Total						6,884,727
Media: Broadcast 1.13%
Allbritton Communications Co.	7.75%	12/15/2012		1,200		1,186,500
Belo Corp.	8.00%	11/15/2016		300		309,750

See Notes to Financial Statements.

19

Schedule of Investments (continued)

December 31, 2009

Investments	Interest Rate		Maturity Date	Principal Amount (000)		Value
Media: Broadcast (continued)
CBS Corp.	8.875%		5/15/2019	$	1,200	$	1,437,966
Discovery Communications LLC	5.625%		8/15/2019		550		568,942
FoxCo Acquisition Sub LLC†	13.375%		7/15/2016		300		233,625
Grupo Televisa SA (Mexico)(c)	6.00%		5/15/2018		200		202,248
Lin TV Corp.	6.50%		5/15/2013		500		485,000
Salem Communications Corp.†	9.625%		12/15/2016		400		421,000
Sinclair Broadcast Group, Inc.	8.00%		3/15/2012		292		286,160
Total							5,131,191
Media: Cable 1.88%
CCH II LLC/CCH II Capital Corp.†	13.50%		11/30/2016		367		429,943
CSC Holdings, Inc.†	8.625%		2/15/2019		1,700		1,838,125
DirecTV Holdings LLC/DirecTV Financing Co., Inc.	6.375%		6/15/2015		1,550		1,617,812
DISH DBS Corp.	7.125%		2/1/2016		1,075		1,103,219
Mediacom Broadband LLC	8.50%		10/15/2015		625		634,375
Mediacom Communications Corp.†	9.125%		8/15/2019		1,475		1,511,875
Virgin Media Finance plc (United Kingdom)(c)	8.375%		10/15/2019		500		516,875
Virgin Media Finance plc (United Kingdom)(c)	9.50%		8/15/2016		800		863,000
Total							8,515,224
Media: Services 1.35%
Affinion Group, Inc.	10.125%		10/15/2013		300		309,750
Affinion Group, Inc.	11.50%		10/15/2015		865		910,413
Interpublic Group of Cos., Inc. (The)	6.25%		11/15/2014		1,610		1,553,650
Interpublic Group of Cos., Inc. (The)	10.00%		7/15/2017		875		975,625
WMG Acquisition Corp.†	9.50%		6/15/2016		2,200		2,367,750
Total							6,117,188
Metals/Mining (Excluding Steel) 2.33%
Aleris International, Inc.(d)	10.00%		12/15/2016		850		6,375
Anglo American Capital plc (United Kingdom)†(c)	9.375%		4/8/2014		300		360,305
Arch Coal, Inc.†	8.75%		8/1/2016		700		743,750
Barrick Gold Corp. (Canada)(c)	6.95%		4/1/2019		300		338,369
Foundation PA Coal Co.	7.25%		8/1/2014		750		763,125
Freeport-McMoRan Copper & Gold, Inc.	8.375%		4/1/2017		2,025		2,220,415
Murray Energy Corp.†	10.25%		10/15/2015		1,000		1,000,000
Noranda Aluminum Acquisition Corp. PIK	5.274%	#	5/15/2015		1,149		897,514
Peabody Energy Corp.	5.875%		4/15/2016		1,000		980,000

See Notes to Financial Statements.

20

Schedule of Investments (continued)

December 31, 2009

Investments	Interest Rate		Maturity Date	Principal Amount (000)		Value
Metals/Mining (Excluding Steel) (continued)
Peabody Energy Corp.	7.375%		11/1/2016	$	225	$	233,156
Teck Resources Ltd. (Canada)(c)	9.75%		5/15/2014		525		608,344
Teck Resources Ltd. (Canada)(c)	10.75%		5/15/2019		2,000		2,400,000
Total							10,551,353
Mortgage Banks & Thrifts 0.00%
Washington Mutual Bank(d)	6.875%		6/15/2011		1,250		12,500
Multi-Line Insurance 0.77%
American International Group, Inc.	8.25%		8/15/2018		1,000		940,253
AXA SA (France)†(c)	6.379%		12/29/2049		550		445,500
HUB International Holdings, Inc.†	9.00%		12/15/2014		475		456,000
USI Holdings Corp.†	4.148%	#	11/15/2014		1,125		929,531
Willis North America, Inc.	7.00%		9/29/2019		600		612,025
ZFS Finance (USA) Trust V†	6.50%		5/9/2037		145		125,425
Total							3,508,734
Non-Food & Drug Retailers 2.11%
Brookstone Co., Inc.	12.00%		10/15/2012		675		452,250
J.C. Penney Corp., Inc.	6.875%		10/15/2015		150		159,000
J.C. Penney Corp., Inc.	7.125%		11/15/2023		300		298,875
J.C. Penney Corp., Inc.	7.95%		4/1/2017		250		274,375
Limited Brands, Inc.	6.90%		7/15/2017		825		828,094
Limited Brands, Inc.	7.60%		7/15/2037		400		358,000
Limited Brands, Inc.†	8.50%		6/15/2019		900		983,250
Macy’s Retail Holdings, Inc.	5.90%		12/1/2016		1,700		1,666,000
Macy’s Retail Holdings, Inc.	6.375%		3/15/2037		945		803,250
Macy’s Retail Holdings, Inc.	8.875%		7/15/2015		850		941,375
Nordstrom, Inc.	6.25%		1/15/2018		800		867,351
Toys “R” Us Property Co. I LLC†	10.75%		7/15/2017		1,150		1,265,000
Toys “R” Us Property Co. II LLC†	8.50%		12/1/2017		650		664,625
Total							9,561,445
Oil Field Equipment & Services 1.90%
Bristow Group, Inc.	6.125%		6/15/2013		1,500		1,488,750
Cameron International Corp.	6.375%		7/15/2018		475		507,471
Complete Production Services, Inc.	8.00%		12/15/2016		1,200		1,189,500
Dresser-Rand Group, Inc.	7.375%		11/1/2014		854		849,730
Hornbeck Offshore Services, Inc.†	8.00%		9/1/2017		975		979,875

See Notes to Financial Statements.

21

Schedule of Investments (continued)

December 31, 2009

Investments	Interest Rate	Maturity Date	Principal Amount (000)		Value
Oil Field Equipment & Services (continued)
Hornbeck Offshore Services, Inc. Series B	6.125%	12/1/2014	$	450	$	422,438
Key Energy Services, Inc.	8.375%	12/1/2014		525		528,938
National Oilwell Varco, Inc.	6.125%	8/15/2015		1,000		1,004,375
Pride International, Inc.	7.375%	7/15/2014		605		627,687
SEACOR Holdings, Inc.	7.375%	10/1/2019		1,000		1,014,088
Total						8,612,852
Oil Refining & Marketing 0.47%
Tesoro Corp.	6.25%	11/1/2012		875		875,000
Tesoro Corp.	9.75%	6/1/2019		1,200		1,248,000
Total						2,123,000
Packaging 2.71%
Ball Corp.	6.625%	3/15/2018		1,300		1,290,250
Ball Corp.	7.375%	9/1/2019		1,500		1,548,750
Crown Americas LLC/Crown Americas Capital Corp. II†	7.625%	5/15/2017		1,000		1,042,500
Crown Cork & Seal Co., Inc.	7.375%	12/15/2026		1,870		1,743,775
Graham Packaging Co LP/GPC Capital Corp. I†	8.25%	1/1/2017		400		397,000
Graphic Packaging International Corp.	9.50%	8/15/2013		1,245		1,291,687
Owens-Brockway Glass Container, Inc.	7.375%	5/15/2016		1,250		1,296,875
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC†	7.75%	10/15/2016		625		642,188
Sealed Air Corp.†	7.875%	6/15/2017		1,000		1,066,666
Solo Cup Co.	8.50%	2/15/2014		800		786,000
Solo Cup Co.†	10.50%	11/1/2013		500		535,000
Vitro SA de CV (Mexico)(c)(d)	9.125%	2/1/2017		1,500		652,500
Total						12,293,191
Pharmaceuticals 0.44%
Axcan Intermediate Holdings, Inc.	12.75%	3/1/2016		575		645,437
Boston Scientific Corp.	4.50%	1/15/2015		275		275,868
Novartis Securities Investment Ltd.	5.125%	2/10/2019		725		763,018
Watson Pharmaceuticals, Inc.	5.00%	8/15/2014		300		306,607
Total						1,990,930
Printing & Publishing 0.13%
Deluxe Corp.	7.375%	6/1/2015		600		581,250

See Notes to Financial Statements.

22

Schedule of Investments (continued)

December 31, 2009

Investments	Interest Rate		Maturity Date	Principal Amount (000)		Value
Property & Casualty 0.34%
Liberty Mutual Group, Inc.†	10.75%		6/15/2058	$	1,425	$	1,524,750
Real Estate Investment Trusts 0.24%
DuPont Fabros Technology LP†	8.50%		12/15/2017		625		638,281
ProLogis	5.625%		11/15/2016		500		461,411
Total							1,099,692
Restaurants 0.78%
Denny’s Corp./Denny’s Holdings, Inc.	10.00%		10/1/2012		1,000		1,027,500
McDonald’s Corp.	5.00%		2/1/2019		1,350		1,413,596
Wendy’s/Arby’s Restaurants LLC	10.00%		7/15/2016		1,000		1,095,000
Total							3,536,096
Software/Services 2.21%
Ceridian Corp.	11.25%		11/15/2015		1,000		958,750
First Data Corp.	9.875%		9/24/2015		2,200		2,062,500
Open Solutions, Inc.†	9.75%		2/1/2015		600		464,250
SERENA Software, Inc.	10.375%		3/15/2016		500		483,125
SunGard Data Systems, Inc.	9.125%		8/15/2013		1,650		1,699,500
SunGard Data Systems, Inc.	10.25%		8/15/2015		2,000		2,140,000
Syniverse Technologies, Inc.	7.75%		8/15/2013		1,450		1,448,187
Vangent, Inc.	9.625%		2/15/2015		800		757,000
Total							10,013,312
Steel Producers/Products 0.64%
Algoma Acquisition Corp. (Canada)†(c)	9.875%		6/15/2015		1,075		920,469
Allegheny Ludlum Corp.	6.95%		12/15/2025		575		522,169
Allegheny Technologies, Inc.	9.375%		6/1/2019		800		922,327
Essar Steel Algoma, Inc. (Canada)†(c)	9.375%		3/15/2015		525		520,406
Total							2,885,371
Support: Services 2.18%
ARAMARK Corp.	3.781%	#	2/1/2015		1,250		1,150,000
Ashtead Capital, Inc.†	9.00%		8/15/2016		475		477,969
Corrections Corp. of America	7.75%		6/1/2017		1,400		1,449,000
Expedia, Inc.†	8.50%		7/1/2016		725		787,531
FTI Consulting, Inc.	7.75%		10/1/2016		750		763,125
Geo Group, Inc. (The)†	7.75%		10/15/2017		725		745,844
Hertz Corp. (The)	8.875%		1/1/2014		1,275		1,310,062

See Notes to Financial Statements.

23

Schedule of Investments (continued)

December 31, 2009

Investments	Interest Rate		Maturity Date	Principal Amount (000)		Value
Support: Services (continued)
Iron Mountain, Inc.	7.75%		1/15/2015	$	800	$	808,000
JohnsonDiversey, Inc.†	8.25%		11/15/2019		450		457,875
Rental Service Corp.	9.50%		12/1/2014		500		503,125
Rental Service Corp.†	10.00%		7/15/2017		350		382,375
Travelport LLC	9.875%		9/1/2014		220		228,250
United Rentals (North America), Inc.	10.875%		6/15/2016		750		819,375
Total							9,882,531
Telecommunications: Integrated/Services 2.92%
CenturyTel, Inc.	6.15%		9/15/2019		875		896,199
Cincinnati Bell, Inc.	8.375%		1/15/2014		2,500		2,556,250
GeoEye, Inc.†	9.625%		10/1/2015		1,250		1,292,187
Hughes Network Systems LLC	9.50%		4/15/2014		600		622,500
Hughes Network Systems LLC	9.50%		4/15/2014		900		924,750
MasTec, Inc.	7.625%		2/1/2017		750		724,688
Nordic Telephone Holdings Co. (Denmark)†(c)	8.875%		5/1/2016		2,000		2,125,000
Qwest Communications International, Inc.	7.25%		2/15/2011		1,500		1,515,000
Qwest Communications International, Inc.†	8.00%		10/1/2015		450		464,625
Telemar Norte Leste SA (Brazil)†(c)	9.50%		4/23/2019		200		240,000
Windstream Corp.	7.00%		3/15/2019		2,000		1,880,000
Total							13,241,199
Telecommunications: Wireless 3.56%
CC Holdings GS V LLC/Crown Castle GS III Corp.†	7.75%		5/1/2017		1,975		2,113,250
DigitalGlobe, Inc.†	10.50%		5/1/2014		2,600		2,795,000
Inmarsat Finance plc (United Kingdom)†(c)	7.375%		12/1/2017		450		462,375
IPCS, Inc. PIK	4.281%	#	5/1/2014		512		438,019
MetroPCS Wireless, Inc.	9.25%		11/1/2014		2,000		2,035,000
NII Capital Corp.†	8.875%		12/15/2019		800		783,000
NII Capital Corp.†	10.00%		8/15/2016		900		947,250
SBA Telecommunications, Inc.†	8.25%		8/15/2019		500		532,500
Sprint Capital Corp.	6.90%		5/1/2019		2,650		2,451,250
Sprint Nextel Corp.	8.375%		8/15/2017		1,725		1,768,125
ViaSat, Inc.†	8.875%		9/15/2016		525		543,375
Wind Acquisition Finance SA (Italy)†(c)	11.75%		7/15/2017		1,150		1,262,125
Total							16,131,269

See Notes to Financial Statements.

24

Schedule of Investments (continued)

December 31, 2009

Investments	Interest Rate	Maturity Date	Principal Amount (000)		Value
Theaters & Entertainment 0.30%
Cinemark USA, Inc.†	8.625%	6/15/2019	$	875	$	914,375
Regal Cinemas Corp.	8.625%	7/15/2019		425		444,125
Total						1,358,500
Transportation (Excluding Air/Rail) 0.13%
Commercial Barge Line Co.†	12.50%	7/15/2017		550		574,750
Total High Yield Corporate Bonds (cost $345,362,080)						358,009,969
			Shares (000)
NON-CONVERTIBLE PREFERRED STOCK 0.01%
Agency/Government Guaranteed 0.01%
Fannie Mae (cost $514,837)				21		22,550
WARRANT 0.00%
Media: Services
Charter Communications, Inc. (11/30/2014 at $46.86)* (cost $11,592)				3		20,700
Total Long-Term Investments (cost $412,265,085)						430,715,716
			Principal Amount (000)
SHORT-TERM INVESTMENT 3.40%
Repurchase Agreement
Repurchase Agreement dated 12/31/2009, Zero Coupon due 1/4/2010 with Fixed Income Clearing Corp. collateralized by $15,675,000 of Federal Home Loan Bank at 0.95% due 11/30/2010; value: $15,753,375; proceeds: $15,440,196 (cost $15,440,196)			$	15,440		15,440,196
Total Investments in Securities 98.36% (cost $427,705,281)						446,155,912
Cash and Other Assets in Excess of Liabilities 1.64%						7,432,688
Net Assets 100.00%					$	453,588,600

See Notes to Financial Statements.

25

Schedule of Investments (concluded)

December 31, 2009

PIK Payment-in-kind.

* Non-income producing security.

~ Deferred interest debentures pay the stated rate, after which they pay a predetermined interest rate.

^† Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and, unless registered under the Act or exempted from registration, may only be resold to qualified institutional investors. Unless otherwise noted, 144A securities are deemed to be liquid.

^# Variable rate security. The interest rate represents the rate at December 31, 2009.

^(a) Restricted security. The Fund acquired 45,473 shares in a private placement on June 11, 2009 for a cost of $852,619. The fair value price per share on December 31, 2009 is $35.50.

^(b) Restricted security. The Fund acquired 10,651 shares in a private placement on November 30, 2009 for a cost of $219,677. The fair value price per share on December 31, 2009 is $35.50.

^(c) Foreign security traded in U.S. dollars.

^(d) Defaulted security.

^(e) Security is perpetual in nature and has no stated maturity.

See Notes to Financial Statements.

26

Statement of Assets and Liabilities

December 31, 2009

ASSETS:
Investments in securities, at value (cost $427,705,281)	$	446,155,912
Cash		27,673
Receivables:
Interest and dividends		7,267,450
Investment securities sold		1,074,983
Capital shares sold		179,654
From advisor (See Note 3)		54,392
Prepaid expenses and other assets		5,717
Total assets		454,765,781
LIABILITIES:
Payables:
Investment securities purchased		252,219
Management fee		180,177
Capital shares reacquired		167,520
Directors’ fees		30,808
Fund administration		14,446
Accrued expenses and other liabilities		532,011
Total liabilities		1,177,181
NET ASSETS	$	453,588,600
COMPOSITION OF NET ASSETS:
Paid-in capital	$	455,535,163
Distribution in excess of net investment income		(1,631,698	)
Accumulated net realized loss on investments		(18,765,496	)
Net unrealized appreciation on investments		18,450,631
Net Assets	$	453,588,600
Outstanding shares (50 million shares of common stock authorized, $.001 par value)		40,214,559
Net asset value, offering and redemption price per share (Net assets divided by outstanding shares)		$11.28

See Notes to Financial Statements.

27

Statement of Operations

For the Year Ended December 31, 2009

Investment income:
Dividends	$	690,063
Interest and other		27,991,631
Total investment income		28,681,694
Expenses:
Management fee		1,793,661
Shareholder servicing		1,295,654
Fund administration		143,493
Reports to shareholders		141,347
Professional		52,375
Directors’ fees		11,998
Custody		10,933
Other		8,313
Gross expenses		3,457,774
Expense reductions (See Note 7)		(770	)
Management fees waived and expenses reimbursed (See Note 3)		(355,332	)
Net expenses		3,101,672
Net investment income		25,580,022
Net realized and unrealized gain (loss):
Net realized loss on investments		(9,485,075	)
Net change in unrealized appreciation/depreciation on investments		88,578,369
Net realized and unrealized gain		79,093,294
Net Increase in Net Assets Resulting From Operations	$	104,673,316

See Notes to Financial Statements.

28

Statements of Changes in Net Assets

INCREASE (DECREASE) IN NET ASSETS	For the Year Ended December 31, 2009			For the Year Ended December 31, 2008
Operations:
Net investment income	$	25,580,022		$	19,668,838
Net realized loss on investments		(9,485,075	)		(6,591,266	)
Net change in unrealized appreciation/depreciation on investments		88,578,369			(72,485,820	)
Net increase (decrease) in net assets resulting from operations		104,673,316			(59,408,248	)
Distributions to shareholders from:
Net investment income		(26,349,492	)		(21,299,865	)
Net realized gain		–			(809,112	)
Total distributions to shareholders		(26,349,492	)		(22,108,977	)
Capital share transactions (See Note 10):
Proceeds from sales of shares		126,606,135			81,809,354
Reinvestment of distributions		26,349,492			22,108,976
Cost of shares reacquired		(56,547,115	)		(59,170,287	)
Net increase in net assets resulting from capital share transactions		96,408,512			44,748,043
Net increase (decrease) in net assets		174,732,336			(36,769,182	)
NET ASSETS:
Beginning of year	$	278,856,264		$	315,625,446
End of year	$	453,588,600		$	278,856,264
Distribution in excess of net investment income	$	(1,631,698	)	$	(1,390,244	)

See Notes to Financial Statements.

29

Financial Highlights

	Year Ended 12/31
	2009		2008		2007		2006		2005
Per Share Operating Performance
Net asset value, beginning of year	$  8.91		$11.77		$11.84		$11.49		$12.05
Investment operations:
Net investment income(a)	.75		.70		.70		.63		.60
Net realized and unrealized gain (loss)	2.32		(2.79	)	.03		.44		(.44	)
Total from investment operations	3.07		(2.09	)	.73		1.07		.16
Distributions to shareholders from:
Net investment income	(.70	)	(.74	)	(.76	)	(.72	)	(.59	)
Net realized gain	–		(.03	)	(.04	)	–		(.13	)
Total distributions	(.70	)	(.77	)	(.80	)	(.72	)	(.72	)
Net asset value, end of year	$11.28		$  8.91		$11.77		$11.84		$11.49
Total Return(b)	34.31	%	(17.53	)%	6.19	%	9.33	%	1.31	%
Ratios to Average Net Assets:
Expenses, excluding expense reductions, including management fees waived and expenses reimbursed	.86	%	.87	%	.90	%	.91	%	.90	%
Expenses, including expense reductions, management fees waived and expenses reimbursed	.86	%	.87	%	.90	%	.90	%	.90	%
Expenses, excluding expense reductions, management fees waived and expenses reimbursed	.96	%	.94	%	.95	%	.96	%	.94	%
Net investment income	7.11	%	6.32	%	5.67	%	5.31	%	5.00	%
Supplemental Data:
Net assets, end of year (000)	$453,589		$278,856		$315,625		$257,180		$212,277
Portfolio turnover rate	51.76	%	34.22	%	34.04	%	37.88	%	47.33	%

^(a) Calculated using average shares outstanding during the year.

^(b) Total return assumes the reinvestment of all distributions.

See Notes to Financial Statements.

30

Notes to Financial Statements

1.    ORGANIZATION

Lord Abbett Series Fund, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company, incorporated under Maryland law in 1989. The Company consists of eight separate portfolios (the “Funds”). This report covers Bond-Debenture Portfolio (the “Fund”). The Fund is diversified as defined in the Act.

The investment objective of the Fund is to seek high current income and the opportunity for capital appreciation to produce a high total return. The Fund offers Variable Contract class shares (“Class VC Shares”) which are currently issued and redeemed only in connection with investments in, and payments under, variable annuity contracts and variable life insurance policies issued by life insurance and insurance-related companies.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

2.    SIGNIFICANT ACCOUNTING POLICIES

(a) Investment Valuation–Securities actively traded on any recognized U.S. or non-U.S. exchange or on The NASDAQ Stock Market LLC are valued at the last sale price or official closing price on the exchange or system on which they are principally traded. Events occurring after the close of trading on non-U.S. exchanges may result in adjustments to the valuation of foreign securities to more accurately reflect their fair value as of the close of regular trading on the New York Stock Exchange LLC. The Fund may rely on an independent fair valuation service in adjusting the valuations of foreign securities. Unlisted equity securities are valued at the last quoted sale price or, if no sale price is available, at the mean between the most recently quoted bid and asked prices. Fixed income securities are valued at the mean between the bid and asked prices on the basis of prices supplied by independent pricing services, which reflect broker/dealer supplied valuations and the independent pricing services’ own electronic data processing techniques. Securities for which market quotations are not readily available are valued at fair value as determined by management and approved in good faith by the Board of Directors. Short-term securities with 60 days or less remaining to maturity are valued using the amortized cost method, which approximates current market value.

(b) Security Transactions–Security transactions are recorded as of the date that the securities are purchased or sold (trade date). Realized gains and losses on sales of portfolio securities are calculated using the identified-cost method.

(c) Investment Income–Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis as earned. Discounts are accreted and premiums are amortized using the effective interest method. Withholding taxes on foreign dividends have been provided for in accordance with the applicable country’s tax rules and rates.

(d) Income Taxes–It is the policy of the Fund to meet the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all taxable income and capital gains to its shareholders. Therefore, no income tax provision is required.

31

Notes to Financial Statements (continued)

The Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund’s U.S. federal tax returns remains open for the fiscal years ended December 31, 2006 through December 31, 2009. The statutes of limitations on the Company’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

(e) Expenses–Expenses incurred by the Company that do not specifically relate to an individual fund are generally allocated to the Funds within the Company on a pro rata basis by relative net assets.

(f) Repurchase Agreements–The Fund may enter into repurchase agreements with respect to securities. A repurchase agreement is a transaction in which a Fund acquires a security and simultaneously commits to resell that security to the seller (a bank or securities dealer) at an agreed-upon price on an agreed-upon date. The Fund requires at all times that the repurchase agreement be collateralized by cash, or by securities of the U.S. Government, its agencies, its instrumentalities, or U.S. Government sponsored enterprises having a value equal to, or in excess of, the value of the repurchase agreement (including accrued interest). If the seller of the agreement defaults on its obligation to repurchase the underlying securities at a time when the value of these securities has declined, a Fund may incur a loss upon disposition of the securities.

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

(h) Fair Value Measurements–In accordance with Financial Accounting Standards Board (“FASB”), Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures (formerly SFAS 157), fair value is defined as the price that the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. ASC 820 established a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk – for example, the risk inherent in a particular valuation technique used to measure fair value (such as a pricing model) and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability.

32

Notes to Financial Statements (continued)

Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below:

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

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.); and

• Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of December 31, 2009 in valuing the Fund’s investments carried at value:

Investment Type*	Level 1		Level 2		Level 3		Total
Common Stocks	$	1,032,600	$	1,614,292	$	–	$	2,646,892
Convertible Bonds		–		53,272,835		–		53,272,835
Convertible Preferred Stocks		7,026,822		4,522,738		–		11,549,560
Government Sponsored Enterprises Bond		–		5,193,210		–		5,193,210
High Yield Corporate Bonds		–		358,009,969		–		358,009,969
Non-Convertible Preferred Stock		22,550		–		–		22,550
Warrant		–		20,700		–		20,700
Repurchase Agreement		–		15,440,196		–		15,440,196
Total	$	8,081,972	$	438,073,940	$	–	$	446,155,912

* See Schedule of Investments for values in each industry.

3.    MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Management Fee

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

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

First $1 billion	.50%
Over $1 billion	.45%

For the fiscal year ended December 31, 2009, the effective management fee, before waivers and expenses reimbursed, was at an annualized rate of .50% of the Fund’s average daily net assets.

Lord Abbett provides certain administrative services to the Fund pursuant to an Administrative Services Agreement at an annual rate of .04% of the Fund’s average daily net assets.

33

Notes to Financial Statements (continued)

For the period January 1, 2009 through April 30, 2009, Lord Abbett contractually agreed to reimburse the Fund to the extent necessary so that total annual operating expenses (excluding management fee) did not exceed an annual rate of .35% of average daily net assets.

For the period May 1, 2009 through December 30, 2009, Lord Abbett voluntarily agreed to waive a portion of its management fee and, if necessary, reimburse the Fund to the extent necessary so that total annual operating expenses do not exceed an annual rate of .87% of average daily net assets.

Effective December 31, 2009, Lord Abbett voluntarily agreed to waive a portion of its management fee and, if necessary, reimburse the Fund to the extent necessary so that total annual operating expenses do not exceed an annual rate of .90% of average daily net assets.

Lord Abbett may stop or change the level of the voluntary waiver or reimbursement at any time.

The Company, on behalf of the Fund, has entered into services arrangements with certain insurance companies. 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 the insurance company’s separate account to service and maintain the Variable Contract owners’ accounts. The Fund may also compensate certain insurance companies, third-party administrators and other entities for providing recordkeeping, sub-transfer agency and other administrative services to the Fund. For the fiscal year ended December 31, 2009, the Fund incurred expenses of $1,255,563 for such services arrangements, which have been included in Shareholder servicing expense on the Statement of Operations.

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

The tax character of distributions paid during the fiscal years ended December 31, 2009 and 2008 was as follows:

	Year Ended 12/31/2009		Year Ended 12/31/2008
Distributions paid from:
Ordinary income	$	26,349,492	$	21,300,411
Net long-term capital gains		–		808,566
Total distributions paid	$	26,349,492	$	22,108,977

34

Notes to Financial Statements (continued)

As of December 31, 2009, the components of accumulated losses on a tax-basis were as follows:

Undistributed ordinary income – net	$	322,360
Total undistributed earnings	$	322,360
Capital loss carryforwards*		(16,319,930	)
Temporary differences		(1,563,140	)
Unrealized gains – net		15,614,147
Total accumulated losses – net	$	(1,946,563	)

* As of December 31, 2009, the capital loss carryforwards, along with the related expiration dates, were as follows:

2016	2017		Total
$3,015,546	$	13,304,384	$	16,319,930

Certain losses incurred after October 31 (“Post-October losses”) within the taxable year are deemed to arise on the first business day of the Fund’s next taxable year. The Fund incurred and will elect to defer net capital losses of $1,532,332 during fiscal 2009.

As of December 31, 2009, the aggregate unrealized security gains and losses based on cost for U.S. federal income tax purposes were as follows:

Tax cost	$	430,541,765
Gross unrealized gain		27,698,601
Gross unrealized loss		(12,084,454	)
Net unrealized security gain	$	15,614,147

The difference between book-basis and tax-basis unrealized gains (losses) is attributable to the tax treatment of certain securities and premium amortization.

Permanent items identified during the fiscal year ended December 31, 2009 have been reclassified among the components of net assets based on their tax basis treatment as follows:

Distributions in Excess of Net Investment Income	Accumulated Net Realized Loss
$528,016	$	(528,016	)

The permanent differences are attributable to the tax treatment of premium amortization, certain securities, and paydown gains and losses.

5.    PORTFOLIO SECURITIES TRANSACTIONS

Purchases and sales of investment securities (excluding short-term investments) for the fiscal year ended December 31, 2009 were as follows:

U.S. Government Purchases*	Non-U.S. Government Purchases		U.S. Government Sales*		Non-U.S. Government Sales
$43,070,911	$	219,113,919	$	83,478,471	$	97,789,757

* Includes U.S. Government sponsored enterprises securities.

35

Notes to Financial Statements (continued)

6.    DIRECTORS’ REMUNERATION

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

7.    EXPENSE REDUCTIONS

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

8.    CUSTODIAN AND ACCOUNTING AGENT

State Street Bank and Trust Company (“SSB”) is the Company’s custodian and accounting agent. SSB performs custodial, accounting and recordkeeping functions relating to portfolio transactions and calculating the Fund’s NAV.

9.    INVESTMENT RISKS

The Fund is subject to the general risks and considerations associated with investing in debt securities. The value of an investment will change as interest rates fluctuate and in response to market movements. When interest rates rise, the prices of debt securities are likely to decline; when rates fall, such prices tend to rise. Longer-term debt securities are usually more sensitive to interest rate changes. There is also the risk that an issuer of a debt security will fail to make timely payments of principal or interest to the Fund, a risk that is greater with high-yield securities (sometimes called “lower-rated bonds” or “junk bonds”) in which the Fund may invest. Some issuers, particularly of high yield securities, may default as to principal and/or interest payments after the Fund purchases its securities. A default, or concerns in the market about an increase in risk of default, may result in losses to the Fund. High yield securities are subject to greater price fluctuations, as well as additional risks.

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

36

Notes to Financial Statements (concluded)

The Fund may invest up to 20% of its net assets in equity securities which may subject it to the general risks and considerations associated with investing in equity securities. The value of an investment will fluctuate in response to movements in the equity securities market in general and to the changing prospects of individual companies in which the Fund invests.

The Fund may invest up to 20% of its net assets in foreign securities, which may present market, liquidity, currency, political, information and other risks.

These factors can affect the Fund’s performance.

10. SUMMARY OF CAPITAL TRANSACTIONS

Transactions in shares of capital stock were as follows:

	Year Ended December 31, 2009		Year Ended December 31, 2008
Shares sold	12,136,685		7,383,249
Reinvestment of distributions	2,340,097		2,547,117
Shares reacquired	(5,560,333	)	(5,456,997	)
Increase	8,916,449		4,473,369

11.    SUBSEQUENT EVENTS

In accordance with the provisions set forth in ASC Topic 855 (formerly SFAS 165), Subsequent Events, adopted by the Fund as of December 31, 2009, management has evaluated subsequent events existing in the Fund’s financial statements through February 16, 2010. Management has determined that there were no material subsequent events that would require recognition or additional disclosure in the Fund’s financial statements through this date.

12.    RECENT ACCOUNTING PRONOUNCEMENTS

In January 2010, the FASB issued Accounting Standards Update 2010-06 “Improving Disclosures about Fair Value Measurements” (“ASU 2010-06”). ASU 2010-06 provides clarifications to existing disclosures required by ASC 820 as well as amends ASC 820 to require certain new disclosures. ASU 2010-06 is substantially effective for interim and annual reporting periods beginning after December 15, 2009. Management is currently evaluating the impact the adoption of ASU 2010-06 will have on the Fund’s financial statement disclosures.

37

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of Lord Abbett Series Fund, Inc.:

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the Bond-Debenture Portfolio, one of the portfolios constituting the Lord Abbett Series Fund, Inc. (the “Company”), as of December 31, 2009, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2009, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Bond-Debenture Portfolio of the Lord Abbett Series Fund, Inc. as of December 31, 2009, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

DELOITTE & TOUCHE LLP

New York, New York

February 16, 2010

38

Basic Information About Management

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

Lord, Abbett & Co. LLC (“Lord Abbett”), a Delaware limited liability company, is the Company’s investment adviser.

Interested Directors

The following Directors are partners of Lord Abbett and are “interested persons” of the Company as defined in the Act. Mr. Dow and Ms. Foster are officers, directors, or trustees of each of the 14 Lord Abbett-sponsored funds, which consist of 53 portfolios or series.

Name, Address and Year of Birth	Current Position and Length of Service with Company	Principal Occupation During Past Five Years	Other Directorships
Robert S. Dow Lord, Abbett & Co. LLC 90 Hudson Street Jersey City, NJ 07302 (1945)	Director since 1995, Chairman since 1996	Senior Partner (since 2007), Chief Executive Officer (since 1996) and was formerly Managing Partner (1996 - 2007), joined Lord Abbett in 1972.	N/A
Daria L. Foster Lord, Abbett & Co. LLC 90 Hudson Street Jersey City, NJ 07302 (1954)	Director since 2006	Managing Partner (since 2007) and was formerly Director of Marketing and Client Service, joined Lord Abbett in 1990.	N/A

Independent Directors

The following independent or outside Directors (“Independent Directors”) are also directors or trustees of each of the 14 Lord Abbett-sponsored funds, which consist of 53 portfolios or series.

Name, Address and Year of Birth	Current Position and Length of Service with Company	Principal Occupation During Past Five Years	Other Directorships
E. Thayer Bigelow Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1941)	Director since 1994	Managing General Partner, Bigelow Media, LLC (since 2000); Senior Adviser, Time Warner Inc. (1998 - 2000).	Currently serves as director of Crane Co. (since 1984), Huttig Building Products Inc. (since 1998) and R.H. Donnelley Inc. (since 2009).
William H.T. Bush Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1938)	Director since 1998	Co-founder and Chairman of the Board of the financial advisory firm of Bush-O’Donnell & Company (since 1986).	Currently serves as director of WellPoint, Inc., a health benefits company (since 2002).

39

Basic Information About Management (continued)

Name, Address and Year of Birth	Current Position and Length of Service with Company	Principal Occupation During Past Five Years	Other Directorships
Robert B. Calhoun, Jr. Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1942)	Director since 1998	Senior Advisor of Monitor Clipper Partners, a private equity investment fund (since 1997); President of Clipper Asset Management Corp. (1991 - 2009).	N/A
Julie A. Hill Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1946)	Director since 2004	Owner and CEO of The Hill Company, a business consulting firm (since 1998).	Currently serves as director of WellPoint, Inc., a health benefits company (since 1994) and Lend Lease Corporation Limited (since 2005).
Franklin W. Hobbs Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1947)	Director since 2001	Advisor of One Equity Partners, a private equity firm (since 2004).	Currently serves as a director and Chairman of the Board of GMAC Inc., a financial services firm (since 2009) and as a director of Molson Coors Brewing Company (since 2002).
Thomas J. Neff Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1937)	Director since 1989	Chairman of Spencer Stuart (U.S.), an executive search consulting firm (since 1996).	Currently serves as director of Ace, Ltd. (since 1997) and Hewitt Associates, Inc. (since 2004).
James L.L. Tullis Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1947)	Director since 2006	CEO of Tullis-Dickerson and Co. Inc., a venture capital management firm (since 1990).	Currently serves as director of Crane Co. (since 1998).

Officers

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

Name and Year of Birth	Current Position with Company	Length of Service of Current Position	Principal Occupation During Past Five Years
Robert S. Dow (1945)	Chief Executive Officer and Chairman	Elected in 1996	Senior Partner (since 2007), Chief Executive Officer (since 1996) and was formerly Managing Partner (1996 - 2007), joined Lord Abbett in 1972.

40

Basic Information About Management (continued)

Name and Year of Birth	Current Position with Company	Length of Service of Current Position	Principal Occupation During Past Five Years
Daria L. Foster (1954)	President	Elected in 2006	Managing Partner (since 2007) and was formerly Director of Marketing and Client Service, joined Lord Abbett in 1990.
Robert P. Fetch (1953)	Executive Vice President	Elected in 2003	Partner and Director, joined Lord Abbett in 1995.
Daniel H. Frascarelli (1954)	Executive Vice President	Elected in 2003	Partner and Director, joined Lord Abbett in 1990.
Robert I. Gerber (1954)	Executive Vice President	Elected in 2003	Partner and Chief Investment Officer (since 2007), joined Lord Abbett in 1997 as Director of Taxable Fixed Income Management.
Todd D. Jacobson (1966)	Executive Vice President	Elected in 1999	Portfolio Manager, joined Lord Abbett in 2003.
Eli M. Salzmann (1964)	Executive Vice President	Elected in 2006	Partner and Director, joined Lord Abbett in 1997.
Christopher J. Towle (1957)	Executive Vice President	Elected in 1999	Partner and Director, joined Lord Abbett in 1987.
Paul J. Volovich (1973)	Executive Vice President	Elected in 2005	Partner and Director, joined Lord Abbett in 1997.
James W. Bernaiche (1956)	Chief Compliance Officer	Elected in 2004	Partner and Chief Compliance Officer, joined Lord Abbett in 2001.
Joan A. Binstock (1954)	Chief Financial Officer and Vice President	Elected in 1999	Partner and Chief Operations Officer, joined Lord Abbett in 1999.
Jeff Diamond (1960)	Vice President	Elected in 2008	Portfolio Manager, joined Lord Abbett in 2007 and was formerly a Managing Director at Axia Capital Management LLC (2004 –2006).
John K. Forst (1960)	Vice President and Assistant Secretary	Elected in 2005	Deputy General Counsel, joined Lord Abbett in 2004.
Michael S. Goldstein (1968)	Vice President	Elected in 1999	Partner and Portfolio Manager, joined Lord Abbett in 1997.

41

Basic Information About Management (continued)

Name and Year of Birth	Current Position with Company	Length of Service of Current Position	Principal Occupation During Past Five Years
Lawrence H. Kaplan (1957)	Vice President and Secretary	Elected in 1997	Partner and General Counsel, joined Lord Abbett in 1997.
Deepak Khanna (1963)	Vice President	Elected in 2008	Portfolio Manager, rejoined Lord Abbett in 2007 from Jennison Associates LLC (2005 - 2007). Mr. Khanna’s former experience at Lord Abbett included Senior Research Analyst – other investment strategies (2000 - 2005).
David J. Linsen (1974)	Vice President	Elected in 2008	Director and Portfolio Manager, joined Lord Abbett in 2001.
Elizabeth O. MacLean (1966)	Vice President	Elected in 2008	Partner and Portfolio Manager, joined Lord Abbett in 2006 and was formerly a Managing Director/Portfolio Manager at Nomura Corporate Research and Asset Management, Inc. (2000 - 2006).
A. Edward Oberhaus, III (1959)	Vice President	Elected in 1998	Partner and Director, joined Lord Abbett in 1983.
Todor Petrov (1974)	Vice President	Elected in 2008	Portfolio Manager, joined Lord Abbett in 2003.
Thomas R. Phillips (1960)	Vice President and Assistant Secretary	Elected in 2008	Deputy General Counsel, joined Lord Abbett in 2006 and was formerly an attorney at Morgan, Lewis & Bockius LLP.
Randy M. Reynolds (1972)	Vice President	Elected in 2008	Portfolio Manager, joined Lord Abbett in 1999.
Lawrence D. Sachs (1963)	Vice President	Elected in 2010	Partner and Portfolio Manager, joined Lord Abbett in 2001.
Lawrence B. Stoller (1963)	Vice President and Assistant Secretary	Elected in 2007	Senior Deputy General Counsel, joined Lord Abbett in 2007 and was formerly an Executive Vice President and General Counsel at Cohen & Steers Capital Management, Inc. (1999 - 2007).

42

Basic Information About Management (concluded)

Name and Year of Birth	Current Position with Company	Length of Service of Current Position	Principal Occupation During Past Five Years
Bernard J. Grzelak (1971)	Treasurer	Elected in 2003	Partner and Director of Fund Administration, joined Lord Abbett in 2003.

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

43

Approval of Advisory Contract

At meetings held on December 16 and 17, 2009, the Board, including all of the Directors who are not interested persons of the Fund or Lord, Abbett & Co. LLC. (“Lord Abbett”), considered whether to approve the continuation of the existing management agreement between the Fund and Lord Abbett. In addition to the materials the Board had reviewed throughout the course of the year, the Board received materials relating to the management agreement before the meeting and had the opportunity to ask questions and request further information in connection with its consideration. The Board also took into account its familiarity with Lord Abbett gained through its previous meetings and discussions, and the examination of the portfolio management team conducted by members of the Contract Committee during the year.

The materials received by the Board included, but were not limited to, (1) information provided by Lipper Inc. regarding the investment performance of the Fund compared to the investment performance of one or more groups of funds with substantially similar investment objectives (the “performance universe”) and to the investment performance of an appropriate securities index, (2) information on the expense ratios, effective management fee rates, and other expense components, for the Fund and one or more groups of funds with similar objectives and of similar size (the “peer group”), (3) sales and redemption information for the Fund, (4) information regarding Lord Abbett’s financial condition, (5) an analysis of the relative profitability of the management agreement to Lord Abbett, (6) information regarding the distribution arrangements of the Fund, and (7) information regarding the personnel and other resources devoted by Lord Abbett to managing the Fund.

Investment Management Services Generally. The Board considered the investment management services provided by Lord Abbett to the Fund, including investment research, portfolio management, and trading, and Lord Abbett’s commitment to compliance with all relevant legal requirements. The Board also observed that Lord Abbett was solely engaged in the investment management business and accordingly did not experience the conflicts of interest resulting from being engaged in other lines of business. The Board noted that in recent years Lord Abbett had not used brokerage commissions to purchase third-party research, but had changed this practice in 2009, as it had previously discussed with the Board. The Board considered the investment advisory services provided by Lord Abbett to other clients, the fees charged for the services, and the differences in the nature of the services provided to the Fund and other Lord Abbett Funds, on the one hand, and the services provided to other clients, on the other.

Investment Performance and Compliance. The Board reviewed the Fund’s investment performance in relation to that of the performance universe, both in terms of total return and in terms of other statistical measures. The Board observed that the Fund’s investment performance was in the fifth quintile of its performance universe for the nine-month period, in the second quintile for the one-year and five-year periods, and in the first quintile for the three-year period. The Board also observed that the investment performance of the Fund was lower than that of the Lipper Variable Underlying Funds High Yield Index for the nine-month period and higher than that of the Index for the one-year, three-year, and five-year periods. The Board also noted that the Fund’s investment objective, strategy, and investment team were identical to those of Lord Abbett Bond-Debenture Fund, Inc. (Bond-Debenture Fund) and observed that the performance of the Class A shares of Bond-Debenture Fund was in the fourth quintile of its performance universe and lower than that of the relevant Lipper index for the ten-year period.

44

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

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

Expenses. The Board considered the expense levels of the Fund and the expense levels of the peer group. The Board considered the fiscal periods on which the peer group information was based, and noted that such periods ended before September 30, 2009. The Board noted that the expense levels of the peer group likely would have been different for periods ending September 30, 2009, due to the lower asset levels prevailing in the mutual fund industry during much of 2009. The Board also observed that the Fund’s transfer agency expenses were likely to decrease in 2010, as a result of renegotiation of the transfer agency agreement. It also considered the amount and nature of the fees paid by shareholders. The Board noted that it and Lord Abbett had agreed to an expense reimbursement agreement through April 30, 2009 that limited all expenses other than management fees to 0.35%, but that Lord Abbett had not entered into a new expense reimbursement agreement and instead had made voluntary reimbursements that had the effect of keeping the total expense ratio at approximately 0.87%, and intended to continue to make reimbursements that would keep the expense ratio at approximately 0.90%, which reimbursements it could end at any time. The Board observed that for the nine months ended September 30, 2009 (annualized) the contractual management and administrative services fee rates were approximately eleven basis points below the median of the peer group and the actual management and administrative services fee rates were approximately eight basis points below the median of the peer group. The Board observed that for the nine months ended September 30, 2009 (annualized) the total expense ratio of the Fund was approximately thirteen basis points below the median of the peer group. The Board also considered that Lord Abbett voluntarily intended to waive its management fee and/or administrative service fee and/or voluntarily reimburse expenses to maintain the expense ratio described above, and considered what the Fund’s expense ratio likely would be if Lord Abbett did not voluntarily waive its fees or reimburse any expenses and how that expense ratio would compare to that of the peer group.

Profitability. The Board considered the level of Lord Abbett’s profits in managing the Fund, including a review of Lord Abbett’s methodology for allocating its costs to its management of the Fund. The Board concluded that the allocation methodology had a reasonable basis and was appropriate. It considered any profits realized by Lord Abbett in connection with the operation of the Fund and whether the amount of profit was fair for the management of the Fund. The Board also considered the profits realized from other businesses of Lord Abbett, which may benefit from or be related to the Fund’s business. The Board considered Lord Abbett’s profit margins in comparison with available industry data, both accounting for and ignoring marketing and distribution expenses, and how those profit margins could affect Lord Abbett’s ability to recruit and retain investment personnel. The Board recognized that Lord Abbett’s profitability was a factor in enabling it to attract and retain qualified investment management personnel to provide services to

45

the Fund. The Board noted that Lord Abbett’s overall profitability had decreased in its 2009 fiscal year, largely due to declines in market prices and shareholder redemptions. The Board concluded that Lord Abbett’s profitability overall and as to the Fund was not excessive.

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

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

Alternative Arrangements. The Board considered whether, instead of approving continuation of the management agreement, it might be in the best interests of the Fund to implement one or more alternative arrangements, such as continuing to employ Lord Abbett, but on different terms.

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

46

Householding

The 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 need additional copies or do not want your mailings to be “householded,” please call Lord Abbett at 888-522-2388 or send a written request with your name, the name of your fund or funds and your account number or numbers to Lord Abbett Family of Funds, P.O. Box 219336, Kansas City, MO 64121.

Proxy Voting Policies, Procedures and Records

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

Shareholder Reports and Quarterly Portfolio Disclosure

The Fund is required to file its complete schedule of portfolio holdings with the SEC for its first and third fiscal quarters on Form N-Q. Copies of the filings are available without charge, upon request on the SEC’s Website at www.sec.gov and may be available by calling Lord Abbett at 888-522-2388. You can also obtain copies of Form N-Q by (i) visiting the SEC’s Public Reference Room in Washington, DC (information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330); (ii) sending your request and duplicating fee to the SEC’s Public Reference Section, Washington, DC 20549-1520; or (iii) sending your request electronically, after paying a duplicating fee, to publicinfo@sec.gov.

Tax Information

For corporate shareholders, 1.80% of ordinary income distribution paid by the Fund during the fiscal year ended December 31, 2009 qualified for the dividends received deduction.

47

This report, when not used for the general information of shareholders of the Fund, is to be distributed only if preceded or accompanied by a current fund prospectus.

Lord Abbett mutual fund shares are distributed by LORD ABBETT DISTRIBUTOR LLC.

Lord Abbett Series Fund, Inc.

Bond-Debenture Portfolio

LASFBD-2-1209

(02/10)

2009

LORD ABBETT

ANNUAL

REPORT    

Lord Abbett

Series Fund—Growth and

Income Portfolio

For the fiscal year ended December 31, 2009

Lord Abbett Series Fund — Growth and Income Portfolio

Annual Report

For the fiscal year ended December 31, 2009

From left to right: Robert S. Dow, Director and Chairman of the Lord Abbett Funds; E. Thayer Bigelow, Independent Lead Director of the Lord Abbett Funds; and Daria L. Foster, Director and President of the Lord Abbett Funds.

Dear Shareholders: We are pleased to provide you with this overview of the Lord Abbett Series Fund — Growth and Income Portfolio’s performance for the fiscal year ended December 31, 2009. On this page and the following pages, we discuss the major factors that influenced performance. For detailed and more timely information about the Fund, please visit our Website at www.lordabbett.com, where you also can access the quarterly commentaries by the Fund’s portfolio manager.

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

Best regards,

Robert S. Dow

Chairman

Q: What were the overall market conditions during the fiscal year ended December 31, 2009?

A: After a difficult start to the year, the equity markets (as represented by the S&P 500^® Index¹) recovered during the balance of the period, ending the year up 26.46%. This improvement enabled some investors to recover a portion of their previous losses.

Overall, most equity asset classes and investing styles trended higher throughout the period. Mid cap stocks (as defined by the Russell MidCap^® Index²) generally outperformed large cap stocks (as measured by the Russell 1000^® Index³) and small cap stocks (as measured by the Russell 2000^® Index⁴). Growth stocks (as represented by the Russell 3000^® Growth Index⁵) generally outperformed value stocks (as represented by the Russell 3000^® Value Index ⁶) for the fiscal year.

Q: How did the Growth and Income Portfolio perform during the fiscal year ended December 31, 2009?

A: The Fund returned 18.90%, reflecting performance at the net asset value (NAV) of Class VC shares, with all distributions reinvested, compared to its benchmark, the

1

Russell 1000 Value^® Index,⁷ which had a total return of 19.69% over the same period.

Q: What were the most significant factors affecting performance?

A: The most significant detractors from the Fund’s performance relative to its benchmark for the 12-month period were the financial services sector (owing to an overweight position) and the producer durables sector (owing to an underweight position).

Among the individual holdings that detracted from performance were financial services holdings Bank of America Corp. (the Fund’s number-one detractor), a provider of banking, investing, asset management, and other financial and risk-management products and services, and Fifth Third Bancorp, a diversified financial services company; and producer durables holding General Electric, a diversified technology, media and financial services company.

The most significant contributors to the Fund’s performance relative to its benchmark for the 12-month period were the consumer discretionary sector (owing to an overweight position and strong stock selection) and the energy sector (owing to strong stock selection).

Among the individual holdings that contributed to performance were consumer discretionary holdings Hertz Global Holdings, Inc. (the Fund’s number-one contributor), an operator of car and equipment rental centers, and J. Crew Group, Inc., a retailer of apparel, shoes, and accessories; and consumer staples holding Coca-Cola Enterprises, Inc., a supplier of non-alcoholic beverages.

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

¹  The S&P 500^® Index is widely regarded as the standard for measuring large cap U.S. stock market performance and includes a representative sample of leading companies in leading industries.

²  The Russell Midcap^® Index measures the performance of the 800 smallest companies in the Russell 1000 Index, which represents approximately 25% of the total market capitalization of the Russell 1000 Index.

³  The Russell 1000^® Index measures the performance of the 1,000 largest companies in the Russell 3000 Index, which represents approximately 92% of the total market capitalization of the Russell 3000 Index.

⁴  The Russell 2000^® Index is composed of 2,000 securities with market values ranging from $25 million to $275 million. The Growth Index is comprised of securities in the Russell 2000^® Index with higher price-to-book ratios and higher forecasted growth.

⁵  The Russell 3000^® Growth Index measures the performance of those Russell 3000^® Index companies with higher price-to-book ratios and higher forecasted growth values. The stocks in this index are also members of either the Russell 1000^® Growth or the Russell 2000^® Growth indexes.

⁶  The Russell 3000^® Value Index measures the performance of those Russell 3000 Index companies with lower price-to-book ratios and lower forecasted growth values. The stocks in this index are also members of either the Russell 1000^® Value or the Russell 2000^® Value indexes.

⁷  The Russell 1000^® Value Index measures the performance of the large-cap value segment of the U.S. equity market. It includes those Russell 1000 companies with lower price-to-book ratios and lower expected growth values.

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

2

Important Performance and Other Information

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 www.lordabbett.com.

The views of the Fund’s management and the portfolio holdings described in this report are as of December 31, 2009; these views and portfolio holdings may have changed subsequent to this date, and they do not guarantee the future performance of the markets or the Fund. Information provided in this report should not be considered a recommendation to purchase or sell securities.

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

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

The Fund serves as an underlying investment vehicle for variable annuity contracts and variable life insurance policies.

3

Investment Comparison

Below is a comparison of a $10,000 investment in Class VC shares with the same investment in the Russell 1000^® Value Index, the S&P 500^® Index and the S&P 500 Value Index, assuming reinvestment of all dividends and distributions. The Fund’s shares are sold only to insurance company separate accounts that fund certain variable annuity and variable life contracts. This line graph comparison does not reflect the sales charges or other expenses of these contracts. If those sales charges and expenses were reflected, returns would be less. The graph and performance table below do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Past performance is no guarantee of future results.

Average Annual Total Returns for the

Periods Ended December 31, 2009

	1 Year	5 Years	10 Years
Class VC	18.90%	-1.09%	2.15%

¹    Performance for each unmanaged index does not reflect transaction costs, management fees or sales charges. The performance of each index is not necessarily representative of the Fund’s performance.

4

Expense Example

As 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 ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2009 through December 31, 2009).

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 products that invest in the Fund, are not reflected in this Example. If such fees and expenses were reflected in the Example, the total expenses shown would be higher. Fees and expenses regarding such variable insurance products are separately described in the prospectus related to those products.

Actual Expenses

The first line of the table on the following page provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading titled “Expenses Paid During the Period 7/1/09 – 12/31/09” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

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

5

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

	Beginning Account Value		Ending Account Value		Expenses Paid During the Period†
	7/1/09		12/31/09		7/1/09 - 12/31/09
Class VC
Actual	$	1,000.00	$	1,196.60	$	5.15
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.55	$	4.74

^† Net expenses are equal to the Fund’s annualized expense ratio of 0.93%, multiplied by the average account value over the period, multiplied by 184/365 (to reflect one-half year period).

Portfolio Holdings Presented by Sector

December 31, 2009

Sector*	%**
Consumer Discretionary	15.08%
Consumer Staples	4.82%
Energy	18.02%
Financial Services	27.42%
Healthcare	8.89%
Materials & Processing	6.29%
Producer Durables	7.64%
Technology	2.86%
Utilities	3.61%
Short-Term Investment	5.37%
Total	100.00%

* A sector may comprise several industries.

** Represents percent of total investments.

6

Schedule of Investments

December 31, 2009

Investments	Shares	Value (000)
LONG-TERM INVESTMENTS 95.21%
COMMON STOCKS 94.97%
Advertising Agencies 0.38%
Omnicom Group, Inc.	108,500	$	4,248
Aerospace 0.27%
Raytheon Co.	58,100		2,993
Air Transportation 3.30%
Delta Air Lines, Inc.*	2,977,047		33,879
FedEx Corp.	32,100		2,679
Total			36,558
Asset Management & Custodian 1.71%
Franklin Resources, Inc.	112,493		11,851
Legg Mason, Inc.	44,300		1,336
State Street Corp.	132,600		5,774
Total			18,961
Automobiles 1.58%
Ford Motor Co.*	1,751,600		17,516
Banks: Diversified 12.67%
Bank of America Corp.	1,399,593		21,078
BB&T Corp.	196,717		4,991
KeyCorp	945,300		5,246
M&T Bank Corp.	117,079		7,831
PNC Financial Services Group, Inc. (The)	393,946		20,796
Regions Financial Corp.	541,500		2,865
SunTrust Banks, Inc.	972,000		19,722
Wells Fargo & Co.	1,810,901		48,876
Zions Bancorp	692,430		8,884
Total			140,289
Biotechnology 1.14%
Amgen, Inc.*	222,696		12,598
Building Materials 0.06%
Masco Corp.	50,106		692

Investments	Shares	Value (000)
Cable Television Services 1.23%
Comcast Corp. Class A	515,302	$	8,688
Time Warner Cable, Inc.	117,751		4,874
Total			13,562
Chemical: Diversified 1.08%
Dow Chemical Co. (The)	430,300		11,889
Chemical: Specialty 0.36%
Praxair, Inc.	49,802		4,000
Coal 0.46%
Arch Coal, Inc.	227,700		5,066
Communications Technology 0.51%
Cisco Systems, Inc.*	237,600		5,688
Computer Services, Software & Systems 0.43%
Adobe Systems, Inc.*	129,200		4,752
Computer Technology 1.36%
EMC Corp.*	263,100		4,596
Hewlett-Packard Co.	202,885		10,451
Total			15,047
Diversified Financial Services 11.52%
Bank of New York Mellon Corp. (The)	834,748		23,348
Capital One Financial Corp.	26,300		1,008
Citigroup, Inc.	3,087,100		10,218
Goldman Sachs Group, Inc. (The)	166,072		28,039
JPMorgan Chase & Co.	1,129,138		47,051
Morgan Stanley	602,800		17,843
Total			127,507
Diversified Manufacturing Operations 2.36%
Eaton Corp.	337,072		21,445
Honeywell International, Inc.	119,500		4,684
Total			26,129

See Notes to Financial Statements.

7

Schedule of Investments (continued)

December 31, 2009

Investments	Shares	Value (000)
Diversified Media 0.42%
Time Warner, Inc.	159,366	$	4,644
Diversified Retail 4.50%
HSN, Inc.*	554,309		11,191
J.C. Penney Co., Inc.	206,200		5,487
Kohl’s Corp.*	155,100		8,365
Target Corp.	450,600		21,796
Wal-Mart Stores, Inc.	56,392		3,014
Total			49,853
Drug & Grocery Store Chains 2.21%
Kroger Co. (The)	1,193,453		24,502
Entertainment 0.33%
Viacom, Inc. Class B*	123,300		3,666
Fertilizers 1.22%
Mosaic Co. (The)	185,500		11,080
Potash Corp. of Saskatchewan, Inc. (Canada)(a)	22,300		2,419
Total			13,499
Foods 0.70%
Kraft Foods, Inc. Class A	286,297		7,782
Fruit & Grain Processing 1.66%
Archer Daniels Midland Co.	586,300		18,357
Gas Pipeline 0.88%
El Paso Corp.	990,770		9,739
Gold 2.10%
Barrick Gold Corp. (Canada)(a)	413,300		16,276
Newmont Mining Corp.	146,300		6,921
Total			23,197
Healthcare Management Services 1.57%
UnitedHealth Group, Inc.	570,100		17,377

Investments	Shares	Value (000)
Homebuilding 0.54%
Pulte Homes, Inc.*	601,800	$	6,018
Hotel/Motel 1.96%
Hyatt Hotels Corp. Class A*	266,100		7,933
Marriott International, Inc. Class A	394,874		10,760
Starwood Hotels & Resorts Worldwide, Inc.	83,000		3,035
Total			21,728
Insurance: Life 0.20%
Principal Financial Group, Inc.	93,800		2,255
Insurance: Multi-Line 0.73%
MetLife, Inc.	226,761		8,016
Leisure Time 0.70%
Carnival Corp. Unit*	242,650		7,689
Machinery: Construction & Handling 1.06%
Caterpillar, Inc.	204,900		11,677
Machinery: Industrial 0.13%
Joy Global, Inc.	28,700		1,481
Medical & Dental Instruments & Supplies 1.96%
Boston Scientific Corp.*	1,126,898		10,142
Covidien plc (Ireland)(a)	241,671		11,574
Total			21,716
Metals & Minerals: Diversified 0.95%
Agnico-Eagle Mines Ltd. (Canada)(a)	60,900		3,289
Cliffs Natural Resources, Inc.	157,400		7,254
Total			10,543
Oil: Crude Producers 3.68%
Apache Corp.	23,000		2,373
Devon Energy Corp.	102,400		7,526

See Notes to Financial Statements.

8

Schedule of Investments (continued)

December 31, 2009

Investments	Shares	Value (000)
Oil: Crude Producers (continued)
EOG Resources, Inc.	76,064	$	7,401
Occidental Petroleum Corp.	128,378		10,444
Southwestern Energy Co.*	25,800		1,244
XTO Energy, Inc.	253,175		11,780
Total			40,768
Oil: Integrated 8.36%
Chevron Corp.	384,725		29,620
ConocoPhillips	129,200		6,598
Exxon Mobil Corp.	241,655		16,478
Hess Corp.	111,400		6,740
Marathon Oil Corp.	371,000		11,583
Murphy Oil Corp.	71,800		3,891
Petroleo Brasileiro SA ADR	172,500		8,225
Suncor Energy, Inc. (Canada)(a)	267,221		9,436
Total			92,571
Oil Well Equipment & Services 4.75%
Halliburton Co.	539,900		16,246
Schlumberger Ltd.	462,592		30,110
Smith International, Inc.	229,500		6,235
Total			52,591
Personal Care 0.27%
Colgate-Palmolive Co.	35,800		2,941
Pharmaceuticals 4.27%
Abbott Laboratories	275,164		14,856
Johnson & Johnson	125,700		8,096
Merck & Co., Inc.	230,000		8,404
Teva Pharmaceutical Industries Ltd. ADR	283,567		15,931
Total			47,287
Real Estate Investment Trusts 0.12%
Annaly Capital Management, Inc.	74,600		1,294

Investments	Shares	Value (000)
Rental & Leasing Services: Consumer 2.23%
Hertz Global Holdings, Inc.*	2,068,547	$	24,657
Scientific Instruments: Electrical 0.57%
Emerson Electric Co.	147,400		6,279
Securities Brokerage & Services 0.41%
Charles Schwab Corp. (The)	238,300		4,485
Semiconductors & Components 0.58%
Intel Corp.	313,000		6,385
Specialty Retail 0.59%
Best Buy Co., Inc.	80,416		3,173
Home Depot, Inc. (The)	114,300		3,307
Total			6,480
Steel 0.56%
United States Steel Corp.	113,200		6,240
Textiles Apparel & Shoes 0.71%
J. Crew Group, Inc.*	162,529		7,272
NIKE, Inc. Class B	9,300		614
Total			7,886
Utilities: Electrical 0.80%
PG&E Corp.	151,500		6,765
Southern Co.	63,695		2,122
Total			8,887
Utilities: Telecommunications 2.83%
AT&T, Inc.	736,947		20,657
Verizon Communications, Inc.	322,700		10,691
Total			31,348
Total Common Stocks (cost $917,408,529)			1,051,333

See Notes to Financial Statements.

9

Schedule of Investments (concluded)

December 31, 2009

Investments	Shares		Value (000)
PREFERRED STOCK 0.24%
Banks: Diversified
Bank of America Corp.* (cost $2,659,500)		177,300	$	2,645
Total Long-Term Investments (cost $920,068,029)				1,053,978
	Principal Amount (000)
SHORT–TERM INVESTMENT 5.41%
Repurchase Agreement
Repurchase Agreement dated 12/31/2009, Zero Coupon due 1/4/2010 with Fixed Income Clearing Corp. collateralized by $57,990,000 of Federal Home Loan Mortgage Corp. at 4.125% due 2/24/2011; value: $61,034,475; proceeds: $59,834,667 (cost $59,834,667)	$	59,835		59,835
Total Investments in Securities 100.62% (cost $979,902,696)				1,113,813
Liabilities in Excess of Cash and Other Assets (0.62%)				(6,856	)
Net Assets 100.00%			$	1,106,957

ADR American Depositary Receipt.

Unit More than one class of securities traded together.

* Non-income producing security.

^(a) Foreign security traded in U.S. dollars.

See Notes to Financial Statements.

10

Statement of Assets and Liabilities

December 31,2009

ASSETS:
Investments in securities, at value (cost $979,902,696)	$	1,113,812,777
Cash		11,852
Receivables:
Capital shares sold		4,805,561
Investment securities sold		3,315,893
Interest and dividends		774,497
Prepaid expenses		11,458
Total assets		1,122,732,038
LIABILITIES:
Payables:
Investment securities purchased		13,991,269
Management fee		448,911
Directors’ fees		141,956
Capital shares reacquired		81,457
Fund administration		36,275
Accrued expenses and other liabilities		1,075,433
Total liabilities		15,775,301
NET ASSETS	$	1,106,956,737
COMPOSITION OF NET ASSETS:
Paid-in capital	$	1,608,669,995
Distributions in excess of net investment income		(95,108	)
Accumulated net realized loss on investments and foreign currency related transactions		(635,528,231	)
Net unrealized appreciation on investments		133,910,081
Net Assets	$	1,106,956,737
Outstanding shares (250 million shares of common stock authorized, $.001 par value)		54,386,949
Net asset value, offering and redemption price per share (Net assets divided by outstanding shares)		$20.35

See Notes to Financial Statements.

11

Statements of Operations

For the Year Ended December 31, 2009

Investment income:
Dividends (net of foreign withholding taxes of $68,934)	$	19,725,291
Interest		4,936
Total investment income		19,730,227
Expenses:
Management fee		5,203,972
Shareholder servicing		3,873,237
Fund administration		419,806
Reports to shareholders		108,899
Professional		52,447
Directors’ fees		35,326
Custody		27,349
Other		34,023
Gross expenses		9,755,059
Expense reductions (See Note 8)		(3,319	)
Net expenses		9,751,740
Net investment income		9,978,487
Net realized and unrealized gain (loss):
Net realized loss on investments and foreign currency related transactions		(318,850,895	)
Net realized loss on redemptions in-kind (See Note 6)		(181,621,468	)
Net change in unrealized appreciation/depreciation on investments		563,092,280
Net realized and unrealized gain		62,619,917
Net Increase in Net Assets Resulting From Operations	$	72,598,404

See Notes to Financial Statements.

12

Statements of Changes in Net Assets

DECREASE IN NET ASSETS	For the Year Ended December 31, 2009			For the Year Ended December 31, 2008
Operations:
Net investment income	$	9,978,487		$	30,196,214
Net realized loss on investments and foreign currency related transactions		(318,850,895	)		(313,306,748	)
Net realized loss on redemptions in-kind (See Note 6)		(181,621,468	)		—
Net change in unrealized appreciation/depreciation on investments		563,092,280			(597,109,674	)
Net increase (decrease) in net assets resulting from operations		72,598,404			(880,220,208	)
Distributions to shareholders from:
Net investment income		(9,940,508	)		(30,381,573	)
Net realized gain		—			(7,112,546	)
Total distributions to shareholders		(9,940,508	)		(37,494,119	)
Capital share transactions (See Note 11):
Proceeds from sales of shares		40,142,340			231,850,955
Reinvestment of distributions		9,940,508			37,494,119
Cost of shares reacquired		(153,818,111	)		(269,196,904	)
Redemptions in-kind (See Note 6)		(342,061,308	)		—
Net increase (decrease) in net assets resulting from capital share transactions		(445,796,571	)		148,170
Net decrease in net assets		(383,138,675	)		(917,566,157	)
NET ASSETS:
Beginning of year	$	1,490,095,412		$	2,407,661,569
End of year	$	1,106,956,737		$	1,490,095,412
Distributions in excess of net investment income	$	(95,108	)	$	(132,791	)

See Notes to Financial Statements.

13

Financial Highlights

	Year Ended 12/31
	2009		2008		2007		2006		2005
Per Share Operating Performance
Net asset value, beginning of year	$17.27		$  27.91		$29.34		$26.16		$27.18
Investment operations:
Net investment income(a)	.17		.35		.39		.39		.29
Net realized and unrealized gain (loss)	3.10		(10.55	)	.64		4.12		.60
Total from investment operations	3.27		(10.20	)	1.03		4.51		.89
Distributions to shareholders from:
Net investment income	(.19	)	(.36	)	(.38	)	(.36	)	(.27	)
Net realized gain	—		(.08	)	(2.08	)	(.97	)	(1.64	)
Total distributions	(.19	)	(.44	)	(2.46	)	(1.33	)	(1.91	)
Net asset value, end of year	$20.35		$  17.27		$27.91		$29.34		$26.16
Total Return(b)	18.90	%	(36.42	)%	3.44	%	17.27	%	3.25	%
Ratios to Average Net Assets:
Expenses, including expense reductions	.93	%	.90	%	.88	%	.87	%	.91	%
Expenses, excluding expense reductions	.93	%	.90	%	.88	%	.87	%	.91	%
Net investment income	.95	%	1.51	%	1.27	%	1.38	%	1.11	%
Supplemental Data:
Net assets, end of year (000)	$1,106,957		$1,490,095		$2,407,662		$2,153,380		$1,592,826
Portfolio turnover rate	71.71	%(c)	113.29	%	91.72	%(c)	51.65	%(c)	46.71	%

^(a) Calculated using average shares outstanding during the year.

^(b) Total return assumes the reinvestment of all distributions.

^(c) Includes portfolio securities delivered as a result of redemptions in-kind transactions.

See Notes to Financial Statements.

14

Notes to Financial Statements

1.    ORGANIZATION

Lord Abbett Series Fund, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company, incorporated under Maryland law in 1989. The Company consists of eight separate portfolios (the “Funds”). This report covers Growth and Income Portfolio (the “Fund”). The Fund is diversified as defined in the Act.

The investment objective of the Fund is long-term growth of capital and income without excessive fluctuations in market value. The Fund offers Variable Contract class shares (“Class VC Shares”) which are currently issued and redeemed only in connection with investments in, and payments under, variable annuity contracts and variable life insurance policies issued by life insurance and insurance-related companies.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

2.    SIGNIFICANT ACCOUNTING POLICIES

(a) Investment Valuation–Securities actively traded on any recognized U.S. or non-U.S. exchange or on The NASDAQ Stock Market LLC are valued at the last sale price or official closing price on the exchange or system on which they are principally traded. Events occurring after the close of trading on non-U.S. exchanges may result in adjustments to the valuation of foreign securities to more accurately reflect their fair value as of the close of regular trading on the New York Stock Exchange LLC. The Fund may rely on an independent fair valuation service in adjusting the valuations of foreign securities. Unlisted equity securities are valued at the last quoted sale price or, if no sale price is available, at the mean between the most recently quoted bid and asked prices. Securities for which market quotations are not readily available are valued at fair value as determined by management and approved in good faith by the Board of Directors. Short-term securities with 60 days or less remaining to maturity are valued using the amortized cost method, which approximates current market value.

(b) Security Transactions–Security transactions are recorded as of the date that the securities are purchased or sold (trade date). Realized gains and losses on sales of portfolio securities are calculated using the identified-cost method.

(c) Investment Income–Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis as earned. Discounts are accreted and premiums are amortized using the effective interest method. Withholding taxes on foreign dividends have been provided for in accordance with the applicable country’s tax rules and rates.

(d) Income Taxes–It is the policy of the Fund to meet the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all taxable income and capital gains to its shareholders. Therefore, no income tax provision is required.

15

Notes to Financial Statements (continued)

The Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund’s U.S. federal tax returns remains open for the fiscal years ended December 31, 2006 through December 31, 2009. The statutes of limitations on the Company’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

(e) Expenses–Expenses incurred by the Company that do not specifically relate to an individual fund are generally allocated to the Funds within the Company on a pro rata basis by relative net assets.

(f) Foreign Transactions–The books and records of the Fund are maintained in U.S. dollars and transactions denominated in foreign currencies are recorded in the Fund’s records at the rate prevailing when earned or recorded. Asset and liability accounts that are denominated in foreign currencies are adjusted daily to reflect current exchange rates and any unrealized gain (loss) is included in Net change in unrealized appreciation/depreciation on investments and translation of assets and liabilities denominated in foreign currencies on the Fund’s Statement of Operations. The resultant exchange gains and losses upon settlement of such transactions are included in Net realized loss on investments and foreign currency related transactions on the Fund’s Statement of Operations. The Fund does not isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the changes in market prices of the securities.

(g) Repurchase Agreements–The Fund may enter into repurchase agreements with respect to securities. A repurchase agreement is a transaction in which a Fund acquires a security and simultaneously commits to resell that security to the seller (a bank or securities dealer) at an agreed-upon price on an agreed-upon date. The Fund requires at all times that the repurchase agreement be collateralized by cash, or by securities of the U.S. Government, its agencies, its instrumentalities, or U.S. Government sponsored enterprises having a value equal to, or in excess of, the value of the repurchase agreement (including accrued interest). If the seller of the agreement defaults on its obligation to repurchase the underlying securities at a time when the value of these securities has declined, a Fund may incur a loss upon disposition of the securities.

(h) Fair Value Measurements–In accordance with Financial Accounting Standards Board (“FASB”), Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures (formerly SFAS 157), fair value is defined as the price that the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. ASC 820 established a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk—for example, the risk inherent in a particular valuation technique used to measure fair value (such as a pricing model) and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable

16

Notes to Financial Statements (continued)

inputs are based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below:

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

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.); and

• Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of December 31, 2009 in valuing the Fund’s investments carried at value:

Investment Type*	Level 1 (000)		Level 2 (000)		Level 3 (000)		Total (000)
Common Stocks	$	1,051,333	$	–	$	–	$	1,051,333
Preferred Stock		2,645		–		–		2,645
Repurchase Agreement		–		59,835		–		59,835
Total	$	1,053,978	$	59,835	$	–	$	1,113,813

* See Schedule of Investments for values in each industry.

3.    MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Management Fee

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

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

First $1 billion	.50%
Over $1 billion	.45%

For fiscal year ended December 31, 2009, the effective management fee paid to Lord Abbett was at an annualized rate of .50% of the Fund’s average daily net assets.

Lord Abbett provides certain administrative services to the Fund pursuant to an Administrative Services Agreement at an annual rate of .04% of the Fund’s average daily net assets.

The Company, on behalf of the Fund, has entered into services arrangements with certain insurance companies. 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 the insurance company’s separate account to service and maintain the Variable Contract owners’ accounts. The Fund may also compensate certain insurance companies, third-party administrators and other entities for providing recordkeeping, sub-transfer agency and other administrative services to the Fund. For the fiscal year ended December 31, 2009, the Fund incurred expenses of $3,765,318 for such services arrangements, which have been included in Shareholder Servicing Expense on the Statement of Operations.

17

Notes to Financial Statements (continued)

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

The tax character of distributions paid during the fiscal years ended December 31, 2009 and 2008 was as follows:

	Year Ended 12/31/2009		Year Ended 12/31/2008
Distributions paid from:
Ordinary income	$	9,940,508	$	30,381,573
Net long-term capital gains		–		7,112,546
Total distributions paid	$	9,940,508	$	37,494,119

As of December 31, 2009, the components of accumulated losses on a tax-basis were as follows:

Undistributed ordinary income– net	$	46,848
Total undistributed earnings	$	46,848
Capital loss carryforwards*		(556,387,693	)
Temporary differences		(141,956	)
Unrealized gains – net		54,769,543
Total accumulated losses—net	$	(501,713,258	)

* As of December 31, 2009, the capital loss carryforwards, along with the related expiration dates, were as follows:

2016	2017		Total
$174,242,085	$	382,145,608	$	556,387,693

As of December 31, 2009, the aggregate unrealized security gains and losses based on cost for U.S. federal income tax purposes were as follows:

Tax cost	$	1,059,043,234
Gross unrealized gain		84,540,963
Gross unrealized loss		(29,771,420	)
Net unrealized security gain	$	54,769,543

The difference between book-basis and tax-basis unrealized gains (losses) is attributable to wash sales.

18

Notes to Financial Statements (continued)

Permanent items identified during the fiscal year ended December 31, 2009 have been reclassified among the components of net assets based on their tax basis treatment as follows:

Distributions in Excess of Net Investment Income	Accumulated Net Realized Loss		Paid-in Capital
$(296)	$	181,621,725	$	(181,621,429	)

The permanent differences are attributable to the tax treatment of foreign currency transactions and redemptions in-kind.

5. PORTFOLIO SECURITIES TRANSACTIONS

Purchases and sales of investment securities (excluding short-term investments and including redemptions in-kind) for the fiscal year ended December 31, 2009 were as follows:

Purchases	Sales
$723,994,013	$	1,174,578,758

There were no purchases or sales of U.S. Government securities for the fiscal year ended December 31, 2009.

6. REDEMPTIONS IN-KIND

In certain circumstances, the Fund may distribute portfolio securities rather than cash as payments for a redemption of Fund shares (“redemptions in-kind”). For financial reporting purposes, the Fund recognizes a gain on redemptions in-kind to the extent the value of the distributed securities exceeds their costs; the Fund recognizes a loss if the cost exceeds value. During the fiscal year ended December 31, 2009, shareholders of the Fund redeemed Fund shares in exchange for Fund portfolio securities, causing the Fund to realize a net loss of $181,621,468.

7. DIRECTORS’ REMUNERATION

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

8. EXPENSE REDUCTIONS

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

19

Notes to Financial Statements (concluded)

9.    CUSTODIAN AND ACCOUNTING AGENT

State Street Bank and Trust Company (“SSB”) is the Company’s custodian and accounting agent. SSB performs custodial, accounting and recordkeeping functions relating to portfolio transactions and calculating the Fund’s NAV.

10.    INVESTMENT RISKS

The Fund is subject to the general risks and considerations associated with equity investing, as well as the particular risks associated with value stocks. The value of an investment will fluctuate in response to movements in the equity securities market in general and to the changing prospects of individual companies in which the Fund invests. Large-cap value stocks may perform differently than the market as a whole and other types of stocks, such as small company stocks and growth stocks. This is because different types of stocks tend to shift in and out of favor depending on market and economic conditions. The market may fail to recognize the intrinsic value of particular value stocks for a long time. In addition, if the Fund’s assessment of a company’s value or prospects for exceeding earnings expectations or market conditions is wrong, the Fund could suffer losses or produce poor performance relative to other funds, even in a rising market.

Due to its investments in multinational companies, the Fund may experience increased market, liquidity, currency, political, information and other risks.

These factors can affect the Fund’s performance.

11.    SUMMARY OF CAPITAL TRANSACTIONS

Transactions in shares of capital stock were as follows:

	Year Ended December 31, 2009		Year Ended December 31, 2008
Shares sold	2,356,631		9,857,097
Reinvestment of distributions	485,376		2,310,174
Shares reacquired	(9,252,869	)	(12,147,332	)
Redemptions in-kind	(25,488,920	)	–
Increase (decrease)	(31,899,782	)	19,939

12.    SUBSEQUENT EVENTS

In accordance with the provisions set forth in ASC Topic 855 (formerly SFAS 165), Subsequent Events, adopted by the Fund as of December 31, 2009, management has evaluated subsequent events existing in the Fund’s financial statements through February 16, 2010. Management has determined that there were no material subsequent events that would require recognition or additional disclosure in the Fund’s financial statements through this date.

13.    RECENT ACCOUNTING PRONOUNCEMENTS

In January 2010, the FASB issued Accounting Standards Update 2010-06 “Improving Disclosures about Fair Value Measurements” (“ASU 2010-06”). ASU 2010-06 provides clarifications to existing disclosures required by ASC 820 as well as amends ASC 820 to require certain new disclosures. ASU 2010-06 is substantially effective for interim and annual reporting periods beginning after December 15, 2009. Management is currently evaluating the impact the adoption of ASU 2010-06 will have on the Fund’s financial statement disclosures.

20

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of Lord Abbett Series Fund, Inc.:

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the Growth and Income Portfolio, one of the portfolios constituting the Lord Abbett Series Fund, Inc. (the “Company”), as of December 31, 2009, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2009, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Growth and Income Portfolio of the Lord Abbett Series Fund, Inc. as of December 31, 2009, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

DELOITTE & TOUCHE LLP

New York, New York

February 16, 2010

21

Basic Information About Management

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

Lord, Abbett & Co. LLC (“Lord Abbett”), a Delaware limited liability company, is the Company’s investment adviser.

Interested Directors

The following Directors are partners of Lord Abbett and are “interested persons” of the Company as defined in the Act. Mr. Dow and Ms. Foster are officers, directors, or trustees of each of the 14 Lord Abbett-sponsored funds, which consist of 53 portfolios or series.

Name, Address and Year of Birth	Current Position and Length of Service with Company	Principal Occupation During Past Five Years	Other Directorships
Robert S. Dow Lord, Abbett & Co. LLC 90 Hudson Street Jersey City, NJ 07302 (1945)	Director since 1995, Chairman since 1996	Senior Partner (since 2007), Chief Executive Officer (since 1996) and was formerly Managing Partner (1996 –2007), joined Lord Abbett in 1972.	N/A
Daria L. Foster Lord, Abbett & Co. LLC 90 Hudson Street Jersey City, NJ 07302 (1954)	Director since 2006	Managing Partner (since 2007) and was formerly Director of Marketing and Client Service, joined Lord Abbett in 1990.	N/A

Independent Directors

The following independent or outside Directors (“Independent Directors”) are also directors or trustees of each of the 14 Lord Abbett-sponsored funds, which consist of 53 portfolios or series.

Name, Address and Year of Birth	Current Position and Length of Service with Company	Principal Occupation During Past Five Years	Other Directorships
E. Thayer Bigelow Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1941)	Director since 1994	Managing General Partner, Bigelow Media, LLC (since 2000); Senior Adviser, Time Warner Inc. (1998 – 2000).	Currently serves as director of Crane Co. (since 1984), Huttig Building Products Inc. (since 1998) and R.H. Donnelley Inc. (since 2009).

22

Basic Information About Management (continued)

Name, Address and Year of Birth	Current Position and Length of Service with Company	Principal Occupation During Past Five Years	Other Directorships
William H.T. Bush Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1938)	Director since 1998	Co-founder and Chairman of the Board of the financial advisory firm of Bush –O’Donnell & Company (since 1986).	Currently serves as director of WellPoint, Inc., a health benefits company (since 2002).
Robert B. Calhoun, Jr. Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1942)	Director since 1998	Senior Advisor of Monitor Clipper Partners, a private equity investment fund (since 1997); President of Clipper Asset Management Corp. (1991 – 2009).	N/A
Julie A. Hill Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1946)	Director since 2004	Owner and CEO of The Hill Company, a business consulting firm (since 1998).	Currently serves as director of WellPoint, Inc., a health benefits company (since 1994) and Lend Lease Corporation Limited (since 2005).
Franklin W. Hobbs Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1947)	Director since 2001	Advisor of One Equity Partners, a private equity firm (since 2004).	Currently serves as a director and Chairman of the Board of GMAC Inc., a financial services firm (since 2009) and as a director of Molson Coors Brewing Company (since 2002).
Thomas J. Neff Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1937)	Director since 1989	Chairman of Spencer Stuart (U.S.), an executive search consulting firm (since 1996).	Currently serves as director of Ace, Ltd. (since 1997) and Hewitt Associates, Inc. (since 2004).
James L.L. Tullis Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1947)	Director since 2006	CEO of Tullis-Dickerson and Co. Inc., a venture capital management firm (since 1990).	Currently serves as director of Crane Co. (since 1998).

23

Basic Information About Management (continued)

Officers

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

Name and Year of Birth	Current Position with Company	Length of Service of Current Position	Principal Occupation During Past Five Years
Robert S. Dow (1945)	Chief Executive Officer and Chairman	Elected in 1996	Senior Partner (since 2007), Chief Executive Officer (since 1996) and was formerly Managing Partner (1996 – 2007), joined Lord Abbett in 1972.
Daria L. Foster (1954)	President	Elected in 2006	Managing Partner (since 2007) and was formerly Director of Marketing and Client Service, joined Lord Abbett in 1990.
Robert P. Fetch (1953)	Executive Vice President	Elected in 2003	Partner and Director, joined Lord Abbett in 1995.
Daniel H. Frascarelli (1954)	Executive Vice President	Elected in 2003	Partner and Director, joined Lord Abbett in 1990.
Robert I. Gerber (1954)	Executive Vice President	Elected in 2003	Partner and Chief Investment Officer (since 2007), joined Lord Abbett in 1997 as Director of Taxable Fixed Income Management.
Todd D. Jacobson (1966)	Executive Vice President	Elected in 1999	Portfolio Manager, joined Lord Abbett in 2003.
Eli M. Salzmann (1964)	Executive Vice President	Elected in 2006	Partner and Director, joined Lord Abbett in 1997.
Christopher J. Towle (1957)	Executive Vice President	Elected in 1999	Partner and Director, joined Lord Abbett in 1987.
Paul J. Volovich (1973)	Executive Vice President	Elected in 2005	Partner and Director, joined Lord Abbett in 1997.
James W. Bernaiche (1956)	Chief Compliance Officer	Elected in 2004	Partner and Chief Compliance Officer, joined Lord Abbett in 2001.
Joan A. Binstock (1954)	Chief Financial Officer and Vice President	Elected in 1999	Partner and Chief Operations Officer, joined Lord Abbett in 1999.

24

Basic Information About Management (continued)

Name and Year of Birth	Current Position with Company	Length of Service of Current Position	Principal Occupation During Past Five Years
Jeff Diamond (1960)	Vice President	Elected in 2008	Portfolio Manager, joined Lord Abbett in 2007 and was formerly a Managing Director at Axia Capital Management LLC (2004 –2006).
John K. Forst (1960)	Vice President and Assistant Secretary	Elected in 2005	Deputy General Counsel, joined Lord Abbett in 2004.
Michael S. Goldstein (1968)	Vice President	Elected in 1999	Partner and Portfolio Manager, joined Lord Abbett in 1997.
Lawrence H. Kaplan (1957)	Vice President and Secretary	Elected in 1997	Partner and General Counsel, joined Lord Abbett in 1997.
Deepak Khanna (1963)	Vice President	Elected in 2008	Portfolio Manager, rejoined Lord Abbett in 2007 from Jennison Associates LLC (2005 –2007). Mr. Khanna’s former experience at Lord Abbett included Senior Research Analyst – other investment strategies (2000 – 2005).
David J. Linsen (1974)	Vice President	Elected in 2008	Director and Portfolio Manager, joined Lord Abbett in 2001.
Elizabeth O. MacLean (1966)	Vice President	Elected in 2008	Partner and Portfolio Manager, joined Lord Abbett in 2006 and was formerly a Managing Director/Portfolio Manager at Nomura Corporate Research and Asset Management, Inc. (2000 – 2006).
A. Edward Oberhaus, III (1959)	Vice President	Elected in 1998	Partner and Director, joined Lord Abbett in 1983.
Todor Petrov (1974)	Vice President	Elected in 2008	Portfolio Manager, joined Lord Abbett in 2003.
Thomas R. Phillips (1960)	Vice President and Assistant Secretary	Elected in 2008	Deputy General Counsel, joined Lord Abbett in 2006 and was formerly an attorney at Morgan, Lewis & Bockius LLP.
Randy M. Reynolds (1972)	Vice President	Elected in 2008	Portfolio Manager, joined Lord Abbett in 1999.

25

Basic Information About Management (concluded)

Name and Year of Birth	Current Position with Company	Length of Service of Current Position	Principal Occupation During Past Five Years
Lawrence D. Sachs (1963)	Vice President	Elected in 2010	Partner and Portfolio Manager, joined Lord Abbett in 2001.
Lawrence B. Stoller (1963)	Vice President and Assistant Secretary	Elected in 2007	Senior Deputy General Counsel, joined Lord Abbett in 2007 and was formerly an Executive Vice President and General Counsel at Cohen & Steers Capital Management, Inc. (1999–2007).
Bernard J. Grzelak (1971)	Treasurer	Elected in 2003	Partner and Director of Fund Administration, joined Lord Abbett in 2003.

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

26

Approval of Advisory Contract

At meetings held on December 16 and 17, 2009, the Board, including all of the Directors who are not interested persons of the Fund or Lord, Abbett & Co. LLC. (“Lord Abbett”), considered whether to approve the continuation of the existing management agreement between the Fund and Lord Abbett. In addition to the materials the Board had reviewed throughout the course of the year, the Board received materials relating to the management agreement before the meeting and had the opportunity to ask questions and request further information in connection with its consideration. The Board also took into account its familiarity with Lord Abbett gained through its previous meetings and discussions, and the examination of the portfolio management team conducted by members of the Contract Committee during the year.

The materials received by the Board included, but were not limited to, (1) information provided by Lipper Inc. regarding the investment performance of the Fund compared to the investment performance of one or more groups of funds with substantially similar investment objectives (the “performance universe”) and to the investment performance of an appropriate securities index, (2) information on the expense ratios, effective management fee rates, and other expense components, for the Fund and one or more groups of funds with similar objectives and of similar size (the “peer group”), (3) sales and redemption information for the Fund, (4) information regarding Lord Abbett’s financial condition, (5) an analysis of the relative profitability of the management agreement to Lord Abbett, (6) information regarding the distribution arrangements of the Fund, and (7) information regarding the personnel and other resources devoted by Lord Abbett to managing the Fund.

Investment Management Services Generally. The Board considered the investment management services provided by Lord Abbett to the Fund, including investment research, portfolio management, and trading, and Lord Abbett’s commitment to compliance with all relevant legal requirements. The Board also observed that Lord Abbett was solely engaged in the investment management business and accordingly did not experience the conflicts of interest resulting from being engaged in other lines of business. The Board noted that in recent years Lord Abbett had not used brokerage commissions to purchase third-party research, but had changed this practice in 2009, as it had previously discussed with the Board. The Board considered the investment advisory services provided by Lord Abbett to other clients, the fees charged for the services, and the differences in the nature of the services provided to the Fund and other Lord Abbett Funds, on the one hand, and the services provided to other clients, on the other.

Investment Performance and Compliance. The Board reviewed the Fund’s investment performance in relation to that of the performance universe, both in terms of total return and in terms of other statistical measures. The Board observed that the investment performance of the Fund was in the fourth quintile of its performance universe for the nine-month period, in the third quintile for the one-year, three-year, and five-year periods, and in the second quintile for the ten-year period. The Board also observed that the investment performance was lower than that of the Lipper Variable Underlying Funds Large-Cap Value Index for the nine-month, one-year, three-year, and five-year periods and higher than that of the Index for the ten-year period.

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

27

and philosophy, and Lord Abbett’s approach to recruiting, training, and retaining investment management personnel. The Board determined that Lord Abbett had the expertise and resources to manage the Fund effectively.

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

Expenses. The Board considered the expense levels of the Fund and the expense levels of the peer group. The Board considered the fiscal periods on which the peer group information was based, and noted that such periods ended before September 30, 2009. The Board noted that the expense levels of the peer group likely would have been different for periods ending September 30, 2009, due to the lower asset levels prevailing in the mutual fund industry during much of 2009. The Board also observed that the Fund’s transfer agency expenses were likely to decrease in 2010, as a result of renegotiation of the transfer agency agreement. It also considered the amount and nature of the fees paid by shareholders. The Board observed that for the nine months ended September 30, 2009 (annualized) the contractual management and administrative services fee rates were approximately eight basis points below the median of the peer group and the actual management and administrative services fee rates were approximately six basis points below the median of the peer group. The Board also observed that for the nine months ended September 30, 2009 (annualized) the total expense ratio of the Fund was approximately the same as the median of the peer group.

Profitability. The Board considered the level of Lord Abbett’s profits in managing the Fund, including a review of Lord Abbett’s methodology for allocating its costs to its management of the Fund. The Board concluded that the allocation methodology had a reasonable basis and was appropriate. It considered any profits realized by Lord Abbett in connection with the operation of the Fund and whether the amount of profit was fair for the management of the Fund. The Board also considered the profits realized from other businesses of Lord Abbett, which may benefit from or be related to the Fund’s business. The Board considered Lord Abbett’s profit margins in comparison with available industry data, both accounting for and ignoring marketing and distribution expenses, and how those profit margins could affect Lord Abbett’s ability to recruit and retain investment personnel. The Board recognized that Lord Abbett’s profitability was a factor in enabling it to attract and retain qualified investment management personnel to provide services to the Fund. The Board noted that Lord Abbett’s overall profitability had decreased in its 2009 fiscal year, largely due to declines in market prices and shareholder redemptions. The Board concluded that Lord Abbett’s profitability overall and as to the Fund was not excessive.

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

Other Benefits to Lord Abbett. The Board considered the character and amount of fees paid by the Fund and the Fund’s shareholders to Lord Abbett and Distributor for services other than investment advisory services. The Board also considered the revenues and profitability of Lord Abbett’s investment advisory business apart from its mutual fund business, and the intangible benefits enjoyed by Lord Abbett by virtue of its relationship with the Fund. The Board observed that Distributor receives 12b-1 fees from certain of the Lord Abbett Funds as to shares held in accounts

28

for which there is no other broker of record, may retain a portion of the 12b-1 fees from the Funds, and receives a portion of the sales charges on sales and redemptions of some classes of shares. The Board observed that, in addition, Lord Abbett accrues certain benefits for its business of providing investment advice to clients other than the Lord Abbett Funds, but that that business also benefits the Funds. The Board also noted that Lord Abbett, as disclosed in the prospectus of the Fund, has entered into revenue sharing arrangements with certain entities that distribute shares of the Fund. The Board also took into consideration the investment research that Lord Abbett receives as a result of Fund brokerage transactions.

Alternative Arrangements. The Board considered whether, instead of approving continuation of the management agreement, it might be in the best interests of the Fund to implement one or more alternative arrangements, such as continuing to employ Lord Abbett, but on different terms.

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

29

Householding

The 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 need additional copies or do not want your mailings to be “householded,” please call Lord Abbett at 888-522-2388 or send a written request with your name, the name of your fund or funds and your account number or numbers to Lord Abbett Family of Funds, P.O. Box 219336, Kansas City, MO 64121.

Proxy Voting Policies, Procedures and Records

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

Shareholder Reports and Quarterly Portfolio Disclosure

The Fund is required to file its complete schedule of portfolio holdings with the SEC for its first and third fiscal quarters on Form N-Q. Copies of the filings are available without charge, upon request on the SEC’s Website at www.sec.gov and may be available by calling Lord Abbett at 888-522-2388. You can also obtain copies of Form N-Q by (i) visiting the SEC’s Public Reference Room in Washington, DC (information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330); (ii) sending your request and duplicating fee to the SEC’s Public Reference Section, Washington, DC 20549-1520; or (iii) sending your request electronically, after paying a duplicating fee, to publicinfo@sec.gov.

Tax Information

For corporate shareholders, 100% of the ordinary income distribution paid by the Fund during the fiscal year ended December 31, 2009 qualified for the dividends received deduction.

30

This report, when not used for the general information of shareholders of the Fund, is to be distributed only if preceded or accompanied by a current fund prospectus.

Lord Abbett mutual fund shares are distributed by LORD ABBETT DISTRIBUTOR LLC.

Lord Abbett Series Fund, Inc.

Growth and Income Portfolio

LASFGI-2-1209

(2/10)

2009

LORD ABBETT

ANNUAL

REPORT    

Lord Abbett

Series Fund—

Growth Opportunities Portfolio

For the fiscal year ended December 31, 2009

Lord Abbett Series Fund — Growth Opportunities Portfolio

Annual Report

For the fiscal year ended December 31, 2009

From left to right: Robert S. Dow, Director and Chairman of the Lord Abbett Funds; E. Thayer Bigelow, Independent Lead Director of the Lord Abbett Funds; and Daria L. Foster, Director and President of the Lord Abbett Funds.

Dear Shareholders: We are pleased to provide you with this overview of the Lord Abbett Series Fund – Growth Opportunities Portfolio’s performance for the fiscal year ended December 31, 2009. On this page and the following pages, we discuss the major factors that influenced performance. For detailed and more timely information about the Fund, please visit our Website at www.lordabbett.com, where you also can access the quarterly commentaries by the Fund’s portfolio manager.

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

Best regards,

Robert S. Dow

Chairman

Q: What were the overall market conditions during the fiscal year ended December 31, 2009?

A: After a difficult start to the year, the equity markets (as represented by the S&P 500^® Index¹) recovered during the balance of the period, ending the year up 26.46%. This improvement enabled some investors to recover a portion of their previous losses.

Overall, most equity asset classes and investing styles trended higher throughout the period. Mid cap stocks (as defined by the Russell MidCap^® Index²) generally outperformed large cap stocks (as measured by the Russell 1000^® Index³) and small cap stocks (as measured by the Russell 2000^® Index⁴). Growth stocks (as represented by the Russell 3000^® Growth Index⁵) generally outperformed value stocks (as represented by the Russell 3000^® Value Index ⁶) for the fiscal year.

Q: How did the Growth Opportunities Portfolio perform during the fiscal year ended December 31, 2009?

A: The Fund returned 45.55%, reflecting performance at the net asset value (NAV) of Class VC shares, with all distributions

1

reinvested, compared to its benchmark, the Russell Midcap^® Growth Index,⁷ which had a total return of 46.29% in the same period.

Q: What were the most significant factors affecting performance?

A: The most significant detractors from the Fund’s performance relative to its benchmark for the 12-month period were the healthcare, energy, and utilities sectors.

Among the individual holdings that detracted from performance were healthcare holding C.R. Bard, Inc., a supplier of medical, surgical, diagnostic, and patient care devices; energy holding Sunoco, Inc., a petroleum refiner and marketer; and utilities holding MetroPCS Communications, Inc., a U.S. wireless communications provider.

The most significant contributors to the Fund’s performance relative to its benchmark for the 12-month period were the technology, consumer discretionary, and producer durables sectors.

Among the individual holdings that contributed to performance were technology holding Network Appliance, Inc., a provider of storage and data management solutions; consumer discretionary holding Starwood Hotel & Resorts Worldwide, Inc., a worldwide operator of luxury and upscale hotels; and producer durables holding Nalco Holding Co., a provider of integrated water treatment and process improvement services.

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

¹  The S&P 500^® Index is widely regarded as the standard for measuring large cap U.S. stock market performance and includes a representative sample of leading companies in leading industries.

²  The Russell Midcap^® Index measures the performance of the 800 smallest companies in the Russell 1000 Index, which represents approximately 25% of the total market capitalization of the Russell 1000 Index.

³  The Russell 1000^® Index measures the performance of the 1,000 largest companies in the Russell 3000 Index, which represents approximately 92% of the total market capitalization of the Russell 3000 Index.

⁴  The Russell 2000^® Index is composed of 2,000 securities with market values ranging from $25 million to $275 million. The Growth Index is comprised of securities in the Russell 2000^® Index with higher price-to-book ratios and higher forecasted growth.

⁵  The Russell 3000^® Growth Index measures the performance of those Russell 3000^® Index companies with higher price-to-book ratios and higher forecasted growth values. The stocks in this index are also members of either the Russell 1000^® Growth or the Russell 2000^® Growth indexes.

⁶  The Russell 3000^® Value Index measures the performance of those Russell 3000 Index companies with lower price-to-book ratios and lower forecasted growth values. The stocks in this index are also members of either the Russell 1000^® Value or the Russell 2000^® Value indexes.

⁷  The Russell Midcap^® Growth Index measures the performance of those Russell Midcap companies with higher price-to-book ratios and higher forecasted growth values. The stocks also are members of the Russell 1000^® Growth Index.

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

Important Performance and Other Information

Performance data quoted reflect past performance and are no guarantee of future results. Current

2

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 www.lordabbett.com.

During the period covered in this report, expense waivers and reimbursements were in place. Without such expense waivers and reimbursements, the Fund’s returns would have been lower.

The views of the Fund’s management and the portfolio holdings described in this report are as of December 31, 2009; these views and portfolio holdings may have changed subsequent to this date, and they do not guarantee the future performance of the markets or the Fund. Information provided in this report should not be considered a recommendation to purchase or sell securities.

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

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

The Fund serves as an underlying investment vehicle for variable annuity contracts and variable life insurance policies.

3

Investment Comparison

Below is a comparison of a $10,000 investment in Class VC shares with the same investment in the Russell Midcap^® Growth Index and the S&P MidCap 400 Growth Index, assuming reinvestment of all dividends and distributions. The Fund’s shares are sold only to insurance company separate accounts that fund certain variable annuity and variable life contracts. This line graph comparison does not reflect the sales charges or other expenses of these contracts. If those sales charges and expenses were reflected, returns would be less. The graph and performance table below do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. During certain periods, expenses of the Fund have been waived or reimbursed by Lord Abett; without such waiver or reimbursement of expenses, the Fund’s returns would have been lower. Past performance is no guarantee of future results.

Average Annual Total Returns for the

Periods Ended December 31, 2009

	1 Year	5 Years	Life of Class
Class VC2	45.55%	4.24%	7.67%

¹    Performance for each unmanaged index does not reflect transaction costs, management fees or sales charges. The performance of each index is not necessarily representative of the Fund’s performance. Performance for each index begins on April 30, 2003.

²    The Class VC shares were first offered on April 30, 2003.

4

Expense Example

As 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 ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2009 through December 31, 2009).

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 products that invest in the Fund, are not reflected in this Example. If such fees and expenses were reflected in the Example, the total expenses shown would be higher. Fees and expenses regarding such variable insurance products are separately described in the prospectus related to those products.

Actual Expenses

The first line of the table on the following page provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading titled “Expenses Paid During the Period 7/1/09 – 12/31/09” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

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

5

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

	Beginning Account Value		Ending Account Value		Expenses Paid During Period†
	7/1/09		12/31/09		7/1/09 - 12/31/09
Class VC
Actual	$	1,000.00	$	1,264.70	$	6.85
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.16	$	6.11

^† 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 184/365 (to reflect one-half year period).

Portfolio Holdings Presented by Sector

December 31, 2009

Sector*	%**
Consumer Discretionary	21.63%
Consumer Staples	1.82%
Energy	8.86%
Financial Services	13.11%
Healthcare	12.65%
Materials & Processing	4.57%
Producer Durables	11.99%
Technology	23.26%
Utilities	0.45%
Short-Term Investment	1.66%
Total	100.00%

* A sector may comprise several industries.

** Represents percent of total investments.

6

Schedule of Investments

December 31, 2009

Investments	Shares	Value (000)
COMMON STOCKS 98.54%
Advertising Agencies 0.75%
Lamar Advertising Co. Class A*	25,727	$	800
Aerospace 0.81%
Rockwell Collins, Inc.	15,698		869
Asset Management & Custodian 4.10%
Affiliated Managers Group, Inc.*	10,499		707
BlackRock, Inc.	3,911		908
Invesco Ltd.	28,000		658
State Street Corp.	11,002		479
T. Rowe Price Group, Inc.	30,862		1,643
Total			4,395
Auto Parts 0.52%
LKQ Corp.*	28,243		553
Auto Services 0.59%
Goodyear Tire & Rubber Co. (The)*	44,940		634
Back Office Support, Human Resources, and Consulting 1.38%
Monster Worldwide, Inc.*	42,930		747
Robert Half International, Inc.	27,419		733
Total			1,480
Banks: Diversified 2.11%
City National Corp.	16,293		743
Fifth Third Bancorp	44,021		429
KeyCorp	111,328		618
SunTrust Banks, Inc.	22,893		465
Total			2,255
Beverage: Soft Drinks 0.30%
Green Mountain Coffee Roasters, Inc.*	3,963		323

Investments	Shares	Value (000)
Biotechnology 1.84%
Alexion Pharmaceuticals, Inc.*	15,207	$	742
Life Technologies Corp.*	11,070		578
Onyx Pharmaceuticals, Inc.*	22,148		650
Total			1,970
Casinos & Gambling 1.30%
International Game Technology	45,849		861
MGM Mirage*	58,703		535
Total			1,396
Chemical: Diversified 0.87%
Celanese Corp. Series A	29,005		931
Coal 1.94%
CONSOL Energy, Inc.	25,353		1,263
Walter Energy, Inc.	10,838		816
Total			2,079
Communications Technology 0.46%
Juniper Networks, Inc.*	18,280		488
Computer Services, Software & Systems 7.30%
ANSYS, Inc.*	22,206		965
Citrix Systems, Inc.*	25,707		1,070
Cognizant Technology Solutions Corp. Class A*	36,749		1,665
Equinix, Inc.*	11,034		1,171
F5 Networks, Inc.*	13,594		720
Intuit, Inc.*	14,786		454
McAfee, Inc.*	9,241		375
Nuance Communications, Inc.*	39,986		621
VMware, Inc. Class A*	18,410		780
Total			7,821
Computer Technology 4.09%
NetApp, Inc.*	49,583		1,705
NVIDIA Corp.*	66,605		1,244

See Notes to Financial Statements.

7

Schedule of Investments (continued)

December 31, 2009

Investments	Shares	Value (000)
Computer Technology (continued)
Palm, Inc.*	39,565	$	397
Western Digital Corp.*	23,434		1,035
Total			4,381
Cosmetics 1.28%
Avon Products, Inc.	23,577		743
Estee Lauder Cos., Inc. (The) Class A	12,929		625
Total			1,368
Diversified Financial Services 1.41%
Capital One Financial Corp.	17,317		664
Lazard Ltd. Class A	22,302		847
Total			1,511
Diversified Manufacturing Operations 0.47%
ITT Corp.	10,219		508
Diversified Retail 1.35%
Nordstrom, Inc.	38,581		1,450
Education Services 0.91%
Apollo Group, Inc. Class A*	16,106		976
Electronic Components 1.11%
Amphenol Corp. Class A	25,705		1,187
Electronic Entertainment 0.49%
Electronic Arts, Inc.*	29,807		529
Engineering & Contracting Services 1.81%
Fluor Corp.	9,341		421
Nalco Holding Co.	39,711		1,013
URS Corp.*	11,354		505
Total			1,939
Fertilizers 0.83%
CF Industries Holdings, Inc.	2,108		191
Intrepid Potash, Inc.*	23,910		697
Total			888

Investments	Shares	Value (000)
Financial Data & Systems 1.47%
Alliance Data Systems Corp.*	11,471	$	741
Moody’s Corp.	31,038		832
Total			1,573
Healthcare Facilities 0.65%
DaVita, Inc.*	11,812		694
Healthcare Management Services 1.72%
CIGNA Corp.	23,108		815
Humana, Inc.*	23,349		1,025
Total			1,840
Healthcare Services 1.98%
Cerner Corp.*	8,717		719
Express Scripts, Inc.*	8,089		699
McKesson Corp.	11,244		703
Total			2,121
Homebuilding 0.44%
NVR, Inc.*	662		470
Hotel/Motel 2.04%
Marriott International, Inc. Class A	35,776		975
Starwood Hotels & Resorts Worldwide, Inc.	33,078		1,210
Total			2,185
Insurance: Life 0.99%
Principal Financial Group, Inc.	43,947		1,056
Leisure Time 0.66%
priceline.com, Inc.*	3,217		703
Luxury Items 0.66%
Tiffany & Co.	16,394		705
Machinery: Industrial 0.54%
Kennametal, Inc.	22,458		582

See Notes to Financial Statements.

8

Schedule of Investments (continued)

December 31, 2009

Investments	Shares	Value (000)
Medical & Dental Instruments & Supplies 2.84%
C.R. Bard, Inc.	10,453	$	814
Edwards Lifesciences Corp.*	6,540		568
Kinetic Concepts, Inc.*	7,938		299
ResMed, Inc.*	18,246		954
Stryker Corp.	8,141		410
Total			3,045
Medical Equipment 0.72%
Affymetrix, Inc.*	41,638		243
Thermo Fisher Scientific, Inc.*	11,146		532
Total			775
Metal Fabricating 1.18%
Precision Castparts Corp.	11,498		1,269
Metals & Minerals: Diversified 0.82%
Cliffs Natural Resources, Inc.	8,013		369
Compass Minerals International, Inc.	7,543		507
Total			876
Miscellaneous: Consumer Staples 0.68%
Energizer Holdings, Inc.*	11,832		725
Offshore Drilling & Other Services 1.45%
Atwood Oceanics, Inc.*	18,847		676
Diamond Offshore Drilling, Inc.	8,946		880
Total			1,556
Oil: Crude Producers 3.01%
Cabot Oil & Gas Corp.	16,197		706
Continental Resources, Inc.*	12,532		537
Petrohawk Energy Corp.*	25,786		619
Range Resources Corp.	12,903		643
Southwestern Energy Co.*	14,785		713
Total			3,218
Oil: Well Equipment & Services 2.48%
Cameron International Corp.*	26,643		1,114

Investments	Shares	Value (000)
Oceaneering International, Inc.*	14,886	$	871
Smith International, Inc.	24,860		675
Total			2,660
Pharmaceuticals 2.92%
AmerisourceBergen Corp.	28,059		732
Vertex Pharmaceuticals, Inc.*	17,864		765
Warner Chilcott plc Class A (Ireland)*(a)	38,117		1,085
Watson Pharmaceuticals, Inc.*	13,766		545
Total			3,127
Producer Durables: Miscellaneous 0.49%
W.W. Grainger, Inc.	5,434		526
Production Technology Equipment 1.46%
Lam Research Corp.*	23,423		918
Varian Semiconductor Equipment Associates, Inc.*	17,899		642
Total			1,560
Railroads 1.11%
Kansas City Southern*	35,765		1,191
Real Estate 0.68%
CB Richard Ellis Group, Inc. Class A*	53,906		731
Real Estate Investment Trusts 0.90%
Simon Property Group, Inc.	12,014		959
Scientific Instruments: Control & Filter 0.95%
Parker Hannifin Corp.	9,948		536
Roper Industries, Inc.	9,260		485
Total			1,021
Scientific Instruments: Electrical 0.27%
AMETEK, Inc.	7,652		293

See Notes to Financial Statements.

9

Schedule of Investments (continued)

December 31, 2009

Investments	Shares	Value (000)
Scientific Instruments: Gauges & Meters 1.26%
Agilent Technologies, Inc.*	19,578	$	608
Itron, Inc.*	10,888		736
Total			1,344
Securities Brokerage & Services 1.48%
IntercontinentalExchange, Inc.*	8,449		949
TD Ameritrade Holding Corp.*	32,998		639
Total			1,588
Semiconductors & Components 8.41%
Altera Corp.	31,959		723
Analog Devices, Inc.	32,882		1,038
Atheros Communications, Inc.*	25,538		874
Avnet, Inc.*	21,927		661
Broadcom Corp. Class A*	13,242		416
Cree, Inc.*	17,369		979
Cypress Semiconductor Corp.*	44,536		470
Linear Technology Corp.	24,477		748
Marvell Technology Group Ltd.*	48,471		1,006
Microchip Technology, Inc.	14,662		426
ON Semiconductor Corp.*	94,717		834
Silicon Laboratories, Inc.*	17,104		827
Total			9,002
Specialty Retail 8.98%
Abercrombie & Fitch Co. Class A	21,033		733
Aeropostale, Inc.*	16,785		572
American Eagle Outfitters, Inc.	50,918		865
Bed Bath & Beyond, Inc.*	23,582		911
CarMax, Inc.*	35,757		867
Dick’s Sporting Goods, Inc.*	23,185		577
Dress Barn, Inc. (The)*	29,591		684
GameStop Corp. Class A*	28,866		633

Investments	Shares	Value (000)
Limited Brands, Inc.	69,603	$	1,339
O’Reilly Automotive, Inc.*	16,768		639
Staples, Inc.	16,709		411
TJX Companies, Inc. (The)	17,454		638
Urban Outfitters, Inc.*	21,296		745
Total			9,614
Steel 0.88%
United States Steel Corp.	17,006		937
Textiles Apparel & Shoes 2.20%
Carter’s, Inc.*	26,462		695
Coach, Inc.	30,456		1,113
Polo Ralph Lauren Corp.	6,816		552
Total			2,360
Tobacco 0.85%
Lorillard, Inc.	11,324		909
Transportation: Miscellaneous 0.87%
Expeditors International of Washington, Inc.	26,908		935
Truckers 2.03%
C.H. Robinson Worldwide, Inc.	11,983		704
Con-way, Inc.	21,579		753
J.B. Hunt Transport Services, Inc.	22,307		720
Total			2,177
Utilities: Miscellaneous 0.45%
Ormat Technologies, Inc.	12,729		482
Total Common Stocks (cost $82,832,013)			105,540

See Notes to Financial Statements.

10

Schedule of Investments (concluded)

December 31, 2009

Investments	Principal Amount (000)		Value (000)
SHORT-TERM INVESTMENT 1.67%
Repurchase Agreement
Repurchase Agreement dated 12/31/2009, Zero Coupon due 1/4/2010 with Fixed Income Clearing Corp. collateralized by $1,730,000 of Federal Home Loan Mortgage Corp. at 4.125% due 2/24/2011; value: $1,820,825; proceeds: $1,784,024 (cost $1,784,024)	$	1,784	$	1,784
Total Investments in Securities 100.21% (cost $84,616,037)				107,324
Liabilities in Excess of Other Assets (0.21%)				(226)
Net Assets 100.00%			$	107,098

* Non-income producing security.

^(a) Foreign security traded in U.S. dollars.

See Notes to Financial Statements.

11

Statement of Assets and Liabilities

December 31, 2009

ASSETS:
Investments in securities, at value (cost $84,616,037)	$	107,324,252
Receivables:
Investment securities sold		217,728
Dividends		33,636
Capital shares sold		31,974
From advisor (See Note 3)		4,110
Prepaid expenses and other assets		603
Total assets		107,612,303
LIABILITIES:
Payables:
Investment securities purchased		213,872
Management fee		68,387
Capital shares reacquired		38,477
Directors’ fees		6,202
Fund administration		3,420
Accrued expenses and other liabilities		183,543
Total liabilities		513,901
NET ASSETS	$	107,098,402
COMPOSITION OF NET ASSETS:
Paid-in capital	$	98,473,464
Distributions in excess of net investment income		(6,177	)
Accumulated net realized loss on investments		(14,077,100	)
Net unrealized appreciation on investments		22,708,215
Net Assets	$	107,098,402
Outstanding shares (50 million shares of common stock authorized, $.001 par value)		7,446,960
Net asset value, offering and redemption price per share (Net assets divided by outstanding shares)		$14.38

See Notes to Financial Statements.

12

Statements of Operations

For the Year Ended December 31, 2009

Investment income:
Dividends	$	785,251
Interest		174
Total investment income		785,425
Expenses:
Management fee		696,388
Shareholder servicing		319,257
Reports to shareholders		56,318
Professional		38,308
Fund administration		34,819
Custody		6,412
Directors’ fees		2,733
Other		2,498
Gross expenses		1,156,733
Expenses reductions (See Note 7)		(185	)
Management fees waived and expenses reimbursed (See Note 3)		(111,966	)
Net expenses		1,044,582
Net investment loss		(259,157	)
Net realized and unrealized gain (loss):
Net realized loss on investments		(9,276,289	)
Net change in unrealized appreciation/depreciation on investments		42,836,725
Net realized and unrealized gain		33,560,436
Net Increase in Net Assets Resulting From Operations	$	33,301,279

See Notes to Financial Statements.

13

Statements of Changes in Net Assets

INCREASE (DECREASE) IN NET ASSETS	For the Year Ended December 31, 2009			For the Year Ended December 31, 2008
Operations:
Net investment loss	$	(259,157	)	$	(427,421	)
Net realized loss on investments		(9,276,289	)		(4,746,039	)
Net change in unrealized appreciation/depreciation on investments		42,836,725			(39,857,678	)
Net increase (decrease) in net assets resulting from operations		33,301,279			(45,031,138	)
Distributions to shareholders from:
Net realized gain		–			(1,488,067	)
Capital share transactions (See Note 10):
Proceeds from sales of shares		18,092,168			19,104,461
Reinvestment of distributions		–			1,488,067
Cost of shares reacquired		(19,206,893	)		(25,579,821	)
Net decrease in net assets resulting from capital share transactions		(1,114,725	)		(4,987,293	)
Net increase (decrease) in net assets		32,186,554			(51,506,498	)
NET ASSETS:
Beginning of year	$	74,911,848		$	126,418,346
End of year	$	107,098,402		$	74,911,848
Distributions in excess of net investment income	$	(6,177	)	$	(5,275	)

See Notes to Financial Statements.

14

Financial Highlights

	Year Ended 12/31
	2009		2008		2007		2006		2005
Per Share Operating Performance
Net asset value, beginning of year	$  9.88		$16.34		$14.67		$13.73		$13.30
Investment operations:
Net investment loss(a)	(.03	)	(.06	)	(.09	)	(.04	)	(.06	)
Net realized and unrealized gain (loss)	4.53		(6.20	)	3.22		1.12		.68
Total from investment operations	4.50		(6.26	)	3.13		1.08		.62
Distributions to shareholders from:
Net realized gain	–		(.20	)	(1.46	)	(.14	)	(.19	)
Net asset value, end of year	$14.38		$  9.88		$16.34		$14.67		$13.73
Total Return(b)	45.55	%	(38.24	)%	21.28	%	7.89	%	4.62	%
Ratios to Average Net Assets:
Expenses, excluding expense reductions and including management fees waived and expenses reimbursed	1.20	%	1.20	%	1.20	%	1.20	%	1.20	%
Expenses, including expense reductions, management fees waived and expenses reimbursed	1.20	%	1.20	%	1.20	%	1.20	%	1.20	%
Expenses, excluding expense reductions, management fees waived and expenses reimbursed	1.33	%	1.35	%	1.31	%	1.36	%	1.42	%
Net investment loss	(.30	)%	(.43	)%	(.55	)%	(.25	)%	(.49	)%
Supplemental Data:
Net assets, end of year (000)	$107,098		$74,912		$126,418		$98,888		$52,890
Portfolio turnover rate	83.55	%	125.21	%	118.74	%	153.71	%	108.55	%

^(a) Calculated using average shares outstanding during the year.

^(b) Total return assumes the reinvestment of all distributions.

See Notes to Financial Statements.

15

Notes to Financial Statements

1.    ORGANIZATION

Lord Abbett Series Fund, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company, incorporated under Maryland law in 1989. The Company consists of eight separate portfolios (the “Funds”). This report covers Growth Opportunities Portfolio (the “Fund”). The Fund is diversified as defined in the Act.

The investment objective of the Fund is capital appreciation. The Fund offers Variable Contract class shares (“Class VC Shares”) which are currently issued and redeemed only in connection with investments in, and payments under, variable annuity contracts and variable life insurance policies issued by life insurance and insurance-related companies.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

2.    SIGNIFICANT ACCOUNTING POLICIES

(a) Investment Valuation–Securities actively traded on any recognized U.S. or non-U.S. exchange or on The NASDAQ Stock Market LLC are valued at the last sale price or official closing price on the exchange or system on which they are principally traded. Events occurring after the close of trading on non-U.S. exchanges may result in adjustments to the valuation of foreign securities to more accurately reflect their fair value as of the close of regular trading on the New York Stock Exchange LLC. The Fund may rely on an independent fair valuation service in adjusting the valuations of foreign securities. Unlisted equity securities are valued at the last quoted sale price or, if no sale price is available, at the mean between the most recently quoted bid and asked prices. Securities for which market quotations are not readily available are valued at fair value as determined by management and approved in good faith by the Board of Directors. Short-term securities with 60 days or less remaining to maturity are valued using the amortized cost method, which approximates current market value.

(b) Security Transactions–Security transactions are recorded as of the date that the securities are purchased or sold (trade date). Realized gains and losses on sales of portfolio securities are calculated using the identified-cost method.

(c) Investment Income–Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis as earned. Discounts are accreted and premiums are amortized using the effective interest method. Withholding taxes on foreign dividends have been provided for in accordance with the applicable country’s tax rules and rates.

(d) Income Taxes–It is the policy of the Fund to meet the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all taxable income and capital gains to its shareholders. Therefore, no income tax provision is required.

The Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund’s U.S. federal tax returns

16

Notes to Financial Statements (continued)

remains open for the fiscal years ended December 31, 2006 through December 31, 2009. The statutes of limitations on the Company’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

(e) Expenses–Expenses incurred by the Company that do not specifically relate to an individual fund are generally allocated to the Funds within the Company on a pro rata basis by relative net assets.

(f) Repurchase Agreements–The Fund may enter into repurchase agreements with respect to securities. A repurchase agreement is a transaction in which a Fund acquires a security and simultaneously commits to resell that security to the seller (a bank or securities dealer) at an agreed-upon price on an agreed-upon date. The Fund requires at all times that the repurchase agreement be collateralized by cash, or by securities of the U.S. Government, its agencies, its instrumentalities, or U.S. Government sponsored enterprises having a value equal to, or in excess of, the value of the repurchase agreement (including accrued interest). If the seller of the agreement defaults on its obligation to repurchase the underlying securities at a time when the value of these securities has declined, a Fund may incur a loss upon disposition of the securities.

(g) Fair Value Measurements–In accordance with Financial Accounting Standards Board (“FASB”), Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures (formerly SFAS 157), fair value is defined as the price that the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. ASC 820 established a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk – for example, the risk inherent in a particular valuation technique used to measure fair value (such as a pricing model) and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below:

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

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.); and

• Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

17

Notes to Financial Statements (continued)

The following is a summary of the inputs used as of December 31, 2009 in valuing the Fund’s investments carried at value:

Investment Type*	Level 1 (000)		Level 2 (000)		Level 3 (000)		Total (000)
Common Stocks	$	105,540	$	–	$	–	$	105,540
Repurchase Agreement		–		1,784		–		1,784
Total	$	105,540	$	1,784	$	–	$	107,324

* See Schedule of Investments for values in each industry.

3.    MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Management Fee

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

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

First $1 billion	.80%
Next $1 billion	.75%
Next $1 billion	.70%
Over $3 billion	.65%

For the fiscal year ended December 31, 2009, the effective management fee, before waivers and expenses reimbursed, was at an annualized rate of .80% of the Fund’s average daily net assets.

Lord Abbett provides certain administrative services to the Fund pursuant to an Administrative Services Agreement at an annual rate of .04% of the Fund’s average daily net assets.

For the period January 1, 2009 through April 30, 2009, Lord Abbett contractually agreed to reimburse the Fund to the extent necessary so that total annual operating expenses (excluding management fee) did not exceed an annual rate of .40% of average daily net assets.

Effective May 1, 2009, Lord Abbett voluntarily agreed to waive a portion of its management fee and, if necessary, reimburse the Fund to the extent necessary so that total annual operating expenses do not exceed an annual rate of 1.20% of average daily net assets.

Lord Abbett may stop or change the level of the voluntary waiver or reimbursement at any time.

The Company, on behalf of the Fund, has entered into services arrangements with certain insurance companies. 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 the insurance company’s separate account to service and maintain the Variable Contract owners’ accounts. The Fund may also compensate certain insurance companies, third-party administrators and other entities for providing recordkeeping, sub-transfer agency and other administrative services to the Fund. For the fiscal year ended December 31, 2009, the Fund incurred expenses of $304,670 for such services arrangements, which have been included in Shareholder Servicing Expense on the Statement of Operations.

Two Directors and certain of the Company’s officers have an interest in Lord Abbett.

18

Notes to Financial Statements (continued)

4.    DISTRIBUTIONS AND CAPITAL LOSS CARRYFORWARDS

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

The tax character of distributions paid during the fiscal years ended December 31, 2009 and 2008 was as follows:

	Year Ended 12/31/09		Year Ended 12/31/08
Distributions paid from:
Ordinary income	$	–	$	258,762
Net long-term capital gains		–		1,229,305
Total distributions paid	$	–	$	1,488,067

As of December 31, 2009, the components of accumulated gains on a tax-basis were as follows:

Capital loss carryforwards*	$	(13,527,928	)
Temporary differences		(6,202	)
Unrealized gains – net		22,159,068
Total accumulated gains – net	$	8,624,938

* As of December 31, 2009, the capital loss carryforwards, along with the related expiration dates, were as follows:

2016	2017	Total
$2,929,794	$10,598,134	$13,527,928

As of December 31, 2009, the aggregate unrealized security gains and losses based on cost for U.S. federal income tax purposes were as follows:

Tax cost	$	85,165,184
Gross unrealized gain		24,170,455
Gross unrealized loss		(2,011,387	)
Net unrealized security gain	$	22,159,068

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

19

Notes to Financial Statements (continued)

Permanent items identified during the fiscal year ended December 31, 2009 have been reclassified among the components of net assets based on their tax basis treatment as follows:

Distributions in excess of Net Investment Income	Accumulated Net Realized Loss	Paid-in Capital
$258,255	$2,872	$	(261,127)

The permanent differences are attributable to the tax treatment of certain securities and net investment losses.

5.    PORTFOLIO SECURITIES TRANSACTIONS

Purchases and sales of investment securities (excluding short-term investments) for the fiscal year ended December 31, 2009 were as follows:

Purchases	Sales
$71,246,718	$72,301,943

There were no purchases or sales of U.S. Government securities for the fiscal year ended December 31, 2009.

6.    DIRECTORS’ REMUNERATION

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

7.    EXPENSE REDUCTIONS

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

8.    CUSTODIAN AND ACCOUNTING AGENT

State Street Bank and Trust Company (“SSB”) is the Company’s custodian and accounting agent. SSB performs custodial, accounting and recordkeeping functions relating to portfolio transactions and calculating the Fund’s NAV.

9.    INVESTMENT RISKS

The Fund is subject to the general risks and considerations associated with equity investing. The value of an investment will fluctuate in response to movements in the equity securities market in general, and to the changing prospects of individual companies in which the Fund invests. The Fund has particular risks associated with growth stocks. Growth companies may grow faster than other companies, which may result in more volatility in their stock prices. In addition, if the Fund’s assessment of a company’s potential for growth or market conditions is wrong, it could suffer

20

Notes to Financial Statements (concluded)

losses or produce poor performance relative to other funds, even in a rising market. The Fund invests largely in mid-sized company stocks, which may be less able to weather economic shifts or other adverse developments than larger, more established companies.

Due to its investments in multinational companies, the Fund may experience increased market, liquidity, currency, political, information, and other risks.

These factors can affect the Fund’s performance.

10.    SUMMARY OF CAPITAL TRANSACTIONS

Transactions in shares of capital stock were as follows:

	Year Ended December 31, 2009		Year Ended December 31, 2008
Shares sold	1,566,936		1,571,975
Reinvestment of distributions	–		158,474
Shares reacquired	(1,702,998	)	(1,883,566	)
Decrease	(136,062	)	(153,117	)

11.    SUBSEQUENT EVENTS

In accordance with the provisions set forth in ASC Topic 855 (formerly SFAS 165), Subsequent Events, adopted by the Fund as of December 31, 2009, management has evaluated subsequent events existing in the Fund’s financial statements through February 16, 2010. Management has determined that there were no material subsequent events that would require recognition or additional disclosure in the Fund’s financial statements through this date.

12.    RECENT ACCOUNTING PRONOUNCEMENTS

In January 2010, the FASB issued Accounting Standards Update 2010-06 “Improving Disclosures about Fair Value Measurements” (“ASU 2010-06”). ASU 2010-06 provides clarifications to existing disclosures required by ASC 820 as well as amends ASC 820 to require certain new disclosures. ASU 2010-06 is substantially effective for interim and annual reporting periods beginning after December 15, 2009. Management is currently evaluating the impact the adoption of ASU 2010-06 will have on the Fund’s financial statement disclosures.

21

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of Lord Abbett Series Fund, Inc.:

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the Growth Opportunities Portfolio, one of the portfolios constituting the Lord Abbett Series Fund, Inc. (the “Company”), as of December 31, 2009, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2009, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Growth Opportunities Portfolio of the Lord Abbett Series Fund, Inc. as of December 31, 2009, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

DELOITTE & TOUCHE LLP

New York, New York

February 16, 2010

22

Basic Information About Management

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

Lord, Abbett & Co. LLC (“Lord Abbett”), a Delaware limited liability company, is the Company’s investment adviser.

Interested Directors

The following Directors are partners of Lord Abbett and are “interested persons” of the Company as defined in the Act. Mr. Dow and Ms. Foster are officers, directors, or trustees of each of the 14 Lord Abbett-sponsored funds, which consist of 53 portfolios or series.

Name, Address and Year of Birth	Current Position and Length of Service with Company	Principal Occupation During Past Five Years	Other Directorships
Robert S. Dow Lord, Abbett & Co. LLC 90 Hudson Street Jersey City, NJ 07302 (1945)	Director since 1995, Chairman since 1996	Senior Partner (since 2007), Chief Executive Officer (since 1996) and was formerly Managing Partner (1996 – 2007), joined Lord Abbett in 1972.	N/A
Daria L. Foster Lord, Abbett & Co. LLC 90 Hudson Street Jersey City, NJ 07302 (1954)	Director since 2006	Managing Partner (since 2007) and was formerly Director of Marketing and Client Service, joined Lord Abbett in 1990.	N/A

Independent Directors

The following independent or outside Directors (“Independent Directors”) are also directors or trustees of each of the 14 Lord Abbett-sponsored funds, which consist of 53 portfolios or series.

Name, Address and Year of Birth	Current Position and Length of Service with Company	Principal Occupation During Past Five Years	Other Directorships
E. Thayer Bigelow Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1941)	Director since 1994	Managing General Partner, Bigelow Media, LLC (since 2000); Senior Adviser, Time Warner Inc. (1998 – 2000).	Currently serves as director of Crane Co. (since 1984), Huttig Building Products Inc. (since 1998) and R.H. Donnelley Inc. (since 2009).

23

Basic Information About Management (continued)

Name, Address and Year of Birth	Current Position and Length of Service with Company	Principal Occupation During Past Five Years	Other Directorships
William H.T. Bush Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1938)	Director since 1998	Co-founder and Chairman of the Board of the financial advisory firm of Bush–O’Donnell & Company (since 1986).	Currently serves as director of WellPoint, Inc., a health benefits company (since 2002).
Robert B. Calhoun, Jr. Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1942)	Director since 1998	Senior Advisor of Monitor Clipper Partners, a private equity investment fund (since 1997); President of Clipper Asset Management Corp. (1991 – 2009).	N/A
Julie A. Hill Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1946)	Director since 2004	Owner and CEO of The Hill Company, a business consulting firm (since 1998).	Currently serves as director of WellPoint, Inc., a health benefits company (since 1994) and Lend Lease Corporation Limited (since 2005).
Franklin W. Hobbs Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1947)	Director since 2001	Advisor of One Equity Partners, a private equity firm (since 2004).	Currently serves as a director and Chairman of the Board of GMAC Inc., a financial services firm (since 2009) and as a director of Molson Coors Brewing Company (since 2002).
Thomas J. Neff Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1937)	Director since 1989	Chairman of Spencer Stuart (U.S.), an executive search consulting firm (since 1996).	Currently serves as director of Ace, Ltd. (since 1997) and Hewitt Associates, Inc. (since 2004).
James L.L. Tullis Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1947)	Director since 2006	CEO of Tullis-Dickerson and Co. Inc., a venture capital management firm (since 1990).	Currently serves as director of Crane Co. (since 1998).

24

Basic Information About Management (continued)

Officers

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

Name and Year of Birth	Current Position with Company	Length of Service of Current Position	Principal Occupation During Past Five Years
Robert S. Dow (1945)	Chief Executive Officer and Chairman	Elected in 1996	Senior Partner (since 2007), Chief Executive Officer (since 1996) and was formerly Managing Partner (1996 – 2007), joined Lord Abbett in 1972.
Daria L. Foster (1954)	President	Elected in 2006	Managing Partner (since 2007) and was formerly Director of Marketing and Client Service, joined Lord Abbett in 1990.
Robert P. Fetch (1953)	Executive Vice President	Elected in 2003	Partner and Director, joined Lord Abbett in 1995.
Daniel H. Frascarelli (1954)	Executive Vice President	Elected in 2003	Partner and Director, joined Lord Abbett in 1990.
Robert I. Gerber (1954)	Executive Vice President	Elected in 2003	Partner and Chief Investment Officer (since 2007), joined Lord Abbett in 1997 as Director of Taxable Fixed Income Management.
Todd D. Jacobson (1966)	Executive Vice President	Elected in 1999	Portfolio Manager, joined Lord Abbett in 2003.
Eli M. Salzmann (1964)	Executive Vice President	Elected in 2006	Partner and Director, joined Lord Abbett in 1997.
Christopher J. Towle (1957)	Executive Vice President	Elected in 1999	Partner and Director, joined Lord Abbett in 1987.
Paul J. Volovich (1973)	Executive Vice President	Elected in 2005	Partner and Director, joined Lord Abbett in 1997.
James W. Bernaiche (1956)	Chief Compliance Officer	Elected in 2004	Partner and Chief Compliance Officer, joined Lord Abbett in 2001.
Joan A. Binstock (1954)	Chief Financial Officer and Vice President	Elected in 1999	Partner and Chief Operations Officer, joined Lord Abbett in 1999.

25

Basic Information About Management (continued)

Name and Year of Birth	Current Position with Company	Length of Service of Current Position	Principal Occupation During Past Five Years
Jeff Diamond (1960)	Vice President	Elected in 2008	Portfolio Manager, joined Lord Abbett in 2007 and was formerly a Managing Director at Axia Capital Management LLC (2004 – 2006).
John K. Forst (1960)	Vice President and Assistant Secretary	Elected in 2005	Deputy General Counsel, joined Lord Abbett in 2004.
Michael S. Goldstein (1968)	Vice President	Elected in 1999	Partner and Portfolio Manager, joined Lord Abbett in 1997.
Lawrence H. Kaplan (1957)	Vice President and Secretary	Elected in 1997	Partner and General Counsel, joined Lord Abbett in 1997.
Deepak Khanna (1963)	Vice President	Elected in 2008	Portfolio Manager, rejoined Lord Abbett in 2007 from Jennison Associates LLC (2005 – 2007). Mr. Khanna’s former experience at Lord Abbett included Senior Research Analyst – other investment strategies (2000 – 2005).
David J. Linsen (1974)	Vice President	Elected in 2008	Director and Portfolio Manager, joined Lord Abbett in 2001.
Elizabeth O. MacLean (1966)	Vice President	Elected in 2008	Partner and Portfolio Manager, joined Lord Abbett in 2006 and was formerly a Managing Director/Portfolio Manager at Nomura Corporate Research and Asset Management, Inc. (2000 – 2006).
A. Edward Oberhaus, III (1959)	Vice President	Elected in 1998	Partner and Director, joined Lord Abbett in 1983.
Todor Petrov (1974)	Vice President	Elected in 2008	Portfolio Manager, joined Lord Abbett in 2003.
Thomas R. Phillips (1960)	Vice President and Assistant Secretary	Elected in 2008	Deputy General Counsel, joined Lord Abbett in 2006 and was formerly an attorney at Morgan, Lewis & Bockius LLP.
Randy M. Reynolds (1972)	Vice President	Elected in 2008	Portfolio Manager, joined Lord Abbett in 1999.

26

Basic Information About Management (concluded)

Name and Year of Birth	Current Position with Company	Length of Service of Current Position	Principal Occupation During Past Five Years
Lawrence D. Sachs (1963)	Vice President	Elected in 2010	Partner and Portfolio Manager, joined Lord Abbett in 2001.
Lawrence B. Stoller (1963)	Vice President and Assistant Secretary	Elected in 2007	Senior Deputy General Counsel, joined Lord Abbett in 2007 and was formerly an Executive Vice President and General Counsel at Cohen & Steers Capital Management, Inc. (1999 – 2007).
Bernard J. Grzelak (1971)	Treasurer	Elected in 2003	Partner and Director of Fund Administration, joined Lord Abbett in 2003.

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

27

Approval of Advisory Contract

At meetings held on December 16 and 17, 2009, the Board, including all of the Directors who are not interested persons of the Fund or Lord, Abbett & Co. LLC. (“Lord Abbett”), considered whether to approve the continuation of the existing management agreement between the Fund and Lord Abbett. In addition to the materials the Board had reviewed throughout the course of the year, the Board received materials relating to the management agreement before the meeting and had the opportunity to ask questions and request further information in connection with its consideration. The Board also took into account its familiarity with Lord Abbett gained through its previous meetings and discussions, and the examination of the portfolio management team conducted by members of the Contract Committee during the year.

The materials received by the Board included, but were not limited to, (1) information provided by Lipper Inc. regarding the investment performance of the Fund compared to the investment performance of one or more groups of funds with substantially similar investment objectives (the “performance universe”) and to the investment performance of an appropriate securities index, (2) information on the expense ratios, effective management fee rates, and other expense components, for the Fund and one or more groups of funds with similar objectives and of similar size (the “peer group”), (3) sales and redemption information for the Fund, (4) information regarding Lord Abbett’s financial condition, (5) an analysis of the relative profitability of the management agreement to Lord Abbett, (6) information regarding the distribution arrangements of the Fund, and (7) information regarding the personnel and other resources devoted by Lord Abbett to managing the Fund.

Investment Management Services Generally. The Board considered the investment management services provided by Lord Abbett to the Fund, including investment research, portfolio management, and trading, and Lord Abbett’s commitment to compliance with all relevant legal requirements. The Board also observed that Lord Abbett was solely engaged in the investment management business and accordingly did not experience the conflicts of interest resulting from being engaged in other lines of business. The Board noted that in recent years Lord Abbett had not used brokerage commissions to purchase third-party research, but had changed this practice in 2009, as it had previously discussed with the Board. The Board considered the investment advisory services provided by Lord Abbett to other clients, the fees charged for the services, and the differences in the nature of the services provided to the Fund and other Lord Abbett Funds, on the one hand, and the services provided to other clients, on the other.

Investment Performance and Compliance. The Board reviewed the Fund’s investment performance in relation to that of the performance universe, both in terms of total return and in terms of other statistical measures. The Board observed that the investment performance of the Fund was in the third quintile of its performance universe for the nine-month period, in the first quintile for the one-year and three-year periods, and in the second quintile for the five-year period. The Board also observed that the Fund’s investment performance was lower than that of the Lipper Variable Underlying Funds Mid-Cap Growth Index for the nine-month period and higher than that of the Index for the one-year, three-year, and five-year periods. The Board also noted that the Fund’s investment objective, strategy, and investment team were identical to those of Lord Abbett Research Fund, Inc.—Growth Opportunities Fund and the investment performance of the Class A shares of Growth Opportunities Fund was in the second quintile of its performance universe and higher than that of the relevant index for the ten-year period.

28

Lord Abbett’s Personnel and Methods. The Board considered the qualifications of the personnel providing investment management services to the Fund, in light of its investment objective and discipline. Among other things, the Board considered the size, experience, and turnover of Lord Abbett’s investment management staff, Lord Abbett’s investment methodology and philosophy, and Lord Abbett’s approach to recruiting, training, and retaining investment management personnel. The Board observed that Lord Abbett had made significant changes in recent years to the management personnel responsible for the Fund, in that in 2006 it had hired Rick Ruvkun to be a portfolio manager for the Fund, and in July 2008 it had named Mr. Ruvkun Director of Large and Mid Cap Research, with Paul J. Volovich taking over Mr. Ruvkun’s role as portfolio manager for the Fund, assisted by David J. Linsen. The Board determined that Lord Abbett had the expertise and resources to manage the Fund effectively.

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

Expenses. The Board considered the expense levels of the Fund and the expense levels of the peer group. The Board considered the fiscal periods on which the peer group information was based, and noted that such periods ended before September 30, 2009. The Board noted that the expense levels of the peer group likely would have been different for periods ending September 30, 2009, due to the lower asset levels prevailing in the mutual fund industry during much of 2009. The Board also observed that the Fund’s transfer agency expenses were likely to decrease in 2010, as a result of renegotiation of the transfer agency agreement. It also considered the amount and nature of the fees paid by shareholders. The Board noted that it and Lord Abbett had agreed to an expense reimbursement agreement through April 30, 2009 that limited all expenses other than management fees to 0.40%, but that Lord Abbett had not entered into a new agreement, and instead had made voluntary reimbursements that had the effect of keeping the total expense ratio at 1.20%, which reimbursements it could end at any time. The Board observed that for the nine months ended September 30, 2009 (annualized) the contractual management and administrative services fee rates were approximately four basis points above the median of the peer group and the actual management and administrative services fee rates were approximately five basis points above the median of the peer group. The Board observed that for the nine months ended September 30, 2009 (annualized) the total expense ratio of the Fund was approximately one basis point below the median of the peer group. The Board also considered that Lord Abbett voluntarily intended to waive its management fee and/or administrative service fee and/or voluntarily reimburse expenses to maintain the current expense ratio, and considered what the Fund’s expense ratio likely would be if Lord Abbett did not voluntarily waive its fees or reimburse any expenses and how that expense ratio would compare to that of the peer group.

Profitability. The Board considered the level of Lord Abbett’s profits in managing the Fund, including a review of Lord Abbett’s methodology for allocating its costs to its management of the Fund. The Board concluded that the allocation methodology had a reasonable basis and was appropriate. It considered any profits realized by Lord Abbett in connection with the operation of the Fund and whether the amount of profit was fair for the management of the Fund. The Board also considered the profits realized from other businesses of Lord Abbett, which may benefit from or be related to the Fund’s business. The Board considered Lord Abbett’s profit margins in comparison with available industry data, both accounting for and ignoring marketing and distribution expenses, and how those profit margins could affect Lord Abbett’s ability to recruit and retain investment personnel. The Board recognized that Lord Abbett’s profitability was a factor in

29

enabling it to attract and retain qualified investment management personnel to provide services to the Fund. The Board noted that Lord Abbett’s overall profitability had decreased in its 2009 fiscal year, largely due to declines in market prices and shareholder redemptions. The Board concluded that Lord Abbett’s profitability overall and as to the Fund was not excessive.

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

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

Alternative Arrangements. The Board considered whether, instead of approving continuation of the management agreement, it might be in the best interests of the Fund to implement one or more alternative arrangements, such as continuing to employ Lord Abbett, but on different terms.

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

30

Householding

The 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 need additional copies or do not want your mailings to be “householded,” please call Lord Abbett at 888-522-2388 or send a written request with your name, the name of your fund or funds and your account number or numbers to Lord Abbett Family of Funds, P.O. Box 219336, Kansas City, MO 64121.

Proxy Voting Policies, Procedures and Records

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

Shareholder Reports and Quarterly Portfolio Disclosure

The Fund is required to file its complete schedule of portfolio holdings with the SEC for its first and third fiscal quarters on Form N-Q. Copies of the filings are available without charge, upon request on the SEC’s Website at www.sec.gov and may be available by calling Lord Abbett at 888-522-2388. You can also obtain copies of Form N-Q by (i) visiting the SEC’s Public Reference Room in Washington, DC (information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330); (ii) sending your request and duplicating fee to the SEC’s Public Reference Section, Washington, DC 20549-1520; or (iii) sending your request electronically, after paying a duplicating fee, to publicinfo@sec.gov.

31

This report, when not used for the general information of shareholders of the Fund, is to be distributed only if preceded or accompanied by a current fund prospectus.

Lord Abbett mutual fund shares are distributed by LORD ABBETT DISTRIBUTOR LLC.

Lord Abbett Series Fund, Inc.

Growth Opportunities Portfolio

LASFGO-2-1209

(02/10)

2009

LORD ABBETT

ANNUAL

REPORT    

Lord Abbett

Series Fund—International Portfolio

For the fiscal year ended December 31, 2009

Lord Abbett Series Fund — International Portfolio

Annual Report

For the fiscal year ended December 31, 2009

From left to right: Robert S. Dow, Director and Chairman of the Lord Abbett Funds; E. Thayer Bigelow, Independent Lead Director of the Lord Abbett Funds; and Daria L. Foster, Director and President of the Lord Abbett Funds.

Dear Shareholders: We are pleased to provide you with this overview of the Lord Abbett Series Fund—International Portfolio’s performance for the fiscal year ended December 31, 2009. On this page and the following pages, we discuss the major factors that influenced performance. For detailed and more timely information about the Fund, please visit our Website at www.lordabbett.com, where you also can access the quarterly commentaries by the Fund’s portfolio manager.

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

Best regards,

Robert S. Dow

Chairman

Q: What were the overall market conditions during the fiscal year ended December 31, 2009?

A: After a difficult start to the year, foreign equity markets (as measured by the MSCI EAFE^® Index with Gross Dividends¹) outperformed domestic equity markets (as represented by the S&P 500^® Index²) for the 12-month period. However, improvements in both foreign and domestic markets enabled some investors to recover a portion of their previous losses.

Q: How did the International Portfolio perform during the fiscal year ended December 31, 2009?

A: The Fund returned 47.87%, reflecting performance at the net asset value (NAV) of Class VC shares, with all distributions reinvested, compared to its benchmark, the S&P Developed Ex-U.S. Small Cap Index,³ which had a total return of 45.07% in the same period.

Q: What were the most significant factors affecting performance?

A: The most significant contributors to the Fund’s performance relative to its

1

benchmark for the 12-month period were the financials and the industrials sectors.

Among the individual holdings that contributed to the Fund’s relative performance were financials holdings Azimut Holding SpA, an Italian investment management services firm and Megaworld Corp., a Philippines-based operator and marketer of real estate and hotel businesses; and industrials holding Rheinmetall AG, a German automotive, electronics, defense, and engineering group.

The most significant detractors from the Fund’s performance relative to its benchmark for the 12-month period were the healthcare and the information technology sectors.

Among the individual holdings that detracted from performance were healthcare holdings Hogy Medical Co., Ltd., a Japanese manufacturer of medical supply and related products, and Fresenius SE, a worldwide provider of kidney dialysis services, equipment and products; and information technology holding Capcom Co., Ltd., a Japanese developer of video game software.

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

¹  The MSCI EAFE^® Index with Gross Dividends is an unmanaged index that reflects the stock markets of 21 countries, including Europe, Australasia, and the Far East, with values expressed in U.S. dollars. 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. MSCI uses withholding tax rates applicable to Luxembourg holding companies, as Luxembourg applies the highest rates.

²  The S&P 500^® Index is widely regarded as the standard for measuring large cap U.S. stock market performance and includes a representative sample of leading companies in leading industries.

³  The S&P Developed Ex-U.S. Small Cap Index is the Small Cap and Developed Markets component of S&P’s Global Broad Market Index (BMI). The S&P Global BMI is a comprehensive, rules-based index designed to measure global stock market performance. The index covers all publicly listed equities with float adjusted market values of US$ 100 million or more and annual dollar value traded of at least US$ 50 million in all included countries. The S&P Global BMI is made up of the S&P Developed BMI and the S&P Emerging BMI indexes.

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

Important Performance and Other Information

Performance data quoted 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 www.lordabbett.com.

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

The views of the Fund’s management and the portfolio holdings described in this report are as of December 31, 2009; these views and portfolio holdings may have changed subsequent to this date, and they do not guarantee the future performance of the markets or the Fund. Information provided in this

2

report should not be considered a recommendation to purchase or sell securities.

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

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

The Fund serves as an underlying investment vehicle for variable annuity contracts and variable life insurance policies.

3

Investment Comparison

Below is a comparison of a $10,000 investment in Class VC shares with the same investment in the S&P Developed Ex-U.S. SmallCap^® Index, assuming reinvestment of all dividends and distributions. The Fund’s shares are sold only to insurance company separate accounts that fund certain variable annuity and variable life contracts. This line graph comparison does not reflect the sales charges or other expenses of these contracts. If those sales charges and expenses were reflected, returns would be less. The graph and performance table below do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. During certain periods, expenses of the Fund have been waived or reimbursed by Lord Abbett; without such waiver or reimbursement of expenses, the Fund’s returns would have been lower. Past performance is no guarantee of future results.

Average Annual Total Returns for the

Periods Ended December 31, 2009

	1 Year	5 Years	10 Years
Class VC	47.87%	4.17%	-0.56%

¹    Performance for the unmanaged index does not reflect transaction costs, management fees or sales charges. The performance of the index is not necessarily representative of the Fund’s performance.

4

Expense Example

As 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 ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2009 through December 31, 2009).

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 products that invest in the Fund, are not reflected in this Example. If such fees and expenses were reflected in the Example, the total expenses shown would be higher. Fees and expenses regarding such variable insurance products are separately described in the prospectus related to those products.

Actual Expenses

The first line of the table on the following page provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading titled “Expenses Paid During the Period 7/1/09 – 12/31/09” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

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

5

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

	Beginning Account Value		Ending Account Value		Expenses Paid During the Period†
	7/1/09		12/31/09		7/1/09 - 12/31/09
Class VC
Actual	$	1,000.00	$	1,223.70	$	6.73
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.16	$	6.11

^† 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 184/365 (to reflect one-half year period).

Portfolio Holdings Presented by Sector

December 31, 2009

Sector*	%**
Basic Materials	8.71%
Conglomerates	1.40%
Consumer Cyclical	24.56%
Consumer Non-Cyclical	8.65%
Diversified Financials	5.32%
Energy	4.50%
Healthcare	6.80%
Industrial Goods & Services	17.95%
Non-Property Financials	3.49%
Property & Property Services	2.99%
Technology	4.95%
Telecommunications	0.50%
Transportation	2.32%
Utilities	5.16%
Short-Term Investment	2.70%
Total	100.00%

* A sector may comprise several industries.

** Represents percent of total investments.

6

Schedule of Investments

December 31, 2009

Investments	Shares	U.S. $ Value (000)
LONG-TERM INVESTMENTS 96.35%
COMMON STOCKS 94.04%
Australia 5.57%
Chemicals 1.31%
Incitec Pivot Ltd.	182,170	$	576
Mining & Metals 1.69%
Lihir Gold Ltd.	80,826		236
MacArthur Coal Ltd.	50,787		510
			746
Non-Oil Energy 0.00%
South Australian Coal Ltd.	13,027		1
Oil & Gas 1.04%
Centennial Coal Co., Ltd.	128,081		456
Retail 0.46%
Myer Holdings Ltd.*	62,413		204
Utilities & Infrastructure 1.07%
DUET Group	292,692		469
Total Australia			2,452
Austria 1.41%
Leisure & Recreation
bwin Interactive Entertainment AG*	10,426		621
Brazil 2.37%
Consumer Building 0.33%
Gafisa SA	8,800		143
Consumer Durables 1.89%
Agra Empreendimentos Imobiliarios SA	204,706		587
Brookfield Incorporacoes SA	54,800		246
			833

Investments	Shares	U.S. $ Value (000)
Retail 0.15%
Restoque Comercio e Confeccoes de Roupas SA	17,995	$	67
Total Brazil			1,043
Canada 1.61%
Mining & Metals
Equinox Minerals Ltd.*	180,700		707
China 2.13%
Food & Drink 1.25%
Zhongpin, Inc.*	35,412		553
Internet Companies 0.88%
Sohu.com, Inc.*	6,743		386
Total China			939
Egypt 1.55%
Autos & Auto Parts 0.40%
Ghabbour Auto*	39,232		175
Diversified Financials 0.37%
EFG-Hermes Holding SAE	36,064		164
Leisure & Recreation 0.78%
Orascom Development Holding AG*	105,520		345
Total Egypt			684
France 1.69%
Computer Hardware 0.63%
Gemalto NV*	6,307		274
Media 1.06%
Ipsos SA	7,874		238
Publicis Groupe	5,624		229
			467
Total France			741

See Notes to Financial Statements.

7

Schedule of Investments (continued)

December 31, 2009

Investments	Shares	U.S. $ Value (000)
Germany 8.54%
Chemicals 1.25%
Symrise GmbH & Co. AG	25,754	$	549
Diversified Industrial Goods & Services 3.55%
Hamburger Hafen und Logistik AG	7,365		284
Kloeckner & Co. SE*	22,263		564
Rheinmetall AG	11,224		713
			1,561
Electrical Equipment 0.71%
Tognum AG	18,820		312
Engineering & Capital Goods 0.50%
MAN SE	2,837		220
Healthcare Facilities 1.36%
Gerresheimer AG	17,807		600
Retail 1.17%
Adidas AG	9,547		517
Total Germany			3,759
Greece 2.35%
Banks & Financial Services 0.39%
Hellenic Exchanges SA	16,572		172
Leisure & Recreation 0.80%
Intralot SA-Integrated Lottery Systems & Services	60,046		351
Retail 1.16%
Jumbo SA	40,297		510
Total Greece			1,033
Hong Kong 4.52%
Autos & Auto Parts 1.18%
Minth Group Ltd.	354,000		520

Investments	Shares	U.S. $ Value (000)
Communications Equipment 0.69%
VTech Holdings Ltd.	32,000	$	305
Leisure & Recreation 1.82%
REXLot Holdings Ltd.	7,175,000		799
Retail 0.83%
Daphne International Holdings Ltd.	456,000		366
Total Hong Kong			1,990
Indonesia 0.67%
Property (Excluding Services)
PT Bakrieland Development Tbk*	8,939,000		183
PT Ciputra Development Tbk*	2,163,151		112
Total Indonesia			295
Ireland 1.26%
Food & Drink 0.81%
C&C Group plc	82,578		356
Healthcare Products & Supplies 0.45%
United Drug plc	64,376		197
Total Ireland			553
Italy 8.09%
Aerospace & Defense 1.11%
Finmeccanica SpA	30,505		488
Diversified Financials 1.55%
Azimut Holding SpA	51,058		683
Food & Drink 2.26%
Davide Campari-Milano SpA	54,522		570
Parmalat SpA	151,910		425
			995

See Notes to Financial Statements.

8

Schedule of Investments (continued)

December 31, 2009

Investments	Shares	U.S. $ Value (000)
Italy (continued)
Surface Transportation 1.01%
Ansaldo STS SpA	23,402	$	446
Utilities & Infrastructure 2.16%
Hera SpA	186,458		432
Terna-Rete Elettrica Nationale SpA	120,150		517
			949
Total Italy			3,561
Japan 19.89%
Chemicals 2.77%
JSR Corp.	28,700		584
Sumitomo Chemical Co., Ltd.	57,000		250
ZEON Corp.	85,000		384
			1,218
Communications Equipment 0.79%
Hitachi Kokusai Electric, Inc.	40,000		349
Consumer Durables 1.57%
Makita Corp.	20,100		690
Diversified Consumer Cyclicals 1.08%
Benesse Corp.	11,400		477
Electronics 1.54%
Axell Corp.	6,000		211
IBIDEN Co., Ltd.	13,000		466
			677
Engineering & Capital Goods 1.04%
Sumitomo Heavy Industries Ltd.*	90,000		456
General Manufacturing & Services 3.81%
FP Corp.	11,500		519
Nifco, Inc.	22,700		453

Investments	Shares	U.S. $ Value (000)
Nippon Electric Glass Co., Ltd.	51,000	$	702
			1,674
Healthcare Products & Supplies 2.96%
Hogy Medical Co., Ltd.	8,100		393
Medipal Holdings Corp.	31,600		392
Rohto Pharmaceutical Co., Ltd.	17,000		196
Shionogi & Co., Ltd.	14,800		321
			1,302
Leisure & Recreation 0.55%
Pacific Golf Group International Holdings KK	356		243
Property (Excluding Services) 0.92%
Japan Prime Realty Investment Corp. REIT	94		195
United Urban Investment Corp. REIT	40		211
			406
Retail 2.37%
Isetan Mitsukoshi Holdings Ltd.	35,792		323
K’s Holdings Corp.	13,700		411
Nitori Co., Ltd.	4,150		309
			1,043
Telecommunications Services 0.49%
Okinawa Cellular Telephone Co.	129		216
Total Japan			8,751
Kazakhstan 1.13%
Oil & Gas
KazMunaiGas Exploration Production GDR	20,100		498

See Notes to Financial Statements.

9

Schedule of Investments (continued)

December 31, 2009

Investments	Shares	U.S. $ Value (000)
Mexico 1.12%
Engineering & Construction
Empresas ICA SAB de CV*	210,345	$	490
Netherlands 0.56%
Electrical Equipment
Draka Holding NV*	12,876		246
Philippines 2.12%
Diversified Financials 0.75%
Metropolitan Bank & Trust	342,000		331
Property Services 1.37%
Megaworld Corp.	18,930,000		603
Total Philippines			934
Spain 4.86%
Food & Drink 2.54%
Ebro Puleva SA	33,478		696
Viscofan SA	16,648		423
			1,119
General Manufacturing & Services 1.54%
Prosegur Compania de Seguridad SA Registered Shares	13,847		678
Utilities & Infrastructure 0.78%
Red Electrica Corporacion SA	6,144		343
Total Spain			2,140
Sweden 1.08%
Consumer Non-Durables 0.56%
Axfood AB	8,433		246
Non-Property Financials 0.52%
Swedbank AB Class A*	23,327		230
Total Sweden			476

Investments	Shares	U.S. $ Value (000)
Switzerland 1.18%
Diversified Financials 0.83%
EFG International AG	26,616	$	365
Healthcare Products & Supplies 0.35%
Lonza Group AG Registered Shares	2,188		154
Total Switzerland			519
Taiwan 0.52%
Diversified Financials
iShares MSCI Taiwan Index Fund ETF	17,754		230
Thailand 2.05%
Banks & Financial Services 0.81%
Bangkok Bank Public Co., Ltd.	102,233		358
Diversified Financials 1.24%
Tisco Financial Group Public Co., Ltd.	753,200		545
Total Thailand			903
United Kingdom 17.77%
Aerospace & Defense 1.44%
Cobham plc	156,887		634
Air Transportation 1.29%
easyJet plc*	99,760		566
Comprehensive 1.38%
Tomkins plc	195,634		608
Computer Software 0.37%
Micro Focus International plc	22,488		164
Consumer Building 1.00%
Bellway plc	33,517		442

See Notes to Financial Statements.

10

Schedule of Investments (concluded)

December 31, 2009

Investments	Shares	U.S. $ Value (000)
United Kingdom (continued)
Electrical Equipment 0.30%
Ceres Power Holdings plc*	51,000	$	131
Engineering & Construction 1.10%
Babcock International Group plc	50,703		486
Food & Drink 1.14%
Britvic plc	76,322		500
General Manufacturing & Services 1.01%
Intertek Group plc	22,022		445
Healthcare Facilities 0.42%
Southern Cross Healthcare Ltd.*	81,976		183
Leisure & Recreation 2.66%
PartyGaming plc*	108,911		455
Sportingbet plc*	263,206		289
TUI Travel plc	104,411		428
			1,172
Non-Property Financials 1.73%
Schroders plc	35,708		763
Oil & Gas 2.29%
Dana Petroleum plc*	10,693		202
Dragon Oil plc*	82,928		518
Premier Oil plc*	16,130		287
			1,007
Retail 1.64%
HMV Group plc	181,077		271
Marks & Spencer Group plc	69,473		449
			720
Total United Kingdom			7,821
Total Common Stocks (cost $34,530,557)			41,386

Investments	Shares		U.S. $ Value (000)
PREFERRED STOCKS 2.31%
Brazil 1.11%
Utilities & Infrastructure
Companhia de Transmissao de Energia Eletrica Paulista		16,373	$	487
Germany 1.20%
Healthcare Products & Supplies
Fresenius SE		7,380		530
Total Preferred Stocks (cost $793,894)				1,017
Total Long-Term Investments (cost $35,324,451)				42,403
	Principal Amount (000)		Value (000)
SHORT-TERM INVESTMENT 2.67%
Repurchase Agreement
Repurchase Agreement dated 12/31/2009, Zero Coupon due 1/4/2010 with Fixed Income Clearing Corp. collateralized by $1,195,000 of Federal Home Loan Bank at 0.95% due 11/30/2010; value: $1,200,975; proceeds: $1,175,578 (cost $1,175,578)	$	1,176		1,176
Total Investments in Securities 99.02% (cost $36,500,029)				43,579
Foreign Cash and Other Assets in Excess of Liabilities 0.98%				431
Net Assets 100.00%			$	44,010

ETF Exchange Traded Fund.

GDR Global Depositary Receipt.

REIT Real Estate Investment Trust.

* Non-income producing security.

See Notes to Financial Statements.

11

Statement of Assets and Liabilities

December 31, 2009

ASSETS:
Investments in securities, at value (cost $36,500,029)	$	43,579,131
Foreign cash, at value (cost $502,749)		512,462
Receivables:
Interest and dividends		93,177
Capital shares sold		18,720
From advisor (See Note 3)		17,586
Prepaid expenses		394
Total assets		44,221,470
LIABILITIES:
Payables:
Investment securities purchased		38,935
Capital shares reacquired		27,123
Management fee		26,513
Directors’ fees		2,367
Fund administration		1,416
Accrued expenses and other liabilities		114,830
Total liabilities		211,184
NET ASSETS	$	44,010,286
COMPOSITION OF NET ASSETS:
Paid-in capital	$	48,316,447
Distributions in excess of net investment income		(304,475	)
Accumulated net realized loss on investments and foreign currency related transactions		(11,090,369	)
Net unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies		7,088,683
Net Assets	$	44,010,286
Outstanding shares (50 million shares of common stock authorized, $.001 par value)		6,047,709
Net asset value, offering and redemption price per share (Net assets divided by outstanding shares)		$7.28

See Notes to Financial Statements.

12

Statements of Operations

For the Year Ended December 31, 2009

Investment income:
Dividends (net of foreign withholding taxes of $71,731)	$	705,619
Interest and other		10,597
Total investment income		716,216
Expenses:
Management fee		243,764
Shareholder servicing		92,173
Custody		75,872
Reports to shareholders		44,463
Professional		42,297
Fund administration		13,001
Directors’ fees		940
Other		1,185
Gross expenses		513,695
Expense reductions (See Note 7)		(63	)
Management fees waived and expenses reimbursed (See Note 3)		(137,481	)
Net expenses		376,151
Net investment income		340,065
Net realized and unrealized gain (loss):
Net realized loss on investments and foreign currency related transactions (net of foreign capital gains tax)		(501,558	)
Net change in unrealized appreciation/depreciation on investments and translation of assets and liabilities denominated in foreign currencies		13,499,072
Net realized and unrealized gain		12,997,514
Net Increase in Net Assets Resulting From Operations	$	13,337,579

See Notes to Financial Statements.

13

Statements of Changes in Net Assets

INCREASE (DECREASE) IN NET ASSETS	For the Year Ended December 31, 2009			For the Year Ended December 31, 2008
Operations:
Net investment income	$	340,065		$	336,724
Net realized loss on investments and foreign currency related transactions (net of foreign capital gains tax)		(501,558	)		(10,643,155	)
Net change in unrealized appreciation/depreciation on investments and translation of assets and liabilities denominated in foreign currencies		13,499,072			(7,500,106	)
Net increase (decrease) in net assets resulting from operations		13,337,579			(17,806,537	)
Distributions to shareholders from:
Net investment income		(580,563	)		(198,465	)
Net realized gain		—			(808,752	)
Total distributions to shareholders		(580,563	)		(1,007,217	)
Capital share transactions (See Note 10):
Proceeds from sales of shares		18,840,756			14,193,044
Reinvestment of distributions		580,563			1,007,215
Cost of shares reacquired		(9,762,520	)		(8,754,752	)
Net increase in net assets resulting from capital share transactions		9,658,799			6,445,507
Net increase (decrease) in net assets		22,415,815			(12,368,247	)
NET ASSETS:
Beginning of year	$	21,594,471		$	33,962,718
End of year	$	44,010,286		$	21,594,471
Distributions in excess of net investment income	$	(304,475	)	$	(20,439	)

See Notes to Financial Statements.

14

Financial Highlights

	Year Ended 12/31
	2009		2008		2007		2006		2005
Per Share Operating Performance
Net asset value, beginning of year	$4.99		$10.83		$11.89		$10.43		$8.56
Investment operations:
Net investment income(a)	.06		.10		.08		.10		.01
Net realized and unrealized gain (loss)	2.33		(5.69	)	.44		2.91		2.26
Total from investment operations	2.39		(5.59	)	.52		3.01		2.27
Distributions to shareholders from:
Net investment income	(.10	)	(.05	)	(.11	)	(.05	)	–
Net realized gain	–		(.20	)	(1.47	)	(1.50	)	(.40	)
Total distributions	(.10	)	(.25	)	(1.58	)	(1.55	)	(.40	)
Net asset value, end of year	$7.28		$4.99		$10.83		$11.89		$10.43
Total Return(b)	47.87	%	(51.53	)%	4.73	%	29.08	%	26.63	%
Ratios to Average Net Assets:
Expenses, excluding expense reductions and including management fees waived and expenses reimbursed	1.15	%	1.06	%	1.15	%	1.15	%	1.40	%
Expenses, including expense reductions, management fees waived and expenses reimbursed	1.15	%	1.06	%	1.15	%	1.15	%	1.40	%
Expenses, excluding expense reductions, management fees waived and expenses reimbursed	1.58	%	1.53	%	1.36	%	1.65	%	2.41	%
Net investment income	1.04	%	1.31	%	.67	%	.87	%	.14	%
Supplemental Data:
Net assets, end of year (000)	$44,010		$21,594		$33,963		$28,093		$12,571
Portfolio turnover rate	104.65	%	123.71	%	106.30	%	98.50	%	70.54	%

^(a) Calculated using average shares outstanding during the year.

^(b) Total return assumes the reinvestment of all distributions.

See Notes to Financial Statements.

15

Notes to Financial Statements

1.    ORGANIZATION

Lord Abbett Series Fund, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company, incorporated under Maryland law in 1989. The Company consists of eight separate portfolios (the “Funds”). This report covers International Portfolio (the “Fund”). The Fund is diversified as defined in the Act.

The investment objective of the Fund is long-term capital appreciation. The Fund offers Variable Contract class shares (“Class VC Shares”) which are currently issued and redeemed only in connection with investments in, and payments under, variable annuity contracts and variable life insurance policies issued by life insurance and insurance-related companies.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

2.    SIGNIFICANT ACCOUNTING POLICIES

(a) Investment Valuation–Securities actively traded on any recognized U.S. or non-U.S. exchange or on The NASDAQ Stock Market LLC are valued at the last sale price or official closing price on the exchange or system on which they are principally traded. Events occurring after the close of trading on non-U.S. exchanges may result in adjustments to the valuation of foreign securities to more accurately reflect their fair value as of the close of regular trading on the New York Stock Exchange LLC. The Fund may rely on an independent fair valuation service in adjusting the valuations of foreign securities. Unlisted equity securities are valued at the last quoted sale price or, if no sale price is available, at the mean between the most recently quoted bid and asked prices. Securities for which market quotations are not readily available are valued at fair value as determined by management and approved in good faith by the Board of Directors. Short-term securities with 60 days or less remaining to maturity are valued using the amortized cost method, which approximates current market value.

(b) Security Transactions–Security transactions are recorded as of the date that the securities are purchased or sold (trade date). Realized gains and losses on sales of portfolio securities are calculated using the identified-cost method.

(c) Investment Income–Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis as earned. Discounts are accreted and premiums are amortized using the effective interest method. Withholding taxes on foreign dividends have been provided for in accordance with the applicable country’s tax rules and rates.

(d) Income Taxes–It is the policy of the Fund to meet the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all taxable income and capital gains to its shareholders. Therefore, no income tax provision is required.

The Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund’s U.S. federal tax returns remains open for the fiscal years ended December 31, 2006 through December 31, 2009. The

16

Notes to Financial Statements (continued)

statutes of limitations on the Company’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

(e) Expenses–Expenses incurred by the Company that do not specifically relate to an individual fund are generally allocated to the Funds within the Company on a pro rata basis by relative net assets.

(f) Foreign Transactions–The books and records of the Fund are maintained in U.S. dollars and transactions denominated in foreign currencies are recorded in the Fund’s records at the rate prevailing when earned or recorded. Asset and liability accounts that are denominated in foreign currencies are adjusted daily to reflect current exchange rates and any unrealized gain (loss) is included in Net change in unrealized appreciation/depreciation on investments and translation of assets and liabilities denominated in foreign currencies on the Fund’s Statement of Operations. The resultant exchange gains and losses upon settlement of such transactions are included in Net realized loss on investments and foreign currency related transactions on the Fund’s Statement of Operations. The Fund does not isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the changes in market prices of the securities.

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

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

(h) Repurchase Agreements–The Fund may enter into repurchase agreements with respect to securities. A repurchase agreement is a transaction in which a Fund acquires a security and simultaneously commits to resell that security to the seller (a bank or securities dealer) at an agreed-upon price on an agreed-upon date. The Fund requires at all times that the repurchase agreement be collateralized by cash, or by securities of the U.S. Government, its agencies, its instrumentalities, or U.S. Government sponsored enterprises having a value equal to, or in excess of, the value of the repurchase agreement (including accrued interest). If the seller of the agreement defaults on its obligation to repurchase the underlying securities at a time when the value of these securities has declined, a Fund may incur a loss upon disposition of the securities.

17

Notes to Financial Statements (continued)

(i) Fair Value Measurements–In accordance with Financial Accounting Standards Board (“FASB”), Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures (formerly SFAS 157), fair value is defined as the price that the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. ASC 820 established a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk – for example, the risk inherent in a particular valuation technique used to measure fair value (such as a pricing model) and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below:

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

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.); and

• Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of December 31, 2009 in valuing the Fund’s investments carried at value:

Investment Type*	Level 1 (000)		Level 2 (000)		Level 3 (000)		Total (000)
Common Stocks	$	4,503	$	36,882	$	1	$	41,386
Preferred Stocks		487		530		–		1,017
Repurchase Agreement		–		1,176		–		1,176
Total	$	4,990	$	38,588	$	1	$	43,579

* See Schedule of Investments for values in each industry.

The following is a reconciliation of investment for unobservable inputs (Level 3) that were used in determining fair value:

Investment Type

Balance as of January 1, 2009 (000)

Accrued Discounts/ Premiums (000)

Realized Gain (loss) (000)

Change in Unrealized Appreciation/ Depreciation (000)

Net Purchase (Sales) (000)

Net Transfers In or Out of Level 3 (000)

Balance as of December 31, 2009 (000)

Common Stock

$

–

$

–

$

–

$

–

*

$

1

$

–

$

1

* Amount is less than $1,000.

18

Notes to Financial Statements (continued)

3.    MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Management Fee

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

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

First $1 billion	.75%
Next $1 billion	.70%
Over $2 billion	.65%

For the fiscal year ended December 31, 2009, the effective management fee, before waivers and expenses reimbursed, was at an annualized rate of .75% of the Fund’s average daily net assets.

Lord Abbett provides certain administrative services to the Fund pursuant to an Administrative Services Agreement at an annual rate of .04% of the Fund’s average daily net assets.

For the period January 1, 2009 through April 30, 2009, Lord Abbett contractually agreed to reimburse the Fund to the extent necessary so that total annual operating expenses (excluding management fee) did not exceed an annual rate of .25% of average daily net assets.

Effective May 1, 2009, Lord Abbett voluntarily agreed to waive a portion of its management fee and, if necessary, reimburse the Fund to the extent necessary so that total annual operating expenses do not exceed an annual rate of 1.20% of average daily net assets.

Lord Abbett may stop or change the level of the voluntary waiver or reimbursement at any time.

The Company, on behalf of the Fund, has entered into services arrangements with certain insurance companies. 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 the insurance company’s separate account to service and maintain the Variable Contract owners’ accounts. The Fund may also compensate certain insurance companies, third-party administrators and other entities for providing recordkeeping, sub-transfer agency and other administrative services to the Fund. For the fiscal year ended December 31, 2009, the Fund incurred expenses of $80,320 for such services arrangements, which have been included in Shareholder Servicing Expense on the Statement of Operations.

Two Directors 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 annually. Taxable net realized gains from investment transactions, reduced by capital loss carryforwards, if any, are declared and distributed to shareholders at least annually. The capital loss carryforward amount, if any, is available to offset future net capital gains. Dividends and distributions to shareholders are recorded on the ex-dividend date. The amounts of dividends and distributions from net investment income and net realized capital gains are determined in accordance with federal income tax regulations which may differ from accounting principles generally accepted in the United States of

19

Notes to Financial Statements (continued)

America. These book/tax differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the components of net assets based on their federal tax basis treatment; temporary differences do not require reclassification. Dividends and distributions, which exceed earnings and profits for tax purposes, are reported as a tax return of capital.

The tax character of distributions paid during the fiscal years ended December 31, 2009 and 2008 was as follows:

	Year Ended 12/31/2009		Year Ended 12/31/2008
Distributions paid from:
Ordinary income	$	580,563	$	290,999
Net long-term capital gains		—		716,218
Total distributions paid	$	580,563	$	1,007,217

As of December 31, 2009, the components of accumulated losses on a tax-basis were as follows:

Undistributed ordinary income – net	$	122,210
Total undistributed earnings	$	122,210
Capital loss carryforwards*		(9,390,110	)
Temporary differences		(120,878	)
Unrealized gains – net		5,082,617
Total accumulated losses – net	$	(4,306,161	)

* As of December 31, 2009, the capital loss carryforwards, along with the related expiration dates, were as follows:

2016	2017	Total
$6,556,266	$2,833,844	$9,390,110

Certain losses incurred after October 31 (“Post-October losses”) within the taxable year are deemed to arise on the first business day of the Fund’s next taxable year. The Fund incurred and will elect to defer net capital losses of $94,595 and net ordinary losses of $23,916 during fiscal 2009.

As of December 31, 2009, the aggregate unrealized security gains and losses based on cost for U.S. federal income tax purposes were as follows:

Tax cost	$	38,506,095
Gross unrealized gain		5,998,104
Gross unrealized loss		(925,068	)
Net unrealized security gain	$	5,073,036

The difference between book-basis and tax-basis unrealized gains (losses) is attributable to the tax treatment of certain foreign securities and wash sales.

Permanent items identified during the fiscal year ended December 31, 2009 have been reclassified among the components of net assets based on their tax basis treatment as follows:

Distributions in Excess of Net Investment Income	Accumulated Net Realized Loss
$(43,538)	$	43,538

20

Notes to Financial Statements (continued)

The permanent differences are attributable to the tax treatment of foreign currency transactions and certain foreign securities.

5.    PORTFOLIO SECURITIES TRANSACTIONS

Purchases and sales of investment securities (excluding short-term investments) for the fiscal year ended December 31, 2009 were as follows:

Purchases	Sales
$41,932,498	$	31,978,946

There were no purchases or sales of U.S. Government securities for the fiscal year ended December 31, 2009.

6.    DIRECTORS’ REMUNERATION

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

7.    EXPENSE REDUCTIONS

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

8.    CUSTODIAN AND ACCOUNTING AGENT

State Street Bank and Trust Company (“SSB”) is the Company’s custodian and accounting agent. SSB performs custodial, accounting and recordkeeping functions relating to portfolio transactions and calculating the Fund’s NAV.

9.    INVESTMENT RISKS

The Fund is subject to the general risks and considerations associated with equity investing. These include the risks of investing in equity markets in foreign countries, the risk of investing in derivatives, liquidity risk, and the risks from leverage. The value of an investment will fluctuate in response to movements in the stock market in general, and to the changing prospects of individual companies in which the Fund invests. The Fund is subject to the risks of investing in foreign securities and in the securities of small companies. Foreign securities may pose greater risks than domestic securities, including greater price fluctuations and higher transaction costs. Foreign investments also may be affected by changes in currency rates or currency controls. Investing in small companies generally involves greater risks than investing in the stocks of larger companies, including more volatility and less liquidity.

21

Notes to Financial Statements (concluded)

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

These factors can affect the Fund’s performance.

10.    SUMMARY OF CAPITAL TRANSACTIONS

Transactions in shares of capital stock were as follows:

	Year Ended December 31, 2009		Year Ended December 31, 2008
Shares sold	3,267,315		2,092,393
Reinvestment of distributions	80,971		208,966
Shares reacquired	(1,624,786	)	(1,114,116	)
Increase	1,723,500		1,187,243

11.    SUBSEQUENT EVENTS

In accordance with the provisions set forth in ASC Topic 855 (formerly SFAS 165), Subsequent Events, adopted by the Fund as of December 31, 2009, management has evaluated subsequent events existing in the Fund’s financial statements through February 16, 2010. Management has determined that there were no material subsequent events that would require recognition or additional disclosure in the Fund’s financial statements through this date.

12.    RECENT ACCOUNTING PRONOUNCEMENTS

In January 2010, the FASB issued Accounting Standards Update 2010-06 “Improving Disclosures about Fair Value Measurements” (“ASU 2010-06”). ASU 2010-06 provides clarifications to existing disclosures required by ASC 820 as well as amends ASC 820 to require certain new disclosures. ASU 2010-06 is substantially effective for interim and annual reporting periods beginning after December 15, 2009. Management is currently evaluating the impact the adoption of ASU 2010-06 will have on the Fund’s financial statement disclosures.

22

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of Lord Abbett Series Fund, Inc.:

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the International Portfolio, one of the portfolios constituting the Lord Abbett Series Fund, Inc. (the “Company”), as of December 31, 2009, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2009, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the International Portfolio of the Lord Abbett Series Fund, Inc. as of December 31, 2009, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

DELOITTE & TOUCHE LLP

New York, New York

February 16, 2010

23

Basic Information About Management

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

Lord, Abbett & Co. LLC (“Lord Abbett”), a Delaware limited liability company, is the Company’s investment adviser.

Interested Directors

The following Directors are partners of Lord Abbett and are “interested persons” of the Company as defined in the Act. Mr. Dow and Ms. Foster are officers, directors, or trustees of each of the 14 Lord Abbett-sponsored funds, which consist of 53 portfolios or series.

Name, Address and Year of Birth	Current Position and Length of Service with Company	Principal Occupation During Past Five Years	Other Directorships
Robert S. Dow Lord, Abbett & Co. LLC 90 Hudson Street Jersey City, NJ 07302 (1945)	Director since 1995, Chairman since 1996	Senior Partner (since 2007), Chief Executive Officer (since 1996) and was formerly Managing Partner (1996 - 2007), joined Lord Abbett in 1972.	N/A
Daria L. Foster Lord, Abbett & Co. LLC 90 Hudson Street Jersey City, NJ 07302 (1954)	Director since 2006	Managing Partner (since 2007) and was formerly Director of Marketing and Client Service, joined Lord Abbett in 1990.	N/A

Independent Directors

The following independent or outside Directors (“Independent Directors”) are also directors or trustees of each of the 14 Lord Abbett-sponsored funds, which consist of 53 portfolios or series.

Name, Address and Year of Birth	Current Position and Length of Service with Company	Principal Occupation During Past Five Years	Other Directorships
E. Thayer Bigelow Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1941)	Director since 1994	Managing General Partner, Bigelow Media, LLC (since 2000); Senior Adviser, Time Warner Inc. (1998 - 2000).	Currently serves as director of Crane Co. (since 1984), Huttig Building Products Inc. (since 1998) and R.H. Donnelley Inc. (since 2009).
William H.T. Bush Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1938)	Director since 1998	Co-founder and Chairman of the Board of the financial advisory firm of Bush—O’Donnell & Company (since 1986).	Currently serves as director of WellPoint, Inc., a health benefits company (since 2002).

24

Basic Information About Management (continued)

Name, Address and Year of Birth	Current Position and Length of Service with Company	Principal Occupation During Past Five Years	Other Directorships
Robert B. Calhoun, Jr. Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1942)	Director since 1998	Senior Advisor of Monitor Clipper Partners, a private equity investment fund (since 1997); President of Clipper Asset Management Corp. (1991 - 2009).	N/A
Julie A. Hill Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1946)	Director since 2004	Owner and CEO of The Hill Company, a business consulting firm (since 1998).	Currently serves as director of WellPoint, Inc., a health benefits company (since 1994) and Lend Lease Corporation Limited (since 2005).
Franklin W. Hobbs Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1947)	Director since 2001	Advisor of One Equity Partners, a private equity firm (since 2004).	Currently serves as a director and Chairman of the Board of GMAC Inc., a financial services firm (since 2009) and as a director of Molson Coors Brewing Company (since 2002).
Thomas J. Neff Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1937)	Director since 1989	Chairman of Spencer Stuart (U.S.), an executive search consulting firm (since 1996).	Currently serves as director of Ace, Ltd. (since 1997) and Hewitt Associates, Inc. (since 2004).
James L.L. Tullis Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1947)	Director since 2006	CEO of Tullis-Dickerson and Co. Inc., a venture capital management firm (since 1990).	Currently serves as director of Crane Co. (since 1998).

Officers

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

Name and Year of Birth	Current Position with Company	Length of Service of Current Position	Principal Occupation During Past Five Years
Robert S. Dow (1945)	Chief Executive Officer and Chairman	Elected in 1996	Senior Partner (since 2007), Chief Executive Officer (since 1996) and was formerly Managing Partner (1996 - 2007), joined Lord Abbett in 1972.

25

Basic Information About Management (continued)

Name and Year of Birth	Current Position with Company	Length of Service of Current Position	Principal Occupation During Past Five Years
Daria L. Foster (1954)	President	Elected in 2006	Managing Partner (since 2007) and was formerly Director of Marketing and Client Service, joined Lord Abbett in 1990.
Robert P. Fetch (1953)	Executive Vice President	Elected in 2003	Partner and Director, joined Lord Abbett in 1995.
Daniel H. Frascarelli (1954)	Executive Vice President	Elected in 2003	Partner and Director, joined Lord Abbett in 1990.
Robert I. Gerber (1954)	Executive Vice President	Elected in 2003	Partner and Chief Investment Officer (since 2007), joined Lord Abbett in 1997 as Director of Taxable Fixed Income Management.
Todd D. Jacobson (1966)	Executive Vice President	Elected in 1999	Portfolio Manager, joined Lord Abbett in 2003.
Eli M. Salzmann (1964)	Executive Vice President	Elected in 2006	Partner and Director, joined Lord Abbett in 1997.
Christopher J. Towle (1957)	Executive Vice President	Elected in 1999	Partner and Director, joined Lord Abbett in 1987.
Paul J. Volovich (1973)	Executive Vice President	Elected in 2005	Partner and Director, joined Lord Abbett in 1997.
James W. Bernaiche (1956)	Chief Compliance Officer	Elected in 2004	Partner and Chief Compliance Officer, joined Lord Abbett in 2001.
Joan A. Binstock (1954)	Chief Financial Officer and Vice President	Elected in 1999	Partner and Chief Operations Officer, joined Lord Abbett in 1999.
Jeff Diamond (1960)	Vice President	Elected in 2008	Portfolio Manager, joined Lord Abbett in 2007 and was formerly a Managing Director at Axia Capital Management LLC (2004 - 2006).
John K. Forst (1960)	Vice President and Assistant Secretary	Elected in 2005	Deputy General Counsel, joined Lord Abbett in 2004.
Michael S. Goldstein (1968)	Vice President	Elected in 1999	Partner and Portfolio Manager, joined Lord Abbett in 1997.
Lawrence H. Kaplan (1957)	Vice President and Secretary	Elected in 1997	Partner and General Counsel, joined Lord Abbett in 1997.

26

Basic Information About Management (continued)

Name and Year of Birth	Current Position with Company	Length of Service of Current Position	Principal Occupation During Past Five Years
Deepak Khanna (1963)	Vice President	Elected in 2008	Portfolio Manager, rejoined Lord Abbett in 2007 from Jennison Associates LLC (2005 - 2007). Mr. Khanna’s former experience at Lord Abbett included Senior Research Analyst—other investment strategies (2000 - 2005).
David J. Linsen (1974)	Vice President	Elected in 2008	Director and Portfolio Manager, joined Lord Abbett in 2001.
Elizabeth O. MacLean (1966)	Vice President	Elected in 2008	Partner and Portfolio Manager, joined Lord Abbett in 2006 and was formerly a Managing Director/Portfolio Manager at Nomura Corporate Research and Asset Management, Inc. (2000 - 2006).
A. Edward Oberhaus, III (1959)	Vice President	Elected in 1998	Partner and Director, joined Lord Abbett in 1983.
Todor Petrov (1974)	Vice President	Elected in 2008	Portfolio Manager, joined Lord Abbett in 2003.
Thomas R. Phillips (1960)	Vice President and Assistant Secretary	Elected in 2008	Deputy General Counsel, joined Lord Abbett in 2006 and was formerly an attorney at Morgan, Lewis & Bockius LLP.
Randy M. Reynolds (1972)	Vice President	Elected in 2008	Portfolio Manager, joined Lord Abbett in 1999.
Lawrence D. Sachs (1963)	Vice President	Elected in 2010	Partner and Portfolio Manager, joined Lord Abbett in 2001.
Lawrence B. Stoller (1963)	Vice President and Assistant Secretary	Elected in 2007	Senior Deputy General Counsel, joined Lord Abbett in 2007 and was formerly an Executive Vice President and General Counsel at Cohen & Steers Capital Management, Inc. (1999 - 2007).
Bernard J. Grzelak (1971)	Treasurer	Elected in 2003	Partner and Director of Fund Administration, joined Lord Abbett in 2003.

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

27

Approval of Advisory Contract

At meetings held on December 16 and 17, 2009, the Board, including all of the Directors who are not interested persons of the Fund or Lord, Abbett & Co. LLC. (“Lord Abbett”), considered whether to approve the continuation of the existing management agreement between the Fund and Lord Abbett. In addition to the materials the Board had reviewed throughout the course of the year, the Board received materials relating to the management agreement before the meeting and had the opportunity to ask questions and request further information in connection with its consideration. The Board also took into account its familiarity with Lord Abbett gained through its previous meetings and discussions, and the examination of the portfolio management team conducted by members of the Contract Committee during the year.

The materials received by the Board included, but were not limited to, (1) information provided by Lipper Inc. regarding the investment performance of the Fund compared to the investment performance of one or more groups of funds with substantially similar investment objectives (the “performance universe”) and to the investment performance of an appropriate securities index, (2) information on the expense ratios, effective management fee rates, and other expense components, for the Fund and one or more groups of funds with similar objectives and of similar size (the “peer group”), (3) sales and redemption information for the Fund, (4) information regarding Lord Abbett’s financial condition, (5) an analysis of the relative profitability of the management agreement to Lord Abbett, (6) information regarding the distribution arrangements of the Fund, and (7) information regarding the personnel and other resources devoted by Lord Abbett to managing the Fund.

Investment Management Services Generally. The Board considered the investment management services provided by Lord Abbett to the Fund, including investment research, portfolio management, and trading, and Lord Abbett’s commitment to compliance with all relevant legal requirements. The Board also observed that Lord Abbett was solely engaged in the investment management business and accordingly did not experience the conflicts of interest resulting from being engaged in other lines of business. The Board noted that in recent years Lord Abbett had not used brokerage commissions to purchase third-party research, but had changed this practice in 2009, as it had previously discussed with the Board. The Board considered the investment advisory services provided by Lord Abbett to other clients, the fees charged for the services, and the differences in the nature of the services provided to the Fund and other Lord Abbett Funds, on the one hand, and the services provided to other clients, on the other.

Investment Performance and Compliance. The Board reviewed the Fund’s investment performance in relation to that of the performance universe, both in terms of total return and in terms of other statistical measures. The Board observed that the investment performance of the Fund was in the first quintile of its performance universe for the nine-month and one-year periods, in the fifth quintile for the three-year period, and in the third quintile for the five-year and ten-year periods. The Board also observed that the performance of the Fund was higher than that of the Lipper Variable Underlying Funds International Growth Index for the nine-month, one-year, and five-year periods and lower than that of the Index for the three-year and ten-year periods.

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

28

management personnel. The Board determined that Lord Abbett had the expertise and resources to manage the Fund effectively.

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

Expenses. The Board considered the expense levels of the Fund and the expense levels of the peer group. The Board considered the fiscal periods on which the peer group information was based, and noted that such periods ended before September 30, 2009. The Board noted that the expense levels of the peer group likely would have been different for periods ending September 30, 2009, due to the lower asset levels prevailing in the mutual fund industry during much of 2009. The Board also observed that the Fund’s transfer agency expenses were likely to decrease in 2010, as a result of renegotiation of the transfer agency agreement. It also considered the amount and nature of the fees paid by shareholders. The Board noted that it and Lord Abbett had agreed to an expense reimbursement agreement through April 30, 2009 that limited all expenses other than management fees to 0.25%, but that Lord Abbett had not entered into a new agreement, and instead had made voluntary reimbursements that had the effect of keeping the total expense ratio at approximately 1.20%, which reimbursements it could end at any time. The Board observed that for the nine months ended September 30, 2009 (annualized) the contractual management and administrative services fee rates were approximately ten basis points below the median of the peer group and the actual management and administrative services fee rates were approximately seven basis points below the median of the peer group. The Board observed that for the nine months ended September 30, 2009 (annualized) the total expense ratio of the Fund was approximately twenty basis points below the median of the peer group. The Board also considered that Lord Abbett voluntarily intended to waive its management fee and/or administrative service fee and/or voluntarily reimburse expenses to maintain the current expense ratio, and considered what the Fund’s expense ratio likely would be if Lord Abbett did not voluntarily waive its fees or reimburse any expenses and how that expense ratio would compare to that of the peer group.

Profitability. The Board considered the level of Lord Abbett’s profits in managing the Fund, including a review of Lord Abbett’s methodology for allocating its costs to its management of the Fund. The Board concluded that the allocation methodology had a reasonable basis and was appropriate. It considered any profits realized by Lord Abbett in connection with the operation of the Fund and whether the amount of profit was fair for the management of the Fund. The Board also considered the profits realized from other businesses of Lord Abbett, which may benefit from or be related to the Fund’s business. The Board considered Lord Abbett’s profit margins in comparison with available industry data, both accounting for and ignoring marketing and distribution expenses, and how those profit margins could affect Lord Abbett’s ability to recruit and retain investment personnel. The Board recognized that Lord Abbett’s profitability was a factor in enabling it to attract and retain qualified investment management personnel to provide services to the Fund. The Board noted that Lord Abbett’s overall profitability had decreased in its 2009 fiscal year, largely due to declines in market prices and shareholder redemptions. The Board concluded that Lord Abbett’s profitability overall and as to the Fund was not excessive.

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

29

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

Alternative Arrangements. The Board considered whether, instead of approving continuation of the management agreement, it might be in the best interests of the Fund to implement one or more alternative arrangements, such as continuing to employ Lord Abbett, but on different terms.

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

30

Householding

The 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 need additional copies or do not want your mailings to be “householded,” please call Lord Abbett at 888-522-2388 or send a written request with your name, the name of your fund or funds and your account number or numbers to Lord Abbett Family of Funds, P.O. Box 219336, Kansas City, MO 64121.

Proxy Voting Policies, Procedures and Records

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

Shareholder Reports and Quarterly Portfolio Disclosure

The Fund is required to file its complete schedule of portfolio holdings with the SEC for its first and third fiscal quarters on Form N-Q. Copies of the filings are available without charge, upon request on the SEC’s Website at www.sec.gov and may be available by calling Lord Abbett at 888-522-2388. You can also obtain copies of Form N-Q by (i) visiting the SEC’s Public Reference Room in Washington, DC (information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330); (ii) sending your request and duplicating fee to the SEC’s Public Reference Section, Washington, DC 20549-1520; or (iii) sending your request electronically, after paying a duplicating fee, to publicinfo@sec.gov.

Tax Information

The Fund intends to pass through foreign source income of $777,350 and foreign taxes of $68,202.

31

This report, when not used for the general information of shareholders of the Fund, is to be distributed only if preceded or accompanied by a current fund prospectus.

Lord Abbett mutual fund shares are distributed by LORD ABBETT DISTRIBUTOR LLC.

Lord Abbett Series Fund, Inc.

International Portfolio

LASFI-2-1209

(2/10)

2009

LORD ABBETT

ANNUAL

REPORT    

Lord Abbett

Series Fund—Large Cap Core Portfolio

For the fiscal year ended December 31, 2009

Lord Abbett Series Fund — Large Cap Core Portfolio

Annual Report

For the fiscal year ended December 31, 2009

From left to right: Robert S. Dow, Director and Chairman of the Lord Abbett Funds; E. Thayer Bigelow, Independent Lead Director of the Lord Abbett Funds; and Daria L. Foster, Director and President of the Lord Abbett Funds.

Dear Shareholders: We are pleased to provide you with this overview of the Lord Abbett Series Fund — Large Cap Core Portfolio’s performance for the fiscal year ended December 31, 2009. On this page and the following pages, we discuss the major factors that influenced performance. For detailed and more timely information about the Fund, please visit our Website at www.lordabbett.com, where you also can access the quarterly commentaries by the Fund’s portfolio manager.

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

Best regards,

Robert S. Dow

Chairman

Q: What were the overall market conditions during the fiscal year ended December 31, 2009?

A: After a difficult start to the year, the equity markets (as represented by the S&P 500^® Index¹) recovered during the balance of the period, ending the year up 26.46%. This improvement enabled some investors to recover a portion of their previous losses.

Overall, most equity asset classes and investing styles trended higher throughout the period. Mid cap stocks (as defined by the Russell MidCap^® Index ²) generally outperformed large cap stocks (as measured by the Russell 1000^® Index³) and small cap stocks (as measured by the Russell 2000^® Index⁴). Growth stocks (as represented by the Russell 3000^® Growth Index⁵) generally outperformed value stocks (as represented by the Russell 3000^® Value Index⁶) for the fiscal year.

Q: How did the Large Cap Core Portfolio perform during the fiscal year ended December 31, 2009?

A: The Fund returned 25.50%, reflecting performance at the net asset value (NAV) of Class VC shares, compared to its benchmark, the Russell 1000 Index, which returned 28.43% in the same period.

1

Q: What were the most significant factors affecting performance?

A: The most significant detractors from the Fund’s performance relative to its benchmark for the 12-month period were the technology, financial services, and materials and processing sectors.

Among the individual holdings that detracted from performance were energy holding Exxon Mobil Corp. (the Fund’s number-one detractor), a worldwide operator of petroleum and petrochemicals businesses; producer durables holding General Electric Company, a diversified technology corp., media, and financial services company; and financial services holding Bank of America Corp. (largest relative detractor within the financial services sector), a provider of financial and risk-management products and services.

The most significant contributors to the Fund’s performance relative to its benchmark for the 12-month period were the consumer discretionary sector, the utilities sector (owing to an underweight position), and the energy sector.

Among the individual holdings that contributed to performance were technology holdings Apple, Inc. (the Fund’s number-one contributor), a worldwide provider of personal computers and related personal computing and mobile communication devices, and Google, Inc., a global technology company that provides a search engine through its website; and consumer discretionary holding Wynn Resorts, Ltd. (largest relative contributor to the consumer discretionary sector), an operator of luxury hotels and destination casino resorts in Las Vegas, Nevada and in Macau, China.

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

¹  The S&P 500^® Index is widely regarded as the standard for measuring large cap U.S. stock market performance and includes a representative sample of leading companies in leading industries.

²  The Russell Midcap^® Index measures the performance of the 800 smallest companies in the Russell 1000 Index, which represents approximately 25% of the total market capitalization of the Russell 1000 Index.

³  The Russell 1000^® Index measures the performance of the 1,000 largest companies in the Russell 3000 Index, which represents approximately 92% of the total market capitalization of the Russell 3000 Index.

⁴  The Russell 2000^® Index is composed of 2,000 securities with market values ranging from $25 million to $275 million. The Growth Index is comprised of securities in the Russell 2000^® Index with higher price-to-book ratios and higher forecasted growth.

⁵  The Russell 3000^® Growth Index measures the performance of those Russell 3000^® Index companies with higher price-to-book ratios and higher forecasted growth values. The stocks in this index are also members of either the Russell 1000^® Growth or the Russell 2000^® Growth indexes.

⁶  The Russell 3000^® Value Index measures the performance of those Russell 3000 Index companies with lower price-to-book ratios and lower forecasted growth values. The stocks in this index are also members of either the Russell 1000^® Value or the Russell 2000^® Value indexes.

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

2

Important Performance and Other Information

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 www.lordabbett.com.

During the period covered by this report, expense waivers and reimbursements were in place. Without such expense waivers and reimbursements, the Fund’s returns would have been lower.

The views of the Fund’s management and the portfolio holdings described in this report are as of December 31, 2009; these views and portfolio holdings may have changed subsequent to this date, and they do not guarantee the future performance of the markets or the Fund. Information provided in this report should not be considered a recommendation to purchase or sell securities.

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

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

The Fund serves as an underlying investment vehicle for variable annuity contracts and variable life insurance policies.

3

Investment Comparison

Below is a comparison of a $10,000 investment in Class VC shares with the same investment in the Russell 1000^® Index and the S&P 500^® Index, assuming reinvestment of all dividends and distributions. The Fund’s shares are sold only to insurance company separate accounts that fund certain variable annuity and variable life contracts. This line graph comparison does not reflect the sales charges or other expenses of these contracts. If those sales charges and expenses were reflected, returns would be less. The graph and performance table below do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. During certain periods, expenses of the Fund have been waived or reimbursed by Lord Abbett; without such waiver or reimbursement of expenses, the Fund’s returns would have been lower. Past performance is no guarantee of future results.

Average Annual Total Returns for the

Periods Ended December 31, 2009

	1 Year	Life of Class
Class VC2	25.50%	3.48%

¹    Performance for each unmanaged index does not reflect transaction costs, management fees or sales charges. The performance of each index is not necessarily representative of the Fund’s performance. Performance for each index begins on April 29, 2005.

²    The Class VC shares were first offered on April 29, 2005.

4

Expense Example

As 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 ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2009 through December 31, 2009).

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 products that invest in the Fund, are not reflected in this Example. If such fees and expenses were reflected in the Example, the total expenses shown would be higher. Fees and expenses regarding such variable insurance products are separately described in the prospectus related to those products.

Actual Expenses

The first line of the table on the following page provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading titled “Expenses Paid During the Period 7/1/09 – 12/31/09” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

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

5

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

	Beginning Account Value		Ending Account Value		Expenses Paid During Period†
	7/1/09		12/31/2009		7/1/09 - 12/31/2009
Class VC
Actual	$	1,000.00	$	1,193.20	$	5.25
Hypothetical (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).

Portfolio Holdings Presented by Sector

December 31, 2009

Sector*	%**
Consumer Discretionary	14.45%
Consumer Staples	4.58%
Energy	11.69%
Financial Services	19.89%
Healthcare	10.61%
Materials & Processing	8.26%
Producer Durables	4.97%
Technology	21.15%
Utilities	2.23%
Short-Term Investment	2.17%
Total	100.00%

* A sector may comprise several industries.

** Represents percent of total investments.

6

Schedule of Investments

December 31, 2009

Investments	Shares	Value (000)
LONG-TERM INVESTMENTS 97.84%
COMMON STOCKS 97.69%
Aerospace 0.82%
Boeing Co. (The)	303	$	16
United Technologies Corp.	3,210		223
Total			239
Asset Management & Custodian 2.72%
Franklin Resources, Inc.	1,442		152
State Street Corp.	9,459		412
T. Rowe Price Group, Inc.	4,346		231
Total			795
Back Office Support, Human Resources, and Consulting 0.41%
Monster Worldwide, Inc.*	6,913		120
Banks: Diversified 7.12%
Bank of America Corp.	46,039		693
Fifth Third Bancorp	20,962		204
PNC Financial Services Group, Inc. (The)	6,771		357
Regions Financial Corp.	9,625		51
SunTrust Banks, Inc.	5,503		112
U.S. Bancorp	9,583		216
Wells Fargo & Co.	16,671		450
Total			2,083
Beverage: Soft Drinks 1.63%
Coca-Cola Co. (The)	5,434		310
PepsiCo, Inc.	2,760		168
Total			478
Biotechnology 2.61%
Amgen, Inc.*	6,632		375
Baxter International, Inc.	1,437		84
Celgene Corp.*	2,524		141
Genzyme Corp.*	2,241		110
Myriad Genetics, Inc.*	2,030		53
Total			763

Investments	Shares	Value (000)
Casinos & Gambling 0.66%
International Game Technology	10,331	$	194
Chemical: Diversified 2.17%
Celanese Corp. Series A	4,739		152
Dow Chemical Co. (The)	13,499		373
E.I. du Pont de Nemours & Co.	3,230		109
Total			634
Communications Technology 3.02%
Cisco Systems, Inc.*	18,340		439
QUALCOMM, Inc.	9,596		444
Total			883
Computer Services, Software & Systems 6.93%
Adobe Systems, Inc.*	12,418		457
Google, Inc. Class A*	1,167		724
Microsoft Corp.	22,024		671
VMware, Inc. Class A*	4,153		176
Total			2,028
Computer Technology 5.84%
Apple, Inc.*	3,828		807
Dell, Inc.*	10,457		150
EMC Corp.*	14,233		249
Hewlett-Packard Co.	9,806		505
Total			1,711
Copper 0.82%
Freeport-McMoRan Copper & Gold, Inc.*	2,976		239
Diversified Financial Services 7.40%
Bank of New York Mellon Corp. (The)	3,139		88
Capital One Financial Corp.	7,547		289
Goldman Sachs Group, Inc. (The)	4,000		675
JPMorgan Chase & Co.	16,482		687
Morgan Stanley	14,388		426
Total			2,165

See Notes to Financial Statements.

7

Schedule of Investments (continued)

December 31, 2009

Investments	Shares	Value (000)
Diversified Manufacturing Operations 1.46%
Eaton Corp.	2,192	$	139
General Electric Co.	9,236		140
Honeywell International, Inc.	3,785		148
Total			427
Diversified Media 0.57%
Time Warner, Inc.	5,762		168
Diversified Retail 3.32%
J.C. Penney Co., Inc.	5,874		156
Kohl’s Corp.*	4,748		256
Macy’s, Inc.	2,718		46
Target Corp.	8,409		407
Wal-Mart Stores, Inc.	1,999		107
Total			972
Drug & Grocery Store Chains 0.27%
CVS Caremark Corp.	2,478		80
Electronic Components 0.56%
Corning, Inc.	8,546		165
Electronic Entertainment 1.16%
Activision Blizzard, Inc.*	30,555		339
Entertainment 0.90%
Walt Disney Co. (The)	8,210		265
Fertilizers 3.35%
Monsanto Co.	7,622		623
Potash Corp. of Saskatchewan, Inc. (Canada)(a)	3,289		357
Total			980
Financial Data & Systems 0.34%
MasterCard, Inc. Class A	393		101
Foods 0.65%
Kellogg Co.	1,435		76
Kraft Foods, Inc. Class A	4,185		114
Total			190

Investments	Shares	Value (000)
Gold 0.25%
Barrick Gold Corp. (Canada)(a)	1,871	$	74
Healthcare Services 1.26%
Express Scripts, Inc.*	3,833		331
Medco Health Solutions, Inc.*	577		37
Total			368
Hotel/Motel 3.39%
Hyatt Hotels Corp. Class A*	1,434		43
Marriott International, Inc. Class A	14,874		405
Starwood Hotels & Resorts Worldwide, Inc.	6,165		225
Wynn Resorts Ltd.*	5,492		320
Total			993
Insurance: Life 0.56%
Prudential Financial, Inc.	3,294		164
Insurance: Multi-Line 0.93%
MetLife, Inc.	7,722		273
Leisure Time 1.18%
Carnival Corp. Unit*	9,100		288
Royal Caribbean Cruises Ltd.*	2,223		56
Total			344
Medical & Dental Instruments & Supplies 0.24%
St. Jude Medical, Inc.*	1,912		70
Medical Services 0.38%
Quest Diagnostics, Inc.	1,823		110
Metal Fabricating 0.95%
Precision Castparts Corp.	2,513		277
Oil: Crude Producers 3.63%
Apache Corp.	2,209		228
Continental Resources, Inc.*	2,296		98
Devon Energy Corp.	2,043		150

See Notes to Financial Statements.

8

Schedule of Investments (continued)

December 31, 2009

Investments	Shares	Value (000)
Oil: Crude Producers (continued)
EOG Resources, Inc.	1,739	$	169
Occidental Petroleum Corp.	2,392		195
Petrohawk Energy Corp.*	2,325		56
Range Resources Corp.	1,061		53
Southwestern Energy Co.*	2,392		115
Total			1,064
Oil: Integrated 5.95%
Chevron Corp.	3,571		275
ConocoPhillips	2,145		109
Exxon Mobil Corp.	7,404		505
Hess Corp.	6,021		364
Marathon Oil Corp.	966		30
Suncor Energy, Inc. (Canada)(a)	9,307		329
Weatherford International Ltd. (Switzerland)*(a)	7,239		130
Total			1,742
Oil Well Equipment & Services 2.11%
Schlumberger Ltd.	7,818		509
Smith International, Inc.	3,972		108
Total			617
Personal Care 1.78%
Colgate-Palmolive Co.	1,199		98
Procter & Gamble Co. (The)	6,987		424
Total			522
Pharmaceuticals 6.13%
Abbott Laboratories	5,763		311
Gilead Sciences, Inc.*	4,200		182
Johnson & Johnson	6,766		436
Merck & Co., Inc.	10,784		394
Pfizer, Inc.	21,826		397
Vertex Pharmaceuticals, Inc.*	1,741		75
Total			1,795
Railroads 1.30%
Union Pacific Corp.	5,961		381

Investments	Shares	Value (000)
Real Estate Investment Trusts 0.67%
Host Hotels & Resorts, Inc.	16,853	$	197
Restaurants 0.28%
Darden Restaurants, Inc.	2,374		83
Scientific Instruments: Control & Filter 0.77%
Parker Hannifin Corp.	4,192		226
Scientific Instruments: Electrical 0.21%
Emerson Electric Co.	1,476		63
Semiconductors & Components 3.35%
Broadcom Corp. Class A*	3,352		105
Intel Corp.	20,128		411
Micron Technology, Inc.*	24,688		261
Taiwan Semiconductor Manufacturing Co., Ltd. ADR	7,262		83
Texas Instruments, Inc.	4,637		121
Total			981
Specialty Retail 3.64%
Bed Bath & Beyond, Inc.*	3,349		129
Best Buy Co., Inc.	6,942		274
Dick’s Sporting Goods, Inc.*	15,472		385
Home Depot, Inc. (The)	9,565		277
Total			1,065
Steel 0.73%
United States Steel Corp.	3,886		214
Telecommunications Equipment 0.29%
Nokia Corp. ADR	6,563		84
Textiles Apparel & Shoes 0.50%
Coach, Inc.	3,987		146
Tobacco 0.24%
Altria Group, Inc.	3,536		69
Utilities: Electrical 0.86%
Dominion Resources, Inc.	2,414		94

See Notes to Financial Statements.

9

Schedule of Investments (concluded)

December 31, 2009

Investments	Shares	Value (000)
Utilities: Electrical (continued)
FPL Group, Inc.	1,709	$	90
Progress Energy, Inc.	1,637		67
Total			251
Utilities: Telecommunications 1.38%
AT&T, Inc.	10,548		296
Verizon Communications, Inc.	3,232		107
Total			403
Total Common Stocks (cost $25,396,728)			28,595
PREFERRED STOCK 0.15%
Banks: Diversified
Bank of America Corp.* (cost $45,000)	3,000		45
Total Long-Term Investments (cost $25,441,728)			28,640

Investments	Principal Amount (000)		Value (000)
SHORT-TERM INVESTMENT 2.17%
Repurchase Agreement
Repurchase Agreement dated 12/31/2009, Zero Coupon due 1/4/2010 with Fixed Income Clearing Corp. collateralized by $645,000 of Federal National Mortgage Assoc. at 1.722% due 5/10/2011; value: $649,838; proceeds: $634,776 (cost $634,776)	$	635	$	635
Total Investments in Securities 100.01% (cost $26,076,504)				29,275
Liabilities in Excess of Cash and Other Assets (0.01%)				(2	)
Net Assets 100.00%			$	29,273

ADR American Depositary Receipt.

Unit More than one class of securities traded together.

* Non-income producing security.

^(a) Foreign security traded in U.S. dollars.

See Notes to Financial Statements.

10

Statement of Assets and Liabilities

December 31, 2009

ASSETS:
Investments in securities, at value (cost $26,076,504)	$	29,275,232
Cash		63
Receivables:
Investment securities sold		75,092
Dividends		24,194
From advisor (See Note 3)		14,399
Capital shares sold		1,087
Prepaid expenses		319
Total assets		29,390,386
LIABILITIES:
Payables:
Management fee		16,525
Capital shares reacquired		7,040
Directors’ fees		953
Fund administration		944
Accrued expenses and other liabilities		91,719
Total liabilities		117,181
NET ASSETS	$	29,273,205
COMPOSITION OF NET ASSETS:
Paid-in capital	$	29,604,466
Distributions in excess of net investment income		(573	)
Accumulated net realized loss on investments and foreign currency related transactions		(3,529,416	)
Net unrealized appreciation on investments		3,198,728
Net Assets	$	29,273,205
Outstanding shares (50 million shares of common stock authorized, $.001 par value)		2,705,808
Net asset value, offering and redemption price per share (Net assets divided by outstanding shares)	$	10.82

See Notes to Financial Statements.

11

Statement of Operations

For the Year Ended December 31, 2009

Investment income:
Dividends (net of foreign withholding taxes of $1,916)	$	437,546
Interest		74
Total investment income		437,620
Expenses:
Management fee		168,969
Shareholder servicing		90,915
Reports to shareholders		46,927
Professional		34,463
Fund administration		9,655
Custody		6,378
Directors’ fees		810
Other		1,033
Gross expenses		359,150
Expenses reductions (See Note 7)		(50	)
Management fees waived and expenses reimbursed (See Note 3)		(120,544	)
Net expenses		238,556
Net investment income		199,064
Net realized and unrealized gain (loss):
Net realized loss on investments and foreign currency related transactions		(2,347,935	)
Net change in unrealized appreciation/depreciation on investments		8,189,095
Net realized and unrealized gain		5,841,160
Net Increase in Net Assets Resulting From Operations	$	6,040,224

See Notes to Financial Statements.

12

Statements of Changes in Net Assets

INCREASE (DECREASE) IN NET ASSETS	For the Year Ended December 31, 2009			For the Year Ended December 31, 2008
Operations:
Net investment income	$	199,064		$	227,714
Net realized loss on investments and foreign currency related transactions		(2,347,935	)		(1,144,332	)
Net change in unrealized appreciation/depreciation on investments		8,189,095			(6,887,290	)
Net increase (decrease) in net assets resulting from operations		6,040,224			(7,803,908	)
Distributions to shareholders from:
Net investment income		(199,870	)		(227,312	)
Net realized gain		–			(146,412	)
Total distributions to shareholders		(199,870	)		(373,724	)
Capital share transactions (See Note 10):
Proceeds from sales of shares		9,806,047			9,769,588
Reinvestment of distributions		199,870			373,724
Cost of shares reacquired		(6,044,020	)		(3,693,367	)
Net increase in net assets resulting from capital share transactions		3,961,897			6,449,945
Net increase (decrease) in net assets		9,802,251			(1,727,687	)
NET ASSETS:
Beginning of year	$	19,470,954		$	21,198,641
End of year	$	29,273,205		$	19,470,954
Undistributed (distributions in excess of) net investment income	$	(573	)	$	215

See Notes to Financial Statements.

13

Financial Highlights

	Year Ended 12/31								4/29/2005(a) to 12/31/2005
	2009		2008		2007		2006
Per Share Operating Performance
Net asset value, beginning of period	$  8.68		$12.89		$12.14		$10.86		$10.00
Investment operations:
Net investment income(b)	.08		.12		.09		.10		.06
Net realized and unrealized gain (loss)	2.13		(4.16	)	1.21		1.30		.83
Total from investment operations	2.21		(4.04	)	1.30		1.40		.89
Distributions to shareholders from:
Net investment income	(.07	)	(.10	)	(.08	)	(.07	)	(.03	)
Net realized gain	—		(.07	)	(.47	)	(.05	)	—
Total distributions	(.07	)	(.17	)	(.55	)	(.12	)	(.03	)
Net asset value, end of period	$10.82		$  8.68		$12.89		$12.14		$10.86
Total Return(c)	25.50	%	(31.28	)%	10.68	%	12.91	%	8.87	%(d)
Ratios to Average Net Assets:
Expenses, excluding expense reductions and including management fees waived and expenses reimbursed	.99	%	1.10	%	1.10	%	1.10	%	1.10	%(e)
Expenses, including expense reductions, management fees waived and expenses reimbursed	.99	%	1.10	%	1.10	%	1.10	%	.74	%(d)
Expenses, excluding expense reductions, management fees waived and expenses reimbursed	1.49	%	1.49	%	1.45	%	1.91	%	7.79	%(e)
Net investment income	.82	%	1.08	%	.72	%	.89	%	1.41	%(e)
Supplemental Data:
Net assets, end of period (000)	$29,273		$19,471		$21,199		$13,743		$4,992
Portfolio turnover rate	54.63	%	40.08	%	42.46	%	34.27	%	24.42	%

^(a) Commencement of operations.

^(b) Calculated using average shares outstanding during the period.

^(c) Total return assumes the reinvestment of all distributions.

^(d) Not annualized.

^(e) Annualized.

See Notes to Financial Statements.

14

Notes to Financial Statements

1.    ORGANIZATION

Lord Abbett Series Fund, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company, incorporated under Maryland law in 1989. The Company consists of eight separate portfolios (the “Funds”). This report covers Large-Cap Core Portfolio (the “Fund”). The Fund is diversified as defined in the Act.

The investment objective of the Fund is growth of capital and growth of income consistent with reasonable risk. The Fund offers Variable Contract class shares (“Class VC Shares”) which are currently issued and redeemed only in connection with investments in, and payments under, variable annuity contracts and variable life insurance policies issued by life insurance and insurance-related companies.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

2.    SIGNIFICANT ACCOUNTING POLICIES

(a) Investment Valuation–Securities actively traded on any recognized U.S. or non-U.S. exchange or on The NASDAQ Stock Market LLC are valued at the last sale price or official closing price on the exchange or system on which they are principally traded. Events occurring after the close of trading on non-U.S. exchanges may result in adjustments to the valuation of foreign securities to more accurately reflect their fair value as of the close of regular trading on the New York Stock Exchange LLC. The Fund may rely on an independent fair valuation service in adjusting the valuations of foreign securities. Unlisted equity securities are valued at the last quoted sale price or, if no sale price is available, at the mean between the most recently quoted bid and asked prices. Securities for which market quotations are not readily available are valued at fair value as determined by management and approved in good faith by the Board of Directors. Short-term securities with 60 days or less remaining to maturity are valued using the amortized cost method, which approximates current market value.

(b) Security Transactions–Security transactions are recorded as of the date that the securities are purchased or sold (trade date). Realized gains and losses on sales of portfolio securities are calculated using the identified-cost method.

(c) Investment Income–Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis as earned. Discounts are accreted and premiums are amortized using the effective interest method. Withholding taxes on foreign dividends have been provided for in accordance with the applicable country’s tax rules and rates.

(d) Income Taxes–It is the policy of the Fund to meet the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all taxable income and capital gains to its shareholders. Therefore, no income tax provision is required.

The Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund’s U.S. federal tax returns

15

Notes to Financial Statements (continued)

remains open for the fiscal years ended December 31, 2006 through December 31, 2009. The statutes of limitations on the Company’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

(e) Expenses–Expenses incurred by the Company that do not specifically relate to an individual fund are generally allocated to the Funds within the Company on a pro rata basis by relative net assets.

(f) Foreign Transactions–The books and records of the Fund are maintained in U.S. dollars and transactions denominated in foreign currencies are recorded in the Fund’s records at the rate prevailing when earned or recorded. Asset and liability accounts that are denominated in foreign currencies are adjusted daily to reflect current exchange rates and any unrealized gain (loss) is included in Net change in unrealized appreciation/depreciation on investments on the Fund’s Statement of Operations. The resultant exchange gains and losses upon settlement of such transactions are included in Net realized loss on investments and foreign currency related transactions on the Fund’s Statement of Operations. The Fund does not isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the changes in market prices of the securities.

(g) Repurchase Agreements–The Fund may enter into repurchase agreements with respect to securities. A repurchase agreement is a transaction in which a Fund acquires a security and simultaneously commits to resell that security to the seller (a bank or securities dealer) at an agreed-upon price on an agreed-upon date. The Fund requires at all times that the repurchase agreement be collateralized by cash, or by securities of the U.S. Government, its agencies, its instrumentalities, or U.S. Government sponsored enterprises having a value equal to, or in excess of, the value of the repurchase agreement (including accrued interest). If the seller of the agreement defaults on its obligation to repurchase the underlying securities at a time when the value of these securities has declined, a Fund may incur a loss upon disposition of the securities.

(h) Fair Value Measurements–In accordance with Financial Accounting Standards Board (“FASB”), Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures (formerly SFAS 157), fair value is defined as the price that the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. ASC 820 established a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk – for example, the risk inherent in a particular valuation technique used to measure fair value (such as a pricing model) and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below:

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

16

Notes to Financial Statements (continued)

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.); and

• Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of December 31, 2009 in valuing the Fund’s investments carried at value:

Investment Type*	Level 1 (000)		Level 2 (000)		Level 3 (000)		Total (000)
Common Stocks	$	28,595	$	–	$	–	$	28,595
Preferred Stock		45		–		–		45
Repurchase Agreement		–		635		–		635
Total	$	28,640	$	635	$	–	$	29,275

* See Schedule of Investments for values in each industry.

3. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Management Fee

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

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

First $1 billion .70%

Next $1 billion .65%

Over $2 billion .60%

For the fiscal year ended December 31, 2009, the effective management fee, before waivers and expenses reimbursed, was at an annualized rate of .70% of the Fund’s average daily net assets.

Lord Abbett provides certain administrative services to the Fund pursuant to an Administrative Services Agreement at an annual rate of .04% of the Fund’s average daily net assets.

For the period January 1, 2009 through April 30, 2009, Lord Abbett contractually agreed to reimburse the Fund to the extent necessary so that total annual operating expenses (excluding management fee) did not exceed an annual rate of .40% of average daily net assets.

Effective May 1, 2009, Lord Abbett voluntarily agreed to waive a portion of its management fee and, if necessary, reimburse the Fund to the extent necessary so that total annual operating expenses do not exceed an annual rate of .95% of average daily net assets.

Lord Abbett may stop or change the level of the voluntary waiver or reimbursement at any time.

The Company, on behalf of the Fund, has entered into services arrangements with certain insurance companies. Under these arrangements, certain insurance companies will be compensated up to .25%

17

Notes to Financial Statements (continued)

of the average daily net asset value (“NAV”) of the Fund’s Class VC Shares held in the insurance company’s separate account to service and maintain the Variable Contract owners’ accounts. The Fund may also compensate certain insurance companies, third-party administrators and other entities for providing recordkeeping, sub-transfer agency and other administrative services to the Fund. For the fiscal year ended December 31, 2009, the Fund incurred expenses of $84,485 for such services arrangements, which have been included in Shareholder Servicing Expense on the Statement of Operations.

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

The tax character of distributions paid during the fiscal years ended December 31, 2009 and 2008 was as follows:

	Year Ended 12/31/09		Year Ended 12/31/08
Distributions paid from:
Ordinary income	$	199,870	$	227,376
Net long-term capital gains		–		146,348
Total distributions paid	$	199,870	$	373,724

As of December 31, 2009, the components of accumulated losses on a tax-basis were as follows:

Undistributed ordinary income – net	$	380
Total undistributed earnings	$	380
Capital loss carryforwards*		(2,514,865	)
Temporary differences		(312,909	)
Unrealized gains – net		2,496,133
Total accumulated losses – net	$	(331,261	)

* As of December 31, 2009, the capital loss carryforwards, along with the related expiration dates, were as follows:

2016	2017		Total
$590,022	$	1,924,843	$	2,514,865

Certain losses incurred after October 31 (“Post-October losses”) within the taxable year are deemed to arise on the first business day of the Fund’s next taxable year. The Fund incurred and will elect to defer net capital losses of $311,956 during fiscal 2009.

18

Notes to Financial Statements (continued)

As of December 31, 2009, the aggregate unrealized security gains and losses based on cost for U.S. federal income tax purposes were as follows:

Tax cost	$	26,779,099
Gross unrealized gain		3,193,423
Gross unrealized loss		(697,290	)
Net unrealized security gain	$	2,496,133

The difference between book-basis and tax-basis unrealized gains (losses) is attributable to wash sales.

Permanent items identified during the fiscal year ended December 31, 2009 have been reclassified among the components of net assets based on their tax basis treatment as follows:

Distributions in Excess of Net Investment Income	Accumulated Net Realized Loss
$18	$(18)

The permanent differences are attributable to the tax treatment of foreign currency transactions.

5. PORTFOLIO SECURITIES TRANSACTIONS

Purchases and sales of investment securities (excluding short-term investments) for the fiscal year ended December 31, 2009 were as follows:

Purchases	Sales
$16,516,078	$12,734,670

There were no purchases or sales of U.S. Government securities for the fiscal year ended December 31, 2009.

6. DIRECTORS’ REMUNERATION

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

7. EXPENSE REDUCTIONS

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

8. CUSTODIAN AND ACCOUNTING AGENT

State Street Bank and Trust Company (“SSB”) is the Company’s custodian and accounting agent. SSB performs custodial, accounting and recordkeeping functions relating to portfolio transactions and calculating the Fund’s NAV.

19

Notes to Financial Statements (concluded)

9. INVESTMENT RISKS

The Fund is subject to the general risks and considerations associated with equity investing, as well as the particular risks associated with value and growth stocks. This means the value of your investment will fluctuate in response to movements in the equity securities market in general and to the changing prospects of individual companies in which the Fund invests. Large-cap value and growth stocks may perform differently than the market as a whole and differently than each other and other types of stocks, such as small company stocks. This is because different types of stocks tend to shift in and out of favor depending on market and economic conditions. The market may fail to recognize the intrinsic value of particular value stocks for a long time. Growth stocks may be more volatile than other stocks. In addition, if the Fund’s assessment of a company’s value or prospects for exceeding earnings expectations or market conditions is wrong, the Fund could suffer losses or produce poor performance relative to other funds, even in a rising market.

Due to its investments in multinational companies, the Fund may experience increased market, liquidity, currency, political, information, and other risks.

These factors can affect the Fund’s performance.

10. SUMMARY OF CAPITAL TRANSACTIONS

Transactions in shares of capital stock were as follows:

	Year Ended December 31, 2009		Year Ended December 31, 2008
Shares sold	1,063,360		900,643
Reinvestment of distributions	18,387		45,027
Shares reacquired	(618,425	)	(348,275	)
Increase	463,322		597,395

11. SUBSEQUENT EVENTS

In accordance with the provisions set forth in ASC Topic 855 (formerly SFAS 165), Subsequent Events, adopted by the Fund as of December 31, 2009, management has evaluated subsequent events existing in the Fund’s financial statements through February 16, 2010. Management has determined that there were no material subsequent events that would require recognition or additional disclosure in the Fund’s financial statements through this date.

12. RECENT ACCOUNTING PRONOUNCEMENTS

In January 2010, the FASB issued Accounting Standards Update 2010-06 “Improving Disclosures about Fair Value Measurements” (“ASU 2010-06”). ASU 2010-06 provides clarifications to existing disclosures required by ASC 820 as well as amends ASC 820 to require certain new disclosures. ASU 2010-06 is substantially effective for interim and annual reporting periods beginning after December 15, 2009. Management is currently evaluating the impact the adoption of ASU 2010-06 will have on the Fund’s financial statement disclosures.

20

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of Lord Abbett Series Fund, Inc.:

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the Large-Cap Core Portfolio, one of the portfolios constituting the Lord Abbett Series Fund, Inc. (the “Company”), as of December 31, 2009, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2009, by correspondence with the custodian and broker. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Large-Cap Core Portfolio of the Lord Abbett Series Fund, Inc. as of December 31, 2009, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America.

DELOITTE & TOUCHE LLP

New York, New York

February 16, 2010

21

Basic Information About Management

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

Lord, Abbett & Co. LLC (“Lord Abbett”), a Delaware limited liability company, is the Company’s investment adviser.

Interested Directors

The following Directors are partners of Lord Abbett and are “interested persons” of the Company as defined in the Act. Mr. Dow and Ms. Foster are officers, directors, or trustees of each of the 14 Lord Abbett-sponsored funds, which consist of 53 portfolios or series.

Name, Address and Year of Birth	Current Position and Length of Service with Company	Principal Occupation During Past Five Years	Other Directorships
Robert S. Dow Lord, Abbett & Co. LLC 90 Hudson Street Jersey City, NJ 07302 (1945)	Director since 1995, Chairman since 1996	Senior Partner (since 2007), Chief Executive Officer (since 1996) and was formerly Managing Partner (1996 - 2007), joined Lord Abbett in 1972.	N/A
Daria L. Foster Lord, Abbett & Co. LLC 90 Hudson Street Jersey City, NJ 07302 (1954)	Director since 2006	Managing Partner (since 2007) and was formerly Director of Marketing and Client Service, joined Lord Abbett in 1990.	N/A

Independent Directors

The following independent or outside Directors (“Independent Directors”) are also directors or trustees of each of the 14 Lord Abbett-sponsored funds, which consist of 53 portfolios or series.

Name, Address and Year of Birth	Current Position and Length of Service with Company	Principal Occupation During Past Five Years	Other Directorships
E. Thayer Bigelow Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1941)	Director since 1994	Managing General Partner, Bigelow Media, LLC (since 2000); Senior Adviser, Time Warner Inc. (1998 - 2000).	Currently serves as director of Crane Co. (since 1984), Huttig Building Products Inc. (since 1998) and R.H. Donnelley Inc. (since 2009).

22

Basic Information About Management (continued)

Name, Address and Year of Birth	Current Position and Length of Service with Company	Principal Occupation During Past Five Years	Other Directorships
William H.T. Bush Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1938)	Director since 1998	Co-founder and Chairman of the Board of the financial advisory firm of Bush - O’Donnell & Company (since 1986).	Currently serves as director of WellPoint, Inc., a health benefits company (since 2002).
Robert B. Calhoun, Jr. Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1942)	Director since 1998	Senior Advisor of Monitor Clipper Partners, a private equity investment fund (since 1997); President of Clipper Asset Management Corp. (1991 - 2009).	N/A
Julie A. Hill Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1946)	Director since 2004	Owner and CEO of The Hill Company, a business consulting firm (since 1998).	Currently serves as director of WellPoint, Inc., a health benefits company (since 1994) and Lend Lease Corporation Limited (since 2005).
Franklin W. Hobbs Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1947)	Director since 2001	Advisor of One Equity Partners, a private equity firm (since 2004).	Currently serves as a director and Chairman of the Board of GMAC Inc., a financial services firm (since 2009) and as a director of Molson Coors Brewing Company (since 2002).
Thomas J. Neff Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1937)	Director since 1989	Chairman of Spencer Stuart (U.S.), an executive search consulting firm (since 1996).	Currently serves as director of Ace, Ltd. (since 1997) and Hewitt Associates, Inc. (since 2004).
James L.L. Tullis Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1947)	Director since 2006	CEO of Tullis-Dickerson and Co. Inc., a venture capital management firm (since 1990).	Currently serves as director of Crane Co. (since 1998).

23

Basic Information About Management (continued)

Officers

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

Name and Year of Birth	Current Position with Company	Length of Service of Current Position	Principal Occupation During Past Five Years
Robert S. Dow (1945)	Chief Executive Officer and Chairman	Elected in 1996	Senior Partner (since 2007), Chief Executive Officer (since 1996) and was formerly Managing Partner (1996 - 2007), joined Lord Abbett in 1972.
Daria L. Foster (1954)	President	Elected in 2006	Managing Partner (since 2007) and was formerly Director of Marketing and Client Service, joined Lord Abbett in 1990.
Robert P. Fetch (1953)	Executive Vice President	Elected in 2003	Partner and Director, joined Lord Abbett in 1995.
Daniel H. Frascarelli (1954)	Executive Vice President	Elected in 2003	Partner and Director, joined Lord Abbett in 1990.
Robert I. Gerber (1954)	Executive Vice President	Elected in 2003	Partner and Chief Investment Officer (since 2007), joined Lord Abbett in 1997 as Director of Taxable Fixed Income Management.
Todd D. Jacobson (1966)	Executive Vice President	Elected in 1999	Portfolio Manager, joined Lord Abbett in 2003.
Eli M. Salzmann (1964)	Executive Vice President	Elected in 2006	Partner and Director, joined Lord Abbett in 1997.
Christopher J. Towle (1957)	Executive Vice President	Elected in 1999	Partner and Director, joined Lord Abbett in 1987.
Paul J. Volovich (1973)	Executive Vice President	Elected in 2005	Partner and Director, joined Lord Abbett in 1997.
James W. Bernaiche (1956)	Chief Compliance Officer	Elected in 2004	Partner and Chief Compliance Officer, joined Lord Abbett in 2001.
Joan A. Binstock (1954)	Chief Financial Officer and Vice President	Elected in 1999	Partner and Chief Operations Officer, joined Lord Abbett in 1999.

24

Basic Information About Management (continued)

Name and Year of Birth	Current Position with Company	Length of Service of Current Position	Principal Occupation During Past Five Years
Jeff Diamond (1960)	Vice President	Elected in 2008	Portfolio Manager, joined Lord Abbett in 2007 and was formerly a Managing Director at Axia Capital Management LLC (2004 - 2006).
John K. Forst (1960)	Vice President and Assistant Secretary	Elected in 2005	Deputy General Counsel, joined Lord Abbett in 2004.
Michael S. Goldstein (1968)	Vice President	Elected in 1999	Partner and Portfolio Manager, joined Lord Abbett in 1997.
Lawrence H. Kaplan (1957)	Vice President and Secretary	Elected in 1997	Partner and General Counsel, joined Lord Abbett in 1997.
Deepak Khanna (1963)	Vice President	Elected in 2008	Portfolio Manager, rejoined Lord Abbett in 2007 from Jennison Associates LLC (2005 - 2007). Mr. Khanna’s former experience at Lord Abbett included Senior Research Analyst - other investment strategies (2000–2005).
David J. Linsen (1974)	Vice President	Elected in 2008	Director and Portfolio Manager, joined Lord Abbett in 2001.
Elizabeth O. MacLean (1966)	Vice President	Elected in 2008	Partner and Portfolio Manager, joined Lord Abbett in 2006 and was formerly a Managing Director/Portfolio Manager at Nomura Corporate Research and Asset Management, Inc. (2000 - 2006).
A. Edward Oberhaus, III (1959)	Vice President	Elected in 1998	Partner and Director, joined Lord Abbett in 1983.
Todor Petrov (1974)	Vice President	Elected in 2008	Portfolio Manager, joined Lord Abbett in 2003.
Thomas R. Phillips (1960)	Vice President and Assistant Secretary	Elected in 2008	Deputy General Counsel, joined Lord Abbett in 2006 and was formerly an attorney at Morgan, Lewis & Bockius LLP.
Randy M. Reynolds (1972)	Vice President	Elected in 2008	Portfolio Manager, joined Lord Abbett in 1999.

25

Basic Information About Management (continued)

Name and Year of Birth	Current Position with Company	Length of Service of Current Position	Principal Occupation During Past Five Years
Lawrence D. Sachs (1963)	Vice President	Elected in 2010	Partner and Portfolio Manager, joined Lord Abbett in 2001.
Lawrence B. Stoller (1963)	Vice President and Assistant Secretary	Elected in 2007	Senior Deputy General Counsel, joined Lord Abbett in 2007 and was formerly an Executive Vice President and General Counsel at Cohen & Steers Capital Management, Inc. (1999 - 2007).
Bernard J. Grzelak (1971)	Treasurer	Elected in 2003	Partner and Director of Fund Administration, joined Lord Abbett in 2003.

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

26

Approval of Advisory Contract

At meetings held on December 16 and 17, 2009, the Board, including all of the Directors who are not interested persons of the Fund or Lord, Abbett & Co. LLC. (“Lord Abbett”), considered whether to approve the continuation of the existing management agreement between the Fund and Lord Abbett. In addition to the materials the Board had reviewed throughout the course of the year, the Board received materials relating to the management agreement before the meeting and had the opportunity to ask questions and request further information in connection with its consideration. The Board also took into account its familiarity with Lord Abbett gained through its previous meetings and discussions, and the examination of the portfolio management team conducted by members of the Contract Committee during the year.

The materials received by the Board included, but were not limited to, (1) information provided by Lipper Inc. regarding the investment performance of the Fund compared to the investment performance of one or more groups of funds with substantially similar investment objectives (the “performance universe”) and to the investment performance of an appropriate securities index, (2) information on the expense ratios, effective management fee rates, and other expense components, for the Fund and one or more groups of funds with similar objectives and of similar size (the “peer group”), (3) sales and redemption information for the Fund, (4) information regarding Lord Abbett’s financial condition, (5) an analysis of the relative profitability of the management agreement to Lord Abbett, (6) information regarding the distribution arrangements of the Fund, and (7) information regarding the personnel and other resources devoted by Lord Abbett to managing the Fund.

Investment Management Services Generally. The Board considered the investment management services provided by Lord Abbett to the Fund, including investment research, portfolio management, and trading, and Lord Abbett’s commitment to compliance with all relevant legal requirements. The Board also observed that Lord Abbett was solely engaged in the investment management business and accordingly did not experience the conflicts of interest resulting from being engaged in other lines of business. The Board noted that in recent years Lord Abbett had not used brokerage commissions to purchase third-party research, but had changed this practice in 2009, as it had previously discussed with the Board. The Board considered the investment advisory services provided by Lord Abbett to other clients, the fees charged for the services, and the differences in the nature of the services provided to the Fund and other Lord Abbett Funds, on the one hand, and the services provided to other clients, on the other.

Investment Performance and Compliance. The Board reviewed the Fund’s investment performance in relation to that of the performance universe, both in terms of total return and in terms of other statistical measures. The Board observed that the investment performance of the Fund was in the third quintile of its performance universe for the nine-month period and in the first quintile for the one-year and three-year periods. The Board also observed that the Fund’s investment performance was lower than that of the Lipper Variable Underlying Funds Large-Cap Core Index for the nine-month period and higher than that of the Index for the one-year and three-year periods. The Board also noted that the Fund’s investment objective, strategy, and investment team were identical to those of Lord Abbett Research Fund, Inc. — Classic Stock Fund and that the investment performance of the Class A shares of Classic Stock Fund was in the first quintile of its performance universe for the five-year and ten-year periods and higher than that of the Lipper Large-Cap Core Index for those periods.

27

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

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

Expenses. The Board considered the expense levels of the Fund and the expense levels of the peer group. The Board considered the fiscal periods on which the peer group information was based, and noted that such fiscal periods ended before September 30, 2009. The Board noted that the expense levels of the peer group likely would have been different for periods ending September 30, 2009, due to the lower asset levels prevailing in the mutual fund industry during much of 2009. The Board also observed that the Fund’s transfer agency expenses were likely to decrease in 2010, as a result of renegotiation of the transfer agency agreement. It also considered the amount and nature of the fees paid by shareholders. The Board noted that it and Lord Abbett had agreed to an expense reimbursement agreement to April 30, 2009 that limited all expenses other than management fees to 0.40%, but that Lord Abbett had not entered into a new agreement, and had made voluntary reimbursements that had the effect of keeping the total expense ratio at approximately 0.95%, which reimbursements it could end at any time. The Board observed that for the nine months ended September 30, 2009 (annualized) the contractual management and administrative services fee rates were approximately five basis points above the median of the peer group and the actual management and administrative services fee rates were approximately eleven basis points above the median of the peer group. The Board also observed that for the nine months ended September 30, 2009 (annualized) the total expense ratio of the Fund was approximately twenty basis points below the median of the peer group. The Board also considered that Lord Abbett voluntarily intended to waive its management fee and/or administrative service fee and/or voluntarily reimburse expenses to maintain the current expense ratio, and considered what the Fund’s expense ratio likely would be if Lord Abbett did not voluntarily waive its fees or reimburse any expenses and how that expense ratio would compare to that of the peer group.

Profitability. The Board considered the level of Lord Abbett’s profits in managing the Fund, including a review of Lord Abbett’s methodology for allocating its costs to its management of the Fund. The Board concluded that the allocation methodology had a reasonable basis and was appropriate. It considered any profits realized by Lord Abbett in connection with the operation of the Fund and whether the amount of profit was fair for the management of the Fund. The Board also considered the profits realized from other businesses of Lord Abbett, which may benefit from or be related to the Fund’s business. The Board considered Lord Abbett’s profit margins in comparison with available industry data, both accounting for and ignoring marketing and distribution expenses, and how those profit margins could affect Lord Abbett’s ability to recruit and retain investment personnel. The Board recognized that Lord Abbett’s profitability was a factor in enabling it to attract and retain qualified investment management personnel to provide services to the Fund. The Board noted that Lord Abbett’s overall profitability had decreased in its 2009 fiscal year, largely due to declines in market prices and shareholder redemptions. The Board concluded that Lord Abbett’s profitability overall and as to the Fund was not excessive.

28

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

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

Alternative Arrangements. The Board considered whether, instead of approving continuation of the management agreement, it might be in the best interests of the Fund to implement one or more alternative arrangements, such as continuing to employ Lord Abbett, but on different terms.

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

29

Householding

The 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 need additional copies or do not want your mailings to be “householded,” please call Lord Abbett at 888-522-2388 or send a written request with your name, the name of your fund or funds and your account number or numbers to Lord Abbett Family of Funds, P.O. Box 219336, Kansas City, MO 64121.

Proxy Voting Policies, Procedures and Records

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

Shareholder Reports and Quarterly Portfolio Disclosure

The Fund is required to file its complete schedule of portfolio holdings with the SEC for its first and third fiscal quarters on Form N-Q. Copies of the filings are available without charge, upon request on the SEC’s Website at www.sec.gov and may be available by calling Lord Abbett at 888-522-2388. You can also obtain copies of Form N-Q by (i) visiting the SEC’s Public Reference Room in Washington, DC (information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330); (ii) sending your request and duplicating fee to the SEC’s Public Reference Section, Washington, DC 20549-1520; or (iii) sending your request electronically, after paying a duplicating fee, to publicinfo@sec.gov.

Tax Information

For corporate shareholders, 100% of ordinary income distribution paid by the Fund during the fiscal year ended December 31, 2009 qualified for the dividends received deduction.

30

This report, when not used for the general information of shareholders of the Fund, is to be distributed only if preceded or accompanied by a current fund prospectus.

Lord Abbett mutual fund shares are distributed by LORD ABBETT DISTRIBUTOR LLC.

Lord Abbett Series Fund, Inc.

Large-Cap Core Portfolio

LASFLCC-2-1209

(2/10)

2009

LORD ABBETT

ANNUAL

REPORT    

Lord Abbett

Series Fund—Mid Cap Value Portfolio

For the fiscal year ended December 31, 2009

Lord Abbett Series Fund — Mid Cap Value Portfolio

Annual Report

For the fiscal year ended December 31, 2009

From left to right: Robert S. Dow, Director and Chairman of the Lord Abbett Funds; E. Thayer Bigelow, Independent Lead Director of the Lord Abbett Funds; and Daria L. Foster, Director and President of the Lord Abbett Funds.

Dear Shareholders: We are pleased to provide you with this overview of the Lord Abbett Series Fund – Mid Cap Value Portfolio’s performance for the fiscal year ended December 31, 2009. On this page and the following pages, we discuss the major factors that influenced performance. For detailed and more timely information about the Fund, please visit our Website at www.lordabbett.com, where you also can access the quarterly commentaries by the Fund’s portfolio manager.

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

Best regards,

Robert S. Dow

Chairman

Q: What were the overall market conditions during the fiscal year ended December 31, 2009?

A: After a difficult start to the year, the equity markets (as represented by the S&P 500^® Index¹) recovered during the balance of the period, ending the year up 26.46%. This improvement enabled some investors to recover a portion of their previous losses.

Overall, most equity asset classes and investing styles trended higher throughout the period. Mid cap stocks (as defined by the Russell MidCap^® Index ²) generally outperformed large cap stocks (as measured by the Russell 1000^® Index³) and small cap stocks (as measured by the Russell 2000^® Index⁴). Growth stocks (as represented by the Russell 3000^® Growth Index⁵) generally outperformed value stocks (as represented by the Russell 3000^® Value Index⁶) for the fiscal year.

Q: How did the Mid Cap Value Portfolio perform during the fiscal year ended December 31, 2009?

A: The Fund returned 26.62%, reflecting performance at the net asset value (NAV) of Class VC shares with all distributions reinvested, compared to its benchmark, the Russell Midcap^® Value Index,⁷ which had a total return of 34.21% over the same period.

1

Q: What were the most significant factors affecting performance?

A: The most significant detractors from the Fund’s performance relative to its benchmark for the 12-month period were the materials and processing, technology, and financial services sectors.

Among the individual holdings that detracted from performance were financial services holding Fifth Third Bancorp (the Fund’s number-one detractor), a diversified financial services company; materials and processing holding Pactiv Corp., a producer of consumer and food service/food packaging products; and healthcare holding King Pharmaceuticals, Inc., a manufacturer and marketer of primarily branded prescription pharmaceutical products.

The most significant contributor to the Fund’s performance relative to its benchmark for the 12-month period was the utilities sector (owing to an underweight position).

Among the individual holdings that contributed to the Fund’s relative performance were healthcare holding Mylan Laboratories, Inc. (the Fund’s number-one contributor), a global generic and specialty pharmaceuticals company; producer durables holding Kansas City Southern, an operator of a railroad system that provides shippers with rail freight services; and consumer discretionary holding Wynn Resorts, Ltd., an operator of luxury hotels and destination casino resorts in Las Vegas, Nevada and Macau, China.

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

¹  The S&P 500^® Index is widely regarded as the standard for measuring large cap U.S. stock market performance and includes a representative sample of leading companies in leading industries.

²  The Russell Midcap^® Index measures the performance of the 800 smallest companies in the Russell 1000 Index, which represents approximately 25% of the total market capitalization of the Russell 1000 Index.

³  The Russell 1000^® Index measures the performance of the 1,000 largest companies in the Russell 3000 Index, which represents approximately 92% of the total market capitalization of the Russell 3000 Index.

⁴  The Russell 2000^® Index is composed of 2,000 securities with market values ranging from $25 million to $275 million. The Growth Index is comprised of securities in the Russell 2000^® Index with higher price-to-book ratios and higher forecasted growth.

⁵  The Russell 3000^® Growth Index measures the performance of those Russell 3000^® Index companies with higher price-to-book ratios and higher forecasted growth values. The stocks in this index are also members of either the Russell 1000^® Growth or the Russell 2000^® Growth indexes.

⁶  The Russell 3000^® Value Index measures the performance of those Russell 3000 Index companies with lower price-to-book ratios and lower forecasted growth values. The stocks in this index are also members of either the Russell 1000^® Value or the Russell 2000^® Value indexes.

2

⁷  The Russell Midcap^® Value Index measures the performance of those Russell Midcap companies with lower price-to-book ratios and lower forecasted growth values. The stocks also are members of the Russell 1000^® Value index.

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

Important Performance and Other Information

Performance data quoted 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 www.lordabbett.com.

The views of the Fund’s management and the portfolio holdings described in this report are as of December 31, 2009; these views and portfolio holdings may have changed subsequent to this date, and they do not guarantee the future performance of the markets or the Fund. Information provided in this report should not be considered a recommendation to purchase or sell securities.

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

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

The Fund serves as an underlying investment vehicle for variable annuity contracts and variable life insurance policies.

3

Investment Comparison

Below is a comparison of a $10,000 investment in Class VC shares with the same investment in the Russell Midcap^® Value Index and the S&P MidCap 400 Value Index assuming reinvestment of all dividends and distributions. The Fund’s shares are sold only to insurance company separate accounts that fund certain variable annuity and variable life contracts. This line graph comparison does not reflect the sales charges or other expenses of these contracts. If those sales charges and expenses were reflected, returns would be less. The graph and performance table below do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. During certain periods, expenses of the Fund have been waived or reimbursed by Lord Abbett; without such waiver or reimbursement of expenses, the Fund’s returns would have been lower. Past performance is no guarantee of future results.

Average Annual Total Returns for the

Periods Ended December 31, 2009

	1 Year	5 Years	10 Years
Class VC	26.62%	-1.27%	7.99%

¹    Performance for each unmanaged index does not reflect transaction costs, management fees or sales charges. The performance of each index is not necessarily representative of the Fund’s performance.

4

Expense Example

As 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 ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2009 through December 31, 2009).

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 products that invest in the Fund, are not reflected in this Example. If such fees and expenses were reflected in the Example, the total expenses shown would be higher. Fees and expenses regarding such variable insurance products are separately described in the prospectus related to those products.

Actual Expenses

The first line of the table on the following page provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading titled “Expenses Paid During the Period 7/1/09 – 12/31/09” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

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

5

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

	Beginning Account Value		Ending Account Value		Expenses Paid During Period†
	7/1/09		12/31/09		7/1/09 - 12/31/09
Class VC
Actual	$	1,000.00	$	1,256.60	$	6.94
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.04	$	6.21

^† Net expenses are equal to the Fund’s annualized expense ratio of 1.22%, multiplied by the average account value over the period, multiplied by 184/365 (to reflect one-half period).

Portfolio Holdings Presented by Sector

December 31, 2009

Sector*	%**
Consumer Discretionary	16.92%
Consumer Staples	1.31%
Energy	12.15%
Financial Services	15.79%
Healthcare	17.15%
Materials & Processing	6.23%
Producer Durables	12.98%
Technology	11.32%
Utilities	4.32%
Short-Term Investment	1.83%
Total	100.00%

* A sector may comprise several industries.

** Represents percent of total investments.

6

Schedule of Investments

December 31, 2009

Investments	Shares	Value (000)
COMMON STOCKS 98.28%
Advertising Agencies 3.15%
Interpublic Group of Cos., Inc. (The)*	1,079,558	$	7,967
Omnicom Group, Inc.	175,100		6,855
Total			14,822
Aerospace 0.36%
Curtiss-Wright Corp.	53,651		1,680
Asset Management & Custodian 0.34%
State Street Corp.	36,600		1,594
Auto Parts 1.66%
Autoliv, Inc. (Sweden)(a)	27,000		1,171
WABCO Holdings, Inc.	258,400		6,664
Total			7,835
Banks: Diversified 7.86%
City National Corp.	177,300		8,085
Comerica, Inc.	207,800		6,145
Commerce Bancshares, Inc.	92,085		3,565
Cullen/Frost Bankers, Inc.	104,400		5,220
FirstMerit Corp.	35,400		713
KeyCorp	761,900		4,229
M&T Bank Corp.	102,600		6,863
SunTrust Banks, Inc.	107,400		2,179
Total			36,999
Banks: Savings, Thrift & Mortgage Lending 0.56%
Washington Federal, Inc.	135,300		2,617
Biotechnology 0.49%
Onyx Pharmaceuticals, Inc.*	78,101		2,291
Building Materials 0.27%
Simpson Manufacturing Co., Inc.	47,400		1,275

Investments	Shares	Value (000)
Casinos & Gambling 0.48%
International Game Technology	119,700	$	2,247
Chemical: Diversified 0.89%
Celanese Corp. Series A	72,543		2,329
Olin Corp.	106,200		1,861
Total			4,190
Commercial Services: Rental & Leasing 0.43%
GATX Corp.	70,463		2,026
Communications Technology 1.04%
QLogic Corp.*	158,600		2,993
Tellabs, Inc.*	332,748		1,890
Total			4,883
Computer Services, Software & Systems 7.31%
Adobe Systems, Inc.*	184,780		6,796
Autodesk, Inc.*	236,991		6,022
CA, Inc.	177,900		3,996
Diebold, Inc.	147,400		4,193
Intuit, Inc.*	224,600		6,897
McAfee, Inc.*	60,023		2,435
VeriFone Holdings, Inc.*	247,900		4,061
Total			34,400
Consumer Services: Miscellaneous 1.65%
H&R Block, Inc.	168,443		3,810
NutriSystem, Inc.	126,426		3,941
Total			7,751
Containers & Packaging 1.09%
Ball Corp.	98,865		5,111
Diversified Financial Services 2.61%
Lazard Ltd. Class A	258,200		9,804
Raymond James Financial, Inc.	105,418		2,506
Total			12,310

See Notes to Financial Statements.

7

Schedule of Investments (continued)

December 31, 2009

Investments	Shares	Value (000)
Diversified Manufacturing Operations 4.22%
Eaton Corp.	123,600	$	7,863
ITT Corp.	92,100		4,581
Pentair, Inc.	45,200		1,460
Tyco International Ltd. (Switzerland)(a)	167,230		5,967
Total			19,871
Diversified Retail 2.21%
Big Lots, Inc.*	145,500		4,217
Family Dollar Stores, Inc.	109,254		3,040
Nordstrom, Inc.	84,000		3,157
Total			10,414
Electronics 0.79%
Trimble Navigation Ltd.*	146,900		3,702
Engineering & Contracting Services 0.72%
Jacobs Engineering Group, Inc.*	90,000		3,385
Financial Data & Systems 0.27%
Jack Henry & Associates, Inc.	55,100		1,274
Foods 1.32%
J.M. Smucker Co. (The)	100,300		6,193
Gas Pipeline 2.58%
El Paso Corp.	376,200		3,698
EQT Corp.	192,400		8,450
Total			12,148
Healthcare Facilities 1.41%
DaVita, Inc.*	112,700		6,620
Healthcare Management Services 1.32%
CIGNA Corp.	109,200		3,851
Humana, Inc.*	54,200		2,379
Total			6,230

Investments	Shares	Value (000)
Healthcare Services 2.19%
HealthSouth Corp.*	183,635	$	3,447
McKesson Corp.	109,700		6,856
Total			10,303
Hotel/Motel 3.41%
Hyatt Hotels Corp. Class A*	81,900		2,441
Marriott International, Inc. Class A	225,137		6,135
Starwood Hotels & Resorts Worldwide, Inc.	155,300		5,679
Wynn Resorts Ltd.	30,700		1,788
Total			16,043
Household Equipment/Products 1.01%
Fortune Brands, Inc.	109,600		4,735
Insurance: Multi-Line 1.87%
ACE Ltd. (Switzerland)*(a)	61,919		3,121
Aon Corp.	59,300		2,273
Markel Corp.*	10,000		3,400
Total			8,794
Insurance: Property-Casualty 1.42%
PartnerRe Ltd.	89,348		6,671
Luxury Items 0.32%
Fossil, Inc.*	45,000		1,510
Machinery: Industrial 0.80%
Kennametal, Inc.	146,100		3,787
Medical & Dental Instruments & Supplies 4.33%
Cooper Cos., Inc. (The)	105,348		4,016
DENTSPLY International, Inc.	60,800		2,138
Kinetic Concepts, Inc.*	74,400		2,801
Patterson Cos., Inc.*	298,800		8,360
Zimmer Holdings, Inc.*	52,100		3,080
Total			20,395

See Notes to Financial Statements.

8

Schedule of Investments (continued)

December 31, 2009

Investments	Shares	Value (000)
Medical Equipment 1.10%
Varian Medical Systems, Inc.*	110,200	$	5,163
Metal Fabricating 1.71%
Reliance Steel & Aluminum Co.	186,100		8,043
Metals & Minerals: Diversified 0.80%
Agnico-Eagle Mines Ltd. (Canada)(a)	70,095		3,785
Oil: Crude Producers 3.98%
Cabot Oil & Gas Corp.	147,500		6,429
EOG Resources, Inc.	21,895		2,130
Goodrich Petroleum Corp.*	129,900		3,163
Noble Energy, Inc.	71,100		5,064
Range Resources Corp.	38,900		1,939
Total			18,725
Oil: Integrated 1.46%
Williams Cos., Inc. (The)	325,900		6,870
Oil Well Equipment & Services 4.14%
Halliburton Co.	229,760		6,913
Helmerich & Payne, Inc.	60,600		2,417
Nabors Industries Ltd.*	58,600		1,283
Smith International, Inc.	122,300		3,323
Superior Energy Services, Inc.*	228,600		5,553
Total			19,489
Pharmaceuticals 6.33%
AmerisourceBergen Corp.	363,482		9,476
Mylan, Inc.*	393,611		7,254
Warner Chilcott plc Class A (Ireland)*(a)	338,800		9,646
Watson Pharmaceuticals, Inc.*	86,600		3,430
Total			29,806

Investments	Shares	Value (000)
Producer Durables: Miscellaneous 1.01%
SPX Corp.	77,200	$	4,223
W.W. Grainger, Inc.	5,544		537
Total			4,760
Railroads 1.85%
Kansas City Southern*	262,355		8,734
Real Estate Investment Trusts 0.87%
Alexandria Real Estate Equities, Inc.	64,000		4,114
Scientific Instruments: Control & Filter 1.75%
Parker Hannifin Corp.	87,900		4,736
Roper Industries, Inc.	66,474		3,481
Total			8,217
Scientific Instruments: Electrical 0.83%
AMETEK, Inc.	101,700		3,889
Scientific Instruments: Pollution Control 0.73%
Republic Services, Inc.	121,062		3,427
Semiconductors & Components 2.20%
Micron Technology, Inc.*	541,500		5,718
Xilinx, Inc.	185,500		4,649
Total			10,367
Shipping 0.29%
Kirby Corp.*	39,697		1,383
Specialty Retail 2.81%
American Eagle Outfitters, Inc.	320,300		5,439
Children’s Place Retail Stores, Inc. (The)*	86,627		2,860
PetSmart, Inc.	148,800		3,971
Pier 1 Imports, Inc.*	188,300		958
Total			13,228

See Notes to Financial Statements.

9

Schedule of Investments (concluded)

December 31, 2009

Investments	Shares	Value (000)
Steel 1.47%
Steel Dynamics, Inc.	156,500	$	2,773
United States Steel Corp.	75,500		4,162
Total			6,935
Textiles Apparel & Shoes 0.24%
Guess?, Inc.	26,900		1,138
Utilities: Electrical 1.70%
CMS Energy Corp.	341,618		5,350
Northeast Utilities	102,163		2,635
Total			7,985
Utilities: Gas Distributors 0.85%
Piedmont Natural Gas Co., Inc.	80,270		2,147
Questar Corp.	44,600		1,854
Total			4,001
Utilities: Telecommunications 1.78%
CenturyTel, Inc.	230,819		8,358
Total Common Stocks (cost $381,153,782)			462,523

Investments	Principal Amount (000)		Value (000)
SHORT-TERM INVESTMENT 1.83%
Repurchase Agreement
Repurchase Agreement dated 12/31/2009, Zero Coupon due 1/4/2010 with Fixed Income Clearing Corp. collateralized by $8,345,000 of Federal Home Loan Mortgage Corp. at 4.125% due 2/24/2011; value: $8,783,113; proceeds: $8,606,596 (cost $8,606,596)	$	8,607	$	8,607
Total Investments in Securities 100.11% (cost $389,760,378)				471,130
Liabilities in Excess of Other Assets (0.11%)				(503	)
Net Assets 100.00%			$	470,627

* Non-income producing security.

^(a) Foreign security traded in U.S. dollars.

See Notes to Financial Statements.

10

Statement of Assets and Liabilities

December 31, 2009

ASSETS:
Investments in securities, at value (cost $389,760,378)	$	471,129,962
Receivables:
Investment securities sold		3,140,934
Dividends		346,440
Capital shares sold		126,454
Prepaid expenses		4,788
Total assets		474,748,578
LIABILITIES:
Payables:
Investment securities purchased		2,577,977
Capital shares reacquired		908,781
Management fee		286,147
Directors’ fees		84,847
Fund administration		15,381
Accrued expenses and other liabilities		248,909
Total liabilities		4,122,042
NET ASSETS	$	470,626,536
COMPOSITION OF NET ASSETS:
Paid-in capital	$	713,295,676
Distributions in excess of net investment income		(56,360	)
Accumulated net realized loss on investments		(323,982,364	)
Net unrealized appreciation on investments		81,369,584
Net Assets	$	470,626,536
Outstanding shares (200 million shares of common stock authorized, $.001 par value)		35,502,432
Net asset value, offering and redemption price per share (Net assets divided by outstanding shares)		$13.26

See Notes to Financial Statements.

11

Statement of Operations

For the Year Ended December 31, 2009

Investment income:
Dividends	$	7,343,696
Interest		1,640
Total investment income		7,345,336
Expenses:
Management fee		3,237,912
Shareholder servicing		1,676,329
Fund administration		172,688
Reports to shareholders		75,040
Professional		49,421
Custody		28,826
Directors’ fees		14,244
Other		14,166
Gross expenses		5,268,626
Expense reductions (See Note 8)		(966	)
Net expenses		5,267,660
Net investment income		2,077,676
Net realized and unrealized gain (loss):
Net realized loss on investments		(227,883,923	)
Net realized loss on redemptions in-kind (See Note 6)		(31,304,963	)
Net change in unrealized appreciation/depreciation on investments		341,935,651
Net realized and unrealized gain		82,746,765
Net Increase in Net Assets Resulting From Operations	$	84,824,441

See Notes to Financial Statements.

12

Statements of Changes in Net Assets

DECREASE IN NET ASSETS	For the Year Ended December 31, 2009			For the Year Ended December 31, 2008
Operations:
Net investment income	$	2,077,676		$	9,628,363
Net realized loss on investments		(227,883,923	)		(93,907,465	)
Net realized loss on redemptions in-kind (See Note 6)		(31,304,963	)		–
Net change in unrealized appreciation/depreciation on investments		341,935,651			(293,182,584	)
Net increase (decrease) in net assets resulting from operations		84,824,441			(377,461,686	)
Distributions to shareholders from:
Net investment income		(2,048,588	)		(9,667,724	)
Net realized gain		—			(32,305,496	)
Total distributions to shareholders		(2,048,588	)		(41,973,220	)
Capital share transactions (See Note 11):
Proceeds from sales of shares		28,129,424			60,325,957
Reinvestment of distributions		2,048,588			41,973,219
Cost of shares reacquired		(93,415,185	)		(197,658,370	)
Redemptions in-kind (See Note 6)		(86,276,287	)		–
Net decrease in net assets resulting from capital share transactions		(149,513,460	)		(95,359,194	)
Net decrease in net assets		(66,737,607	)		(514,794,100	)
NET ASSETS:
Beginning of year	$	537,364,143		$	1,052,158,243
End of year	$	470,626,536		$	537,364,143
Distributions in excess of net investment income	$	(56,360	)	$	(81,846	)

See Notes to Financial Statements.

13

Financial Highlights

	Year Ended 12/31
	2009		2008		2007		2006		2005
Per Share Operating Performance
Net asset value, beginning of year	$10.51		$18.90		$21.78		$21.09		$20.79
Investment operations:
Net investment income(a)	.05		.19		.09		.10		.11
Net realized and unrealized gain (loss)	2.76		(7.68	)	.07		2.47		1.60
Total from investment operations	2.81		(7.49	)	.16		2.57		1.71
Distributions to shareholders from:
Net investment income	(.06	)	(.21	)	(.10	)	(.11	)	(.10	)
Net realized gain	–		(.69	)	(2.94	)	(1.77	)	(1.31	)
Total distributions	(.06	)	(.90	)	(3.04	)	(1.88	)	(1.41	)
Net asset value, end of year	$13.26		$10.51		$18.90		$21.78		$21.09
Total Return(b)	26.62	%	(39.36	)%	.58	%	12.23	%	8.22	%
Ratios to Average Net Assets:
Expenses, including expense reductions	1.22	%	1.15	%	1.12	%	1.12	%	1.13	%
Expenses, excluding expense reductions	1.22	%	1.15	%	1.12	%	1.12	%	1.13	%
Net investment income	.48	%	1.21	%	.40	%	.48	%	.51	%
Supplemental Data:
Net assets, end of year (000)	$470,627		$537,364		$1,052,158		$1,226,358		$1,197,020
Portfolio turnover rate	112.51	%(c)	30.43	%	35.39	%(c)	27.96	%(c)	24.67	%

^(a) Calculated using average shares outstanding during the year.

^(b) Total return assumes the reinvestment of all distributions.

^(c) Includes portfolio securities delivered as a result of redemptions in-kind transactions.

See Notes to Financial Statements.

14

Notes to Financial Statements

1.    ORGANIZATION

Lord Abbett Series Fund, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company, incorporated under Maryland law in 1989. The Company consists of eight separate portfolios (the “Funds”). This report covers the Mid-Cap Value Portfolio (the “Fund”). The Fund is diversified as defined in the Act.

The investment objective of the Fund is capital appreciation through investments, primarily in equity securities, which are believed to be undervalued in the marketplace. The Fund offers Variable Contract class shares (“Class VC Shares”) which are currently issued and redeemed only in connection with investments in, and payments under, variable annuity contracts and variable life insurance policies issued by life insurance and insurance-related companies.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

2.    SIGNIFICANT ACCOUNTING POLICIES

(a) Investment Valuation–Securities actively traded on any recognized U.S. or non-U.S. exchange or on The NASDAQ Stock Market LLC are valued at the last sale price or official closing price on the exchange or system on which they are principally traded. Events occurring after the close of trading on non-U.S. exchanges may result in adjustments to the valuation of foreign securities to more accurately reflect their fair value as of the close of regular trading on the New York Stock Exchange LLC. The Fund may rely on an independent fair valuation service in adjusting the valuations of foreign securities. Unlisted equity securities are valued at the last quoted sale price or, if no sale price is available, at the mean between the most recently quoted bid and asked prices. Securities for which market quotations are not readily available are valued at fair value as determined by management and approved in good faith by the Board of Directors. Short-term securities with 60 days or less remaining to maturity are valued using the amortized cost method, which approximates current market value.

(b) Security Transactions–Security transactions are recorded as of the date that the securities are purchased or sold (trade date). Realized gains and losses on sales of portfolio securities are calculated using the identified-cost method.

(c) Investment Income–Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis as earned. Discounts are accreted and premiums are amortized using the effective interest method. Withholding taxes on foreign dividends have been provided for in accordance with the applicable country’s tax rules and rates.

(d) Income Taxes–It is the policy of the Fund to meet the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all taxable income and capital gains to its shareholders. Therefore, no income tax provision is required.

The Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund’s U.S. federal tax returns

15

Notes to Financial Statements (continued)

remains open for the fiscal years ended December 31, 2006 through December 31, 2009. The statutes of limitations on the Company’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

(e) Expenses–Expenses incurred by the Company that do not specifically relate to an individual fund are generally allocated to the Funds within the Company on a pro rata basis by relative net assets.

(f) Repurchase Agreements–The Fund may enter into repurchase agreements with respect to securities. A repurchase agreement is a transaction in which a Fund acquires a security and simultaneously commits to resell that security to the seller (a bank or securities dealer) at an agreed-upon price on an agreed-upon date. The Fund requires at all times that the repurchase agreement be collateralized by cash, or by securities of the U.S. Government, its agencies, its instrumentalities, or U.S. Government sponsored enterprises having a value equal to, or in excess of, the value of the repurchase agreement (including accrued interest). If the seller of the agreement defaults on its obligation to repurchase the underlying securities at a time when the value of these securities has declined, a Fund may incur a loss upon disposition of the securities.

(g) Fair Value Measurements–In accordance with Financial Accounting Standards Board (“FASB”), Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures (formerly SFAS 157), fair value is defined as the price that the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. ASC 820 established a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk – for example, the risk inherent in a particular valuation technique used to measure fair value (such as a pricing model) and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below:

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

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.); and

• Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

16

Notes to Financial Statements (continued)

The following is a summary of the inputs used as of December 31, 2009 in valuing the Fund’s investments carried at value:

Investment Type*	Level 1 (000)		Level 2 (000)		Level 3 (000)		Total (000)
Common Stocks	$	462,523	$	–	$	–	$	462,523
Repurchase Agreement		–		8,607		–		8,607
Total	$	462,523	$	8,607	$	–	$	471,130

* See Schedule of Investments for values in each industry.

3.    MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Management Fee

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

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

First $1 billion	.75%
Next $1 billion	.70%
Over $2 billion	.65%

For the fiscal year ended December 31, 2009, the effective management fee paid to Lord Abbett was at an annualized rate of .75% of the Fund’s average daily net assets.

Lord Abbett provides certain administrative services to the Fund pursuant to an Administrative Services Agreement at an annual rate of .04% of the Fund’s average daily net assets.

The Company, on behalf of the Fund, has entered into services arrangements with certain insurance companies. 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 the insurance company’s separate account to service and maintain the Variable Contract owners’ accounts. The Fund may also compensate certain insurance companies, third-party administrators and other entities for providing recordkeeping, sub-transfer agency and other administrative services to the Fund. For the fiscal year ended December 31, 2009, the Fund incurred expenses of $1,609,012 for such services arrangements, which have been included in Shareholder Servicing Expense on the Statement of Operations.

Two Directors 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 annually. Taxable net realized gains from investment transactions, reduced by capital loss carryforwards, if any, are declared and distributed to shareholders at least annually. The capital loss carryforward amount, if any, is available to offset future net capital gains. Dividends and distributions to shareholders are recorded on the ex-dividend date. The amounts of dividends and distributions from net investment income and net realized capital gains are determined in accordance with federal income tax

17

Notes to Financial Statements (continued)

regulations which may differ from accounting principles generally accepted in the United States of America. These book/tax differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the components of net assets based on their federal tax basis treatment; temporary differences do not require reclassification. Dividends and distributions, which exceed earnings and profits for tax purposes, are reported as a tax return of capital.

The tax character of distributions paid during the fiscal years ended December 31, 2009 and 2008 was as follows:

	Year Ended 12/31/2009		Year Ended 12/31/2008
Distributions paid from:
Ordinary income	$	2,048,588	$	11,178,159
Net long-term capital gains		—		30,795,061
Total distributions paid	$	2,048,588	$	41,973,220

As of December 31, 2009, the components of accumulated losses on a tax-basis were as follows:

Undistributed ordinary income – net	$	28,487
Total undistributed earnings	$	28,487
Capital loss carryforwards*		(318,598,838	)
Temporary differences		(1,138,113	)
Unrealized gains – net		77,039,324
Total accumulated losses – net	$	(242,669,140	)

*As of December 31, 2009, the capital loss carryforwards, along with the related expiration dates, were as follows:

2016	2017		Total
$59,666,300	$	258,932,538	$	318,598,838

Certain losses incurred after October 31 (“Post-October losses”) within the taxable year are deemed to arise on the first business day of the Fund’s next taxable year. The Fund incurred and will elect to defer net capital losses of $1,053,266 during fiscal 2009.

As of December 31, 2009, the aggregate unrealized security gains and losses based on cost for U.S. federal income tax purposes were as follows:

Tax cost	$	394,090,638
Gross unrealized gain		82,905,706
Gross unrealized loss		(5,866,382	)
Net unrealized security gain	$	77,039,324

The difference between book-basis and tax-basis unrealized gains (losses) is attributable to wash sales.

Permanent items identified during the fiscal year ended December 31, 2009 have been reclassified among the components of net assets based on their tax basis treatment as follows:

Distributions in Excess of Net Investment Income	Accumulated Net Realized Loss		Paid-in Capital
$(3,602)	$	31,308,565	$	(31,304,963	)

18

Notes to Financial Statements (continued)

The permanent differences are attributable to the tax treatment of certain securities and redemptions in-kind.

5.    PORTFOLIO SECURITIES TRANSACTIONS

Purchases and sales of investment securities (excluding short-term investments and including redemptions in-kind) for the fiscal year ended December 31, 2009 were as follows:

Purchases	Sales
$468,774,537	$	601,560,737

There were no purchases or sales of U.S. Government securities for the fiscal year ended December 31, 2009.

6.    REDEMPTIONS IN-KIND

In certain circumstances, the Fund may distribute portfolio securities rather than cash as payments for a redemption of Fund shares (“redemptions in-kind”). For financial reporting purposes, the Fund recognizes a gain on redemptions in-kind to the extent the value of the distributed securities exceeds their costs; the Fund recognizes a loss if cost exceeds value. During the fiscal year ended December 31, 2009, shareholders of the Fund redeemed Fund shares in exchange for Fund portfolio securities, causing the Fund to realize a net loss of $31,304,963.

7.    DIRECTORS’ REMUNERATION

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

8.    EXPENSE REDUCTIONS

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

9.    CUSTODIAN AND ACCOUNTING AGENT

State Street Bank and Trust Company (“SSB”) is the Company’s custodian and accounting agent. SSB performs custodial, accounting and recordkeeping functions relating to portfolio transactions and calculating the Fund’s NAV.

10.    INVESTMENT RISKS

The Fund is subject to the general risks and considerations associated with equity investing, as well as the particular risks associated with value and mid-sized company stocks. The value of an

19

Notes to Financial Statements (concluded)

investment will fluctuate in response to movements in the equity securities market in general and to the changing prospects of individual companies in which the Fund invests. The market may fail to recognize for a long time the intrinsic value of particular value stocks the Fund may hold. The mid-sized company stocks in which the Fund invests may be less able to weather economic shifts or other adverse developments than those of larger, more established companies. In addition, if the Fund’s assessment of a company’s value or prospects for exceeding earnings expectations or market conditions is wrong, the Fund could suffer losses or produce poor performance relative to other funds, even in a rising market.

These factors can affect the Fund’s performance.

11.    SUMMARY OF CAPITAL TRANSACTIONS

Transactions in shares of capital stock were as follows:

	Year Ended December 31, 2009		Year Ended December 31, 2008
Shares sold	2,622,913		4,224,226
Reinvestment of distributions	153,108		4,248,301
Shares reacquired	(8,819,233	)	(13,010,723	)
Redemptions in-kind	(9,596,917	)	–
Decrease	(15,640,129	)	(4,538,196	)

12.    SUBSEQUENT EVENTS

In accordance with the provisions set forth in ASC Topic 855 (formerly SFAS 165), Subsequent Events, adopted by the Fund as of December 31, 2009, management has evaluated subsequent events existing in the Fund’s financial statements through February 16, 2010. Management has determined that there were no material subsequent events that would require recognition or additional disclosure in the Fund’s financial statements through this date.

13.    RECENT ACCOUNTING PRONOUNCEMENTS

In January 2010, the FASB issued Accounting Standards Update 2010-06 “Improving Disclosures about Fair Value Measurements” (“ASU 2010-06”). ASU 2010-06 provides clarifications to existing disclosures required by ASC 820 as well as amends ASC 820 to require certain new disclosures. ASU 2010-06 is substantially effective for interim and annual reporting periods beginning after December 15, 2009. Management is currently evaluating the impact the adoption of ASU 2010-06 will have on the Fund’s financial statement disclosures.

20

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of Lord Abbett Series Fund, Inc.:

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the Mid-Cap Value Portfolio, one of the portfolios constituting the Lord Abbett Series Fund, Inc. (the “Company”), as of December 31, 2009, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2009, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Mid-Cap Value Portfolio of the Lord Abbett Series Fund, Inc. as of December 31, 2009, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

DELOITTE & TOUCHE LLP

New York, New York

February 16, 2010

21

Basic Information About Management

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

Lord, Abbett & Co. LLC (“Lord Abbett”), a Delaware limited liability company, is the Company’s investment adviser.

Interested Directors

The following Directors are partners of Lord Abbett and are “interested persons” of the Company as defined in the Act. Mr. Dow and Ms. Foster are officers, directors, or trustees of each of the 14 Lord Abbett-sponsored funds, which consist of 53 portfolios or series.

Name, Address and Year of Birth	Current Position and Length of Service with Company	Principal Occupation During Past Five Years	Other Directorships
Robert S. Dow Lord, Abbett & Co. LLC 90 Hudson Street Jersey City, NJ 07302 (1945)	Director since 1995, Chairman since 1996	Senior Partner (since 2007), Chief Executive Officer (since 1996) and was formerly Managing Partner (1996 - 2007), joined Lord Abbett in 1972.	N/A
Daria L. Foster Lord, Abbett & Co. LLC 90 Hudson Street Jersey City, NJ 07302 (1954)	Director since 2006	Managing Partner (since 2007) and was formerly Director of Marketing and Client Service, joined Lord Abbett in 1990.	N/A

Independent Directors

The following independent or outside Directors (“Independent Directors”) are also directors or trustees of each of the 14 Lord Abbett-sponsored funds, which consist of 53 portfolios or series.

Name, Address and Year of Birth	Current Position and Length of Service with Company	Principal Occupation During Past Five Years	Other Directorships
E. Thayer Bigelow Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1941)	Director since 1994	Managing General Partner, Bigelow Media, LLC (since 2000); Senior Adviser, Time Warner Inc. (1998 - 2000).	Currently serves as director of Crane Co. (since 1984), Huttig Building Products Inc. (since 1998) and R.H. Donnelley Inc. (since 2009).
William H.T. Bush Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1938)	Director since 1998	Co-founder and Chairman of the Board of the financial advisory firm of Bush – O’Donnell & Company (since 1986).	Currently serves as director of WellPoint, Inc., a health benefits company (since 2002).

22

Basic Information About Management (continued)

Name, Address and Year of Birth	Current Position and Length of Service with Company	Principal Occupation During Past Five Years	Other Directorships
Robert B. Calhoun, Jr. Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1942)	Director since 1998	Senior Advisor of Monitor Clipper Partners, a private equity investment fund (since 1997); President of Clipper Asset Management Corp. (1991 - 2009).	N/A
Julie A. Hill Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1946)	Director since 2004	Owner and CEO of The Hill Company, a business consulting firm (since 1998).	Currently serves as director of WellPoint, Inc., a health benefits company (since 1994) and Lend Lease Corporation Limited (since 2005).
Franklin W. Hobbs Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1947)	Director since 2001	Advisor of One Equity Partners, a private equity firm (since 2004).	Currently serves as a director and Chairman of the Board of GMAC Inc., a financial services firm (since 2009) and as a director of Molson Coors Brewing Company (since 2002).
Thomas J. Neff Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1937)	Director since 1989	Chairman of Spencer Stuart (U.S.), an executive search consulting firm (since 1996).	Currently serves as director of Ace, Ltd. (since 1997) and Hewitt Associates, Inc. (since 2004).
James L.L. Tullis Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1947)	Director since 2006	CEO of Tullis-Dickerson and Co. Inc., a venture capital management firm (since 1990).	Currently serves as director of Crane Co. (since 1998).

Officers

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

Name and Year of Birth	Current Position with Company	Length of Service of Current Position	Principal Occupation During Past Five Years
Robert S. Dow (1945)	Chief Executive Officer and Chairman	Elected in 1996	Senior Partner (since 2007), Chief Executive Officer (since 1996) and was formerly Managing Partner (1996 - 2007), joined Lord Abbett in 1972.

23

Basic Information About Management (continued)

Name and Year of Birth	Current Position with Company	Length of Service of Current Position	Principal Occupation During Past Five Years
Daria L. Foster (1954)	President	Elected in 2006	Managing Partner (since 2007) and was formerly Director of Marketing and Client Service, joined Lord Abbett in 1990.
Robert P. Fetch (1953)	Executive Vice President	Elected in 2003	Partner and Director, joined Lord Abbett in 1995.
Daniel H. Frascarelli (1954)	Executive Vice President	Elected in 2003	Partner and Director, joined Lord Abbett in 1990.
Robert I. Gerber (1954)	Executive Vice President	Elected in 2003	Partner and Chief Investment Officer (since 2007), joined Lord Abbett in 1997 as Director of Taxable Fixed Income Management.
Todd D. Jacobson (1966)	Executive Vice President	Elected in 1999	Portfolio Manager, joined Lord Abbett in 2003.
Eli M. Salzmann (1964)	Executive Vice President	Elected in 2006	Partner and Director, joined Lord Abbett in 1997.
Christopher J. Towle (1957)	Executive Vice President	Elected in 1999	Partner and Director, joined Lord Abbett in 1987.
Paul J. Volovich (1973)	Executive Vice President	Elected in 2005	Partner and Director, joined Lord Abbett in 1997.
James W. Bernaiche (1956)	Chief Compliance Officer	Elected in 2004	Partner and Chief Compliance Officer, joined Lord Abbett in 2001.
Joan A. Binstock (1954)	Chief Financial Officer and Vice President	Elected in 1999	Partner and Chief Operations Officer, joined Lord Abbett in 1999.
Jeff Diamond (1960)	Vice President	Elected in 2008	Portfolio Manager, joined Lord Abbett in 2007 and was formerly a Managing Director at Axia Capital Management LLC (2004 - 2006).
John K. Forst (1960)	Vice President and Assistant Secretary	Elected in 2005	Deputy General Counsel, joined Lord Abbett in 2004.
Michael S. Goldstein (1968)	Vice President	Elected in 1999	Partner and Portfolio Manager, joined Lord Abbett in 1997.
Lawrence H. Kaplan (1957)	Vice President and Secretary	Elected in 1997	Partner and General Counsel, joined Lord Abbett in 1997.

24

Basic Information About Management (concluded)

Name and Year of Birth	Current Position with Company	Length of Service of Current Position	Principal Occupation During Past Five Years
Deepak Khanna (1963)	Vice President	Elected in 2008	Portfolio Manager, rejoined Lord Abbett in 2007 from Jennison Associates LLC (2005 - 2007). Mr. Khanna’s former experience at Lord Abbett included Senior Research Analyst – other investment strategies (2000 - 2005).
David J. Linsen (1974)	Vice President	Elected in 2008	Director and Portfolio Manager, joined Lord Abbett in 2001.
Elizabeth O. MacLean (1966)	Vice President	Elected in 2008	Partner and Portfolio Manager, joined Lord Abbett in 2006 and was formerly a Managing Director/Portfolio Manager at Nomura Corporate Research and Asset Management, Inc. (2000 - 2006).
A. Edward Oberhaus, III (1959)	Vice President	Elected in 1998	Partner and Director, joined Lord Abbett in 1983.
Todor Petrov (1974)	Vice President	Elected in 2008	Portfolio Manager, joined Lord Abbett in 2003.
Thomas R. Phillips (1960)	Vice President and Assistant Secretary	Elected in 2008	Deputy General Counsel, joined Lord Abbett in 2006 and was formerly an attorney at Morgan, Lewis & Bockius LLP.
Randy M. Reynolds (1972)	Vice President	Elected in 2008	Portfolio Manager, joined Lord Abbett in 1999.
Lawrence D. Sachs (1963)	Vice President	Elected in 2010	Partner and Portfolio Manager, joined Lord Abbett in 2001.
Lawrence B. Stoller (1963)	Vice President and Assistant Secretary	Elected in 2007	Senior Deputy General Counsel, joined Lord Abbett in 2007 and was formerly an Executive Vice President and General Counsel at Cohen & Steers Capital Management, Inc. (1999 - 2007).
Bernard J. Grzelak (1971)	Treasurer	Elected in 2003	Partner and Director of Fund Administration, joined Lord Abbett in 2003.

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

25

Approval of Advisory Contract

At meetings held on December 16 and 17, 2009, the Board, including all of the Directors who are not interested persons of the Fund or Lord, Abbett & Co. LLC. (“Lord Abbett”), considered whether to approve the continuation of the existing management agreement between the Fund and Lord Abbett. In addition to the materials the Board had reviewed throughout the course of the year, the Board received materials relating to the management agreement before the meeting and had the opportunity to ask questions and request further information in connection with its consideration. The Board also took into account its familiarity with Lord Abbett gained through its previous meetings and discussions, and the examination of the portfolio management team conducted by members of the Contract Committee during the year.

The materials received by the Board included, but were not limited to, (1) information provided by Lipper Inc. regarding the investment performance of the Fund compared to the investment performance of one or more groups of funds with substantially similar investment objectives (the “performance universe”) and to the investment performance of an appropriate securities index, (2) information on the expense ratios, effective management fee rates, and other expense components, for the Fund and one or more groups of funds with similar objectives and of similar size (the “peer group”), (3) sales and redemption information for the Fund, (4) information regarding Lord Abbett’s financial condition, (5) an analysis of the relative profitability of the management agreement to Lord Abbett, (6) information regarding the distribution arrangements of the Fund, and (7) information regarding the personnel and other resources devoted by Lord Abbett to managing the Fund.

Investment Management Services Generally. The Board considered the investment management services provided by Lord Abbett to the Fund, including investment research, portfolio management, and trading, and Lord Abbett’s commitment to compliance with all relevant legal requirements. The Board also observed that Lord Abbett was solely engaged in the investment management business and accordingly did not experience the conflicts of interest resulting from being engaged in other lines of business. The Board noted that in recent years Lord Abbett had not used brokerage commissions to purchase third-party research, but had changed this practice in 2009, as it had previously discussed with the Board. The Board considered the investment advisory services provided by Lord Abbett to other clients, the fees charged for the services, and the differences in the nature of the services provided to the Fund and other Lord Abbett Funds, on the one hand, and the services provided to other clients, on the other.

Investment Performance and Compliance. The Board reviewed the Fund’s investment performance in relation to that of the performance universe, both in terms of total return and in terms of other statistical measures. The Board observed that the Fund’s investment performance was in the fifth quintile of its performance universe for the nine-month, three-year, and five-year periods, in the fourth quintile for the one-year period, and in the second quintile for the ten-year periods. The Board also observed that the investment performance was lower than that of the Lipper Variable Underlying Funds Mid-Cap Value Index for the nine-month, one-year, three-year, and five-year periods and higher than that of the Index for the ten-year period.

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

26

management personnel. The Board also observed that in 2008, one of the Fund’s portfolio managers, Edward von der Linde, had resigned from Lord Abbett, at which time Jeff Diamond began assisting Howard Hansen, the Fund’s other portfolio manager, and with him exercised primarily responsibility for the daily management of the Fund’s portfolio. The Board also observed that in 2009, Mr. Hansen resigned from Lord Abbett, at which time Robert Fetch joined Mr. Diamond in exercising primarily responsibility for the daily management of the Fund’s portfolio. The Board noted that Mr. Fetch had a very strong long-term performance record managing the Lord Abbett Small Cap Value Fund. The Board determined that Lord Abbett had the expertise and resources to manage the Fund effectively.

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

Expenses. The Board considered the expense levels of the Fund and the expense levels of the peer group. The Board considered the fiscal periods on which the peer group information was based, and noted that such periods ended before September 30, 2009. The Board noted that the expense levels of the peer group likely would have been different for periods ending September 30, 2009, due to the lower asset levels prevailing in the mutual fund industry during much of 2009. The Board also observed that the Fund’s transfer agency expenses were likely to decrease in 2010, as a result of renegotiation of the transfer agency agreement. It also considered the amount and nature of the fees paid by shareholders. The Board observed that for the year-to-date period ended September 30, 2009 (annualized) the contractual management and administrative services fee rates were approximately two basis points above the median of the peer group and the actual management and administrative services fee rates were approximately the same as the median of the peer group. The Board also observed that for the year-to-date period ended September 30, 2009 (annualized) the total expense ratio of the Fund was approximately twenty-one basis points above the median of the peer group.

Profitability. The Board considered the level of Lord Abbett’s profits in managing the Fund, including a review of Lord Abbett’s methodology for allocating its costs to its management of the Fund. The Board concluded that the allocation methodology had a reasonable basis and was appropriate. It considered any profits realized by Lord Abbett in connection with the operation of the Fund and whether the amount of profit was fair for the management of the Fund. The Board also considered the profits realized from other businesses of Lord Abbett, which may benefit from or be related to the Fund’s business. The Board considered Lord Abbett’s profit margins in comparison with available industry data, both accounting for and ignoring marketing and distribution expenses, and how those profit margins could affect Lord Abbett’s ability to recruit and retain investment personnel. The Board recognized that Lord Abbett’s profitability was a factor in enabling it to attract and retain qualified investment management personnel to provide services to the Fund. The Board noted that Lord Abbett’s overall profitability had decreased in its 2009 fiscal year, largely due to declines in market prices and shareholder redemptions. The Board concluded that Lord Abbett’s profitability overall and as to the Fund was not excessive.

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

27

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

Alternative Arrangements. The Board considered whether, instead of approving continuation of the management agreement, it might be in the best interests of the Fund to implement one or more alternative arrangements, such as continuing to employ Lord Abbett, but on different terms.

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

28

Householding

The 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 need additional copies or do not want your mailings to be “householded,” please call Lord Abbett at 888-522-2388 or send a written request with your name, the name of your fund or funds and your account number or numbers to Lord Abbett Family of Funds, P.O. Box 219336, Kansas City, MO 64121.

Proxy Voting Policies, Procedures and Records

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

Shareholder Reports and Quarterly Portfolio Disclosure

The Fund is required to file its complete schedule of portfolio holdings with the SEC for its first and third fiscal quarters on Form N-Q. Copies of the filings are available without charge, upon request on the SEC’s Website at www.sec.gov and may be available by calling Lord Abbett at 888-522-2388. You can also obtain copies of Form N-Q by (i) visiting the SEC’s Public Reference Room in Washington, DC (information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330); (ii) sending your request and duplicating fee to the SEC’s Public Reference Section, Washington, DC 20549-1520; or (iii) sending your request electronically, after paying a duplicating fee, to publicinfo@sec.gov.

Tax Information

For corporate shareholders, 100% of the ordinary income distribution paid by the Fund during the fiscal year ended December 31, 2009 qualified for the dividends received deduction.

29

This report, when not used for the general information of shareholders of the Fund, is to be distributed only if preceded or accompanied by a current fund prospectus.

Lord Abbett mutual fund shares are distributed by LORD ABBETT DISTRIBUTOR LLC.

Lord Abbett Series Fund, Inc.

Mid-Cap Value Portfolio

LASFMCV-2-1209

(02/10)

Item 2: Code of Ethics.

(a) In accordance with applicable requirements, the Registrant adopted a Sarbanes-Oxley Code of Ethics on June 19, 2003 that applies to the principal executive officer and senior financial officers of the Registrant (“Code of Ethics”). The Code of Ethics was in effect during the fiscal year ended December 31, 2009 (the “Period”).

(b) Not applicable.

(c) The Registrant has not amended the Code of Ethics as described in Form N-CSR during the Period.

(d) The Registrant has not granted any waiver, including an implicit waiver, from a provision of the Code of Ethics as described in Form N-CSR during the Period.

(e) Not applicable.

(f) See Item 12(a)(1) concerning the filing of the Code of Ethics. The Registrant will provide a copy of the Code of Ethics to any person without charge, upon request. To obtain a copy, please call Lord Abbett at 888-522-2388.

Item 3: Audit Committee Financial Expert.

The Registrant’s board of directors has determined that each of the following independent directors who are members of the audit committee is an audit committee financial expert: E. Thayer Bigelow, Robert B. Calhoun Jr., Franklin W. Hobbs, and James L.L. Tullis. Each of these persons is independent within the meaning of the Form N-CSR.

Item 4: Principal Accountant Fees and Services.

In response to sections (a), (b), (c) and (d) of Item 4, the aggregate fees billed to the Registrant for the fiscal years ended December 31, 2009 and 2008 by the Registrant’s principal accounting firm, Deloitte & Touche LLP, the member firms of Deloitte Touche Tohmatsu and their respective affiliates (collectively, “Deloitte”) were as follows:

	Fiscal year ended:
	2009	2008
Audit Fees {a}	$282,500	$282,500
Audit-Related Fees	- 0 -	- 0 -
Total audit and audit-related fees	282,500	282,500
Tax Fees {b}	46,936	47,082
All Other Fees	- 0 -	- 0 -
Total Fees	$329,436	$329,582

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

{b} Fees for the fiscal year ended December 31, 2009 and 2008 consist of fees for preparing the U.S. Income Tax Return for Regulated Investment Companies, New Jersey Corporation Business Tax Return, New Jersey Annual Report Form, U.S. Return of Excise Tax on Undistributed Income of Investment Companies, IRS Forms 1099-MISC and 1096 Annual Summary and Transmittal of U.S. Information Returns.

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

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

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

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

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

(f) Not applicable.

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

The aggregate non-audit fees billed by Deloitte for services rendered to the Registrant’s investment adviser, Lord, Abbett & Co. LLC (“Lord Abbett”), for the fiscal years ended December 31, 2009 and 2008 were:

	Fiscal year ended:
	2009	2008
All Other Fees {a}	$161,385	$155,939

{a} Consist of fees for Independent Services Auditors’ Report on Controls Placed in Operation and Tests of Operating Effectiveness related to Lord Abbett’s Asset Management Services (“SAS 70 Report”).

The aggregate non-audit fees billed by Deloitte for services rendered to entities under the common control of Lord Abbett for the fiscal years ended December 31, 2009 and 2008 were:

	Fiscal year ended:
	2009	2008
All Other Fees	$ - 0 -	$ - 0-

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

Item 5: Audit Committee of Listed Registrants.

Not applicable.

Item 6: Investments.

Not applicable.

Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8: Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9: Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10: Submission of Matters to a Vote of Security Holders.

Not applicable.

Item 11: Controls and Procedures.

(a) Based on their evaluation of the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) as of a date within 90 days prior to the filing date of this report, the Chief Executive Officer and Chief Financial Officer of the Registrant have concluded that such disclosure controls and procedures are reasonably designed and effective to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to them by others within those entities.

(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12: Exhibits.

(a)(1) Amendments to Code of Ethics — Not applicable.

(a)(2) Certification of each principal executive officer and principal financial officer of the Registrant as required by Rule 30a-2 under the Investment Company Act of 1940 is attached hereto as a part of EX-99.CERT.

(a)(3) Not applicable.

(b) Certification of each principal executive officer and principal financial officer of the Registrant as required by Section 906 of the Sarbanes-Oxley Act of 2002 is provided as a part of EX-99.906CERT.

SIGNATURES

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

LORD ABBETT SERIES FUND, INC.
By:	/s/    Robert S. Dow
Robert S. Dow
Chief Executive Officer and Chairman

Date: February 16, 2010

By:	/s/    Joan A. Binstock
Joan A. Binstock
Chief Financial Officer and Vice President

Date: February 16, 2010

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

By:	/s/    Robert S. Dow
Robert S. Dow
Chief Executive Officer and Chairman

Date: February 16, 2010

By:	/s/    Joan A. Binstock
Joan A. Binstock
Chief Financial Officer and Vice President

Date: February 16, 2010