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: 12/31/2010

Item 1: Reports to Shareholders.

2010

LORD ABBETT

ANNUAL

REPORT    

Lord Abbett

Series Fund—Bond Debenture Portfolio

For the fiscal year ended December 31, 2010

Lord Abbett Series Fund — Bond Debenture Portfolio

Annual Report

For the fiscal year ended December 31, 2010

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 performance of the Lord Abbett Series Fund — Bond Debenture Portfolio for the fiscal year ended December 31, 2010. 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

For the fiscal year ended December 31, 2010, the Fund returned 12.31%, 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,¹ which returned 6.54% over the same period.

Many fixed-income categories posted positive returns during the year, and corporate credit assets, including convertible securities, lower-rated investment-grade bonds, high-yield bonds, and floating-rate loans, led the way. Historically low interest rates and strong investor demand created a positive environment for corporate credit during the year, as many companies were able to refinance existing debt, extend upcoming bond maturities, or otherwise enhance their financial flexibility. Amid these conditions, default rates on high-yield bonds and floating-rate loans dropped to historically low levels of about 1% and 2%, respectively, at the end of the year.

1

The Fund’s performance was helped by increased exposure to credit-sensitive assets such as high-yield corporates and convertible securities, and maintaining a 0% allocation to 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 Fund performance were automobile parts and equipment, banking, and energy/exploration and production.

Among the industries detracting from Fund performance were electric-generation and health services. The returns within printing and publishing, although positive, were also among the lowest. Although the printing and publishing industry has recovered some of the losses experienced during the recession, it continues to be challenged by the decline in print advertising sales as consumers continue to shift from newspapers to the internet, and the economy continues to recover.

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 Barclays Capital U.S. Aggregate Bond Index represents securities that are U.S. domestic, taxable, nonconvertible, and U.S. 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.

Unless otherwise specified, the index reflects total return, with all dividends reinvested. The index is unmanaged, does not reflect the deduction of fees or expenses, and is not available for direct investment.

Important Performance and Other Information

Performance data quoted in the following pages reflect past performance and are no guarantee of future results. Current performance may be higher or lower than the performance quoted. The investment return and principal value of an investment in 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, 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 above are as of December 31, 2010; 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.

2

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 Dec 31, 2010

	1 Year		5 Years		Life of Class
Class VC2		12.31%		7.63%		8.03%

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

²    The Class VC shares commenced operations and performance for the Class began on December 3, 2001.

3

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, 2010 through December 31, 2010).

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 7/1/10 – 12/31/10” 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.

4

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†
	7/1/10		12/31/10		7/1/10 – 12/31/10
Class VC
Actual	$	1,000.00	$	1,093.10	$	4.75
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.68	$	4.58

^† Net expenses are equal to the Fund’s annualized expense ratio of 0.90%, 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, 2010

Sector*	%**
Agency		0.49%
Automotive		3.00%
Banking		4.75%
Basic Industry		10.25%
Capital Goods		9.60%
Consumer Cyclical		4.95%
Consumer Discretionary		0.07%
Consumer Non-Cyclical		3.87%
Energy		11.38%
Financial Services		3.55%
Healthcare		9.47%
Insurance		1.49%
Local-Authority		0.15%
Media		6.93%
Municipal		0.06%
Real Estate		1.35%
Services		10.14%
Technology & Electronics		7.18%
Telecommunications		7.87%
Utility		2.54%
Short-Term Investment		0.91%
		100.00%

* A sector may comprise several industries.

** Represents percent of total investments.

5

Schedule of Investments

December 31, 2010

Investments					Shares (000)		Value
LONG-TERM INVESTMENTS 98.26%
COMMON STOCKS 1.06%
Auto Parts & Equipment 0.19%
Cooper-Standard Holdings, Inc.*						3	$	150,075
Cooper-Standard Holdings, Inc.*(a)						19		866,340
Total								1,016,415
Chemicals 0.07%
LyondellBasell Industries NV Class A (Netherlands)*(b)						12		412,800
Forestry/Paper 0.07%
Smurfit-Stone Container Corp.*						15		384,000
Life Insurance 0.09%
MetLife, Inc.						11		470,353
Media: Cable 0.16%
Charter Communications, Inc. Class A*(c)						23		883,432
Metals/Mining (Excluding Steel) 0.20%
Barrick Gold Corp. (Canada)(b)						20		1,088,488
Pharmaceuticals 0.28%
Mylan, Inc.*						73		1,546,399
Total Common Stocks (cost $3,334,090)								5,801,887
	Interest Rate		Maturity Date		Principal Amount (000)
CONVERTIBLE BONDS 11.61%
Airlines 0.30%
AMR Corp.		6.25%		10/15/2014	$	375		426,563
United Continental Holdings, Inc.		4.50%		6/30/2021		1,175		1,195,562
Total								1,622,125
Automakers 0.37%
Ford Motor Co.		4.25%		11/15/2016		1,000		2,003,750

See Notes to Financial Statements.

6

Schedule of Investments (continued)

December 31, 2010

Investments	Interest Rate		Maturity Date		Principal Amount (000)		Value
Beverages 0.40%
Central European Distribution Corp. (Poland)(b)		3.00%		3/15/2013	$	1,400	$	1,305,500
Molson Coors Brewing Co.		2.50%		7/30/2013		750		871,875
Total								2,177,375
Computer Hardware 0.54%
Intel Corp.		2.95%		12/15/2035		1,250		1,251,562
SanDisk Corp.		1.00%		5/15/2013		1,750		1,693,125
Total								2,944,687
Department Stores 0.09%
Saks, Inc.†		7.50%		12/1/2013		230		485,300
Diversified Capital Goods 0.53%
General Cable Corp. (2.25% after 11/15/19)~		4.50%		11/15/2029		475		567,031
Ingersoll-Rand Co., Ltd.		4.50%		4/15/2012		300		797,250
Textron, Inc.		4.50%		5/1/2013		800		1,524,000
Total								2,888,281
Electronics 0.29%
Itron, Inc.		2.50%		8/1/2026		1,500		1,586,250
Food: Wholesale 0.26%
Archer Daniels Midland Co.		0.875%		2/15/2014		1,400		1,436,750
Health Services 0.48%
Human Genome Sciences, Inc.		2.25%		10/15/2011		1,050		1,681,312
Human Genome Sciences, Inc.		2.25%		8/15/2012		200		304,500
Omnicare, Inc.		3.75%		12/15/2025		550		616,000
Total								2,601,812
Integrated Energy 0.14%
SunPower Corp.		4.75%		4/15/2014		825		764,156
Machinery 0.44%
Roper Industries, Inc.		Zero Coupon		1/15/2034		2,500		2,396,875
Media: Broadcast 0.15%
Sinclair Broadcast Group, Inc.		6.00%		9/15/2012		835		831,869

See Notes to Financial Statements.

7

Schedule of Investments (continued)

December 31, 2010

Investments	Interest Rate		Maturity Date		Principal Amount (000)		Value
Media: Diversified 0.15%
Liberty Media LLC (convertible into Viacom, Inc., Class B and CBS Corp.)		3.25%		3/15/2031	$	1,200	$	828,000
Media: Services 0.22%
Interpublic Group of Cos., Inc.		4.25%		3/15/2023		600		671,250
Omnicom Group, Inc.		Zero Coupon		7/1/2038		500		531,875
Total								1,203,125
Medical Products 0.93%
Allergan, Inc.		1.50%		4/1/2026		2,750		3,121,250
Fisher Scientific International, Inc.		3.25%		3/1/2024		425		595,531
Medtronic, Inc.		1.625%		4/15/2013		550		556,188
NuVasive, Inc.		2.25%		3/15/2013		800		784,000
Total								5,056,969
Metals/Mining (Excluding Steel) 0.45%
Newmont Mining Corp.		1.25%		7/15/2014		1,000		1,438,750
Newmont Mining Corp.		3.00%		2/15/2012		500		698,125
Patriot Coal Corp.		3.25%		5/31/2013		350		332,063
Total								2,468,938
Monoline Insurance 0.13%
Radian Group, Inc.		3.00%		11/15/2017		725		713,219
Oil Field Equipment & Services 0.07%
Exterran Energy Corp.		4.75%		1/15/2014		400		397,000
Packaging 0.27%
Owens-Brockway Glass Container, Inc.†		3.00%		6/1/2015		1,475		1,491,594
Pharmaceuticals 1.79%
ALZA Corp.		Zero Coupon		7/28/2020		1,000		886,250
BioMarin Pharmaceutical, Inc.		2.50%		3/29/2013		1,000		1,705,000
Cephalon, Inc.		2.00%		6/1/2015		450		633,938
Gilead Sciences, Inc.		0.625%		5/1/2013		1,600		1,772,000
Salix Pharmaceuticals Ltd.		2.75%		5/15/2015		1,000		1,278,750
Teva Pharmaceutical Finance Co. BV (Israel)(b)		1.75%		2/1/2026		2,000		2,202,500
Vertex Pharmaceuticals, Inc.		3.35%		10/1/2015		1,250		1,270,312
Total								9,748,750

See Notes to Financial Statements.

8

Schedule of Investments (continued)

December 31, 2010

Investments	Interest Rate		Maturity Date		Principal Amount (000)			Value
Real Estate Investment Trusts 0.15%
ProLogis		3.25%		3/15/2015	$	725		$	806,563
Software/Services 2.15%
Alliance Data Systems Corp.		1.75%		8/1/2013		750			808,125
Concur Technologies, Inc.†		2.50%		4/15/2015		1,120			1,328,600
EMC Corp.		1.75%		12/1/2011		1,250			1,814,063
GSI Commerce, Inc.		2.50%		6/1/2027		1,000			1,091,250
Informatica Corp.		3.00%		3/15/2026		700			1,539,125
Nuance Communications, Inc.		2.75%		8/15/2027		1,810			2,133,537
Symantec Corp.		1.00%		6/15/2013		1,400			1,597,750
Xilinx, Inc.†		2.625%		6/15/2017		1,200			1,413,000
Total									11,725,450
Support: Services 0.26%
CRA International, Inc.		2.875%		6/15/2034		400			420,500
FTI Consulting, Inc.		3.75%		7/15/2012		750			963,750
Total									1,384,250
Telecommunications Equipment 0.64%
Ciena Corp.†		3.75%		10/15/2018		1,250			1,565,625
JDS Uniphase Corp.		1.00%		5/15/2026		2,000			1,905,000
Total									3,470,625
Telecommunications: Wireless 0.41%
SBA Communications Corp.		4.00%		10/1/2014		1,500			2,235,000
Total Convertible Bonds (cost $56,542,177)									63,268,713
					Shares (000)
CONVERTIBLE PREFERRED STOCKS 3.72%
Agency/Government Related 0.00%
Fannie Mae		8.75%				20			10,000
Auto Parts & Equipment 0.02%
Cooper-Standard Holdings, Inc. PIK(a)		7.00%				–	(d)		123,025
Automakers 0.16%
General Motors Co.		4.75%				16			871,171

See Notes to Financial Statements.

9

Schedule of Investments (continued)

December 31, 2010

Investments	Interest Rate				Shares (000)		Value
Banking 1.52%
Bank of America Corp.		7.25%				3	$	2,392,425
Citigroup, Inc.		7.50%				16		2,118,695
Fifth Third Bancorp		8.50%				12		1,783,080
Wells Fargo & Co.		7.50%				2		2,001,100
Total								8,295,300
Electric: Integrated 0.08%
PPL Corp.		9.50%				7		406,778
Energy: Exploration & Production 0.79%
Apache Corp.		6.00%				65		4,306,900
Gas Distribution 0.41%
El Paso Corp.		4.99%				1		1,176,500
Williams Cos., Inc. (The)		5.50%				9		1,060,781
Total								2,237,281
Investments & Miscellaneous Financial Services 0.23%
AMG Capital Trust I		5.10%				25		1,254,688
Multi-Line Insurance 0.21%
Hartford Financial Services Group, Inc. (The)		7.25%				45		1,152,450
Railroads 0.30%
Kansas City Southern		5.125%				1		1,600,250
Total Convertible Preferred Stocks (cost $17,825,829)								20,257,843
			Maturity Date		Principal Amount (000)
FOREIGN BOND 0.10%
Netherlands
Ziggo Bond Co. BV†(e) (cost $523,445)		8.00%		5/15/2018	EUR	400		553,228
GOVERNMENT SPONSORED ENTERPRISES BOND 0.48%
Federal National Mortgage Assoc. (cost $2,549,743)		3.25%		4/9/2013	$	2,500		2,640,845

See Notes to Financial Statements.

10

Schedule of Investments (continued)

December 31, 2010

Investments	Interest Rate		Maturity Date		Principal Amount (000)		Value
HIGH YIELD CORPORATE BONDS 80.93%
Aerospace/Defense 1.44%
Alliant Techsystems, Inc.		6.875%		9/15/2020	$	225	$	232,594
Esterline Technologies Corp.		6.625%		3/1/2017		650		659,750
Esterline Technologies Corp.†		7.00%		8/1/2020		550		569,250
L-3 Communications Corp.		6.375%		10/15/2015		2,100		2,173,500
Mantech International Corp.		7.25%		4/15/2018		800		840,000
Moog, Inc.		6.25%		1/15/2015		550		558,250
Spirit Aerosystems, Inc.†		6.75%		12/15/2020		1,600		1,608,000
Spirit Aerosystems, Inc.		7.50%		10/1/2017		595		621,775
Triumph Group, Inc.		8.00%		11/15/2017		575		600,875
Total								7,863,994
Airlines 0.46%
Delta Air Lines, Inc.		4.95%		5/23/2019		250		250,938
Delta Air Lines, Inc.†		9.50%		9/15/2014		180		196,875
United Airlines, Inc.		6.636%		7/2/2022		500		500,835
United Airlines, Inc.†		9.875%		8/1/2013		900		974,250
United Airlines, Inc.†		12.00%		11/1/2013		525		581,437
Total								2,504,335
Apparel/Textiles 0.47%
Hanesbrands, Inc.†		6.375%		12/15/2020		700		668,500
Levi Strauss & Co.		7.625%		5/15/2020		475		492,813
Levi Strauss & Co.		8.875%		4/1/2016		850		901,000
Quiksilver, Inc.		6.875%		4/15/2015		500		491,250
Total								2,553,563
Auto Loans 0.23%
Ford Motor Credit Co. LLC		7.25%		10/25/2011		1,000		1,033,749
Hyundai Capital America†		3.75%		4/6/2016		225		221,239
Total								1,254,988
Auto Parts & Equipment 1.37%
BorgWarner, Inc.		4.625%		9/15/2020		325		321,481
Cooper-Standard Automotive, Inc.†		8.50%		5/1/2018		1,000		1,065,000
Goodyear Tire & Rubber Co. (The)		10.50%		5/15/2016		700		801,500
Pinafore LLC/Pinafore, Inc.†		9.00%		10/1/2018		500		542,500
Stanadyne Corp.		10.00%		8/15/2014		375		381,563

See Notes to Financial Statements.

11

Schedule of Investments (continued)

December 31, 2010

Investments	Interest Rate		Maturity Date			Principal Amount (000)		Value
Auto Parts & Equipment (continued)
Stoneridge, Inc.†		9.50%		10/15/2017		$	475	$	515,375
Tenneco, Inc.†		6.875%		12/15/2020			775		796,312
Tenneco, Inc.†		7.75%		8/15/2018			175		186,375
TRW Automotive, Inc.†		7.25%		3/15/2017			1,575		1,704,937
TRW Automotive, Inc.†		8.875%		12/1/2017			1,000		1,125,000
Total									7,440,043
Automakers 0.63%
Ford Motor Co.		7.45%		7/16/2031			1,375		1,479,844
Navistar International Corp.		8.25%		11/1/2021			1,380		1,490,400
Oshkosh Corp.		8.50%		3/1/2020			425		468,562
Total									3,438,806
Banking 3.06%
Ally Financial, Inc.†		7.50%		9/15/2020			850		895,687
Ally Financial, Inc.		8.30%		2/12/2015			1,700		1,874,250
Bank of America Corp.		5.75%		12/1/2017			750		781,579
Capital One Capital VI		8.875%		5/15/2040			1,500		1,573,125
Discover Bank		8.70%		11/18/2019			500		589,498
Fifth Third Capital Trust IV		6.50%		4/15/2037			1,300		1,244,750
Huntington BancShares, Inc.		7.00%		12/15/2020			325		342,805
JPMorgan Chase & Co.		6.00%		1/15/2018			1,500		1,677,547
JPMorgan Chase & Co.		7.90%		–	(f)		450		479,957
Morgan Stanley		6.00%		4/28/2015			1,500		1,626,052
Regions Bank		7.50%		5/15/2018			550		567,297
Regions Financial Corp.		7.75%		11/10/2014			375		390,323
Royal Bank of Scotland Group plc (The) (United Kingdom)(b)		6.40%		10/21/2019			375		378,011
Silicon Valley Bank		6.05%		6/1/2017			1,000		1,015,889
SVB Financial Group		5.375%		9/15/2020			600		578,020
Wachovia Capital Trust III		5.80%		–	(f)		750		653,437
Washington Mutual Bank(g)		6.875%		6/15/2011			1,250		4,688
Zions Bancorporation		7.75%		9/23/2014			1,900		1,982,359
Total									16,655,274
Beverages 0.47%
CEDC Finance Corp. International, Inc.†		9.125%		12/1/2016			625		667,188
Constellation Brands, Inc.		7.25%		5/15/2017			1,775		1,888,156
Total									2,555,344

See Notes to Financial Statements.

12

Schedule of Investments (continued)

December 31, 2010

Investments	Interest Rate		Maturity Date		Principal Amount (000)		Value
Brokerage 0.45%
Cantor Fitzgerald LP†		7.875%		10/15/2019	$	400	$	412,579
Lazard Group LLC		7.125%		5/15/2015		850		916,135
Raymond James Financial, Inc.		8.60%		8/15/2019		950		1,127,646
Total								2,456,360
Building & Construction 0.50%
K. Hovnanian Enterprises, Inc.		10.625%		10/15/2016		500		515,000
KB Home		9.10%		9/15/2017		1,000		1,065,000
Lennar Corp.		12.25%		6/1/2017		950		1,149,500
Total								2,729,500
Building Materials 0.73%
Building Materials Corp. of America†		7.50%		3/15/2020		550		562,375
Cemex Finance LLC†		9.50%		12/14/2016		250		259,063
Interline Brands, Inc.†		7.00%		11/15/2018		825		841,500
Masco Corp.		7.125%		3/15/2020		1,250		1,309,866
Owens Corning, Inc.		9.00%		6/15/2019		875		1,028,112
Total								4,000,916
Chemicals 3.58%
Airgas, Inc.		7.125%		10/1/2018		1,250		1,387,500
Ashland, Inc.		9.125%		6/1/2017		825		954,937
Celanese US Holdings LLC†		6.625%		10/15/2018		1,325		1,371,375
CF Industries, Inc.		7.125%		5/1/2020		400		439,000
Chemtura Corp.†		7.875%		9/1/2018		1,250		1,331,250
Huntsman International LLC		8.625%		3/15/2020		2,000		2,185,000
INEOS Finance plc (United Kingdom)†(b)		9.00%		5/15/2015		250		267,188
INEOS Group Holdings plc (United Kingdom)†(b)		8.50%		2/15/2016		1,500		1,436,250
INVISTA†		9.25%		5/1/2012		161		164,220
Lyondell Chemical Co.†		8.00%		11/1/2017		1,349		1,495,704
Momentive Performance Materials, Inc.†		9.00%		1/15/2021		1,250		1,321,875
Mosaic Co. (The)†		7.375%		12/1/2014		500		517,572
Mosaic Global Holdings, Inc.		7.30%		1/15/2028		1,050		1,203,850
Nalco Co.†		6.625%		1/15/2019		850		873,375
Nalco Co.		8.25%		5/15/2017		675		734,906
Nalco Co.		8.875%		11/15/2013		875		893,047
Phibro Animal Health Corp.†		9.25%		7/1/2018		1,350		1,397,250
Potash Corp. of Saskatchewan, Inc. (Canada)(b)		4.875%		3/30/2020		500		523,324

See Notes to Financial Statements.

13

Schedule of Investments (continued)

December 31, 2010

Investments	Interest Rate		Maturity Date		Principal Amount (000)		Value
Chemicals (continued)
Rockwood Specialties Group, Inc.		7.50%		11/15/2014	$	1,008	$	1,038,240
Total								19,535,863
Computer Hardware 0.54%
Brocade Communications Systems, Inc.		6.625%		1/15/2018		1,250		1,321,875
Brocade Communications Systems, Inc.		6.875%		1/15/2020		750		802,500
Seagate HDD Cayman†		6.875%		5/1/2020		875		840,000
Total								2,964,375
Consumer/Commercial/Lease Financing 2.00%
American General Finance Corp.		6.90%		12/15/2017		1,725		1,401,562
AWAS Aviation Capital Ltd. (Ireland)†(b)		7.00%		10/15/2016		1,000		996,250
CIT Group, Inc.		7.00%		5/1/2016		5,000		5,031,250
International Lease Finance Corp.†		7.125%		9/1/2018		400		427,000
International Lease Finance Corp.		8.25%		12/15/2020		275		283,594
International Lease Finance Corp.†		8.625%		9/15/2015		700		754,250
International Lease Finance Corp.†		8.75%		3/15/2017		1,000		1,075,000
Provident Funding Associates†		10.25%		4/15/2017		900		938,250
Total								10,907,156
Consumer Products 0.74%
Church & Dwight Co., Inc.		3.35%		12/15/2015		200		200,858
Elizabeth Arden, Inc.		7.75%		1/15/2014		1,625		1,656,484
Jarden Corp.		6.125%		11/15/2022		750		719,063
Scotts Miracle-Gro Co. (The)†		6.625%		12/15/2020		1,475		1,482,375
Total								4,058,780
Department Stores 0.80%
J.C. Penney Corp., Inc.		7.125%		11/15/2023		300		311,250
J.C. Penney Corp., Inc.		7.95%		4/1/2017		250		273,750
Macy’s Retail Holdings, Inc.		5.90%		12/1/2016		1,700		1,823,250
Macy’s Retail Holdings, Inc.		6.375%		3/15/2037		945		930,825
Macy’s Retail Holdings, Inc.		7.875%		7/15/2015		850		998,750
Total								4,337,825
Diversified Capital Goods 2.52%
Actuant Corp.		6.875%		6/15/2017		2,100		2,157,750
Amsted Industries, Inc.†		8.125%		3/15/2018		875		932,969
Belden, Inc.		7.00%		3/15/2017		1,750		1,780,625

See Notes to Financial Statements.

14

Schedule of Investments (continued)

December 31, 2010

Investments	Interest Rate		Maturity Date		Principal Amount (000)		Value
Diversified Capital Goods (continued)
Belden, Inc.		9.25%		6/15/2019	$	800	$	881,000
Mueller Water Products, Inc.		7.375%		6/1/2017		1,275		1,236,750
Park-Ohio Industries, Inc.		8.375%		11/15/2014		1,025		1,045,500
RBS Global, Inc./Rexnord LLC		8.50%		5/1/2018		1,750		1,868,125
Sensus USA, Inc.		8.625%		12/15/2013		405		413,100
SPX Corp.†		6.875%		9/1/2017		1,300		1,387,750
Timken Co.		6.00%		9/15/2014		875		963,986
Valmont Industries, Inc.		6.625%		4/20/2020		1,000		1,042,090
Total								13,709,645
Electric: Generation 0.89%
Dynegy Holdings, Inc.		7.75%		6/1/2019		575		386,688
Dynegy Holdings, Inc.		8.375%		5/1/2016		1,500		1,128,750
Edison Mission Energy		7.75%		6/15/2016		400		346,000
Mirant Americas Generation LLC		9.125%		5/1/2031		1,275		1,262,250
Texas Competitive Electric Holdings Co. LLC		10.25%		11/1/2015		3,000		1,710,000
Total								4,833,688
Electric: Integrated 1.55%
AES Corp. (The)		8.00%		10/15/2017		1,600		1,700,000
Commonwealth Edison Co.		5.80%		3/15/2018		1,900		2,133,567
Connecticut Light & Power Co. (The)		5.50%		2/1/2019		1,100		1,224,227
Duquesne Light Holdings, Inc.†		6.40%		9/15/2020		1,000		994,328
EDP Finance BV (Netherlands)†(b)		4.90%		10/1/2019		135		115,275
EDP Finance BV (Netherlands)†(b)		6.00%		2/2/2018		100		93,599
PECO Energy Co.		5.35%		3/1/2018		500		555,473
PSEG Power LLC		5.32%		9/15/2016		1,500		1,643,330
Total								8,459,799
Electronics 1.04%
Advanced Micro Devices, Inc.†		7.75%		8/1/2020		1,350		1,407,375
Freescale Semiconductor, Inc.†		9.25%		4/15/2018		500		552,500
Freescale Semiconductor, Inc.†		10.75%		8/1/2020		1,300		1,423,500
KLA-Tencor Corp.		6.90%		5/1/2018		875		963,902
NXP BV LLC (Netherlands)(b)		9.50%		10/15/2015		500		536,250
NXP BV LLC (Netherlands)†(b)		9.75%		8/1/2018		700		791,000
Total								5,674,527

See Notes to Financial Statements.

15

Schedule of Investments (continued)

December 31, 2010

Investments	Interest Rate		Maturity Date		Principal Amount (000)		Value
Energy: Exploration & Production 4.77%
Berry Petroleum Co.		6.75%		11/1/2020	$	1,550	$	1,561,625
Brigham Exploration Co.†		8.75%		10/1/2018		725		786,625
Chesapeake Energy Corp.		6.625%		8/15/2020		1,100		1,089,000
Chesapeake Energy Corp.		7.25%		12/15/2018		750		780,000
Cimarex Energy Co.		7.125%		5/1/2017		1,925		2,006,812
Concho Resources, Inc.		7.00%		1/15/2021		1,550		1,592,625
Concho Resources, Inc.		8.625%		10/1/2017		995		1,089,525
Continental Resources, Inc.		7.375%		10/1/2020		650		692,250
Continental Resources, Inc.		8.25%		10/1/2019		1,925		2,146,375
Forest Oil Corp.		7.25%		6/15/2019		1,825		1,861,500
Forest Oil Corp.		8.50%		2/15/2014		525		576,188
KCS Energy Services, Inc.		7.125%		4/1/2012		500		502,500
Kerr-McGee Corp.		6.95%		7/1/2024		1,600		1,743,045
Linn Energy LLC/Linn Energy Finance Corp.†		7.75%		2/1/2021		1,100		1,133,000
Newfield Exploration Co.		7.125%		5/15/2018		1,200		1,269,000
Pan American Energy LLC (Argentina)†(b)		7.875%		5/7/2021		775		827,313
QEP Resources, Inc.		6.80%		3/1/2020		400		395,538
QEP Resources, Inc.		6.875%		3/1/2021		675		712,125
Quicksilver Resources, Inc.		8.25%		8/1/2015		1,500		1,563,750
Range Resources Corp.		7.25%		5/1/2018		575		609,500
Range Resources Corp.		8.00%		5/15/2019		1,475		1,613,281
Ras Laffan Liquefied Natural Gas Co., Ltd. III (Qatar)†(b)		5.50%		9/30/2014		650		703,305
Whiting Petroleum Corp.		6.50%		10/1/2018		750		761,250
Total								26,016,132
Environmental 0.27%
Clean Harbors, Inc.		7.625%		8/15/2016		900		960,750
Darling International, Inc.†		8.50%		12/15/2018		500		523,750
Total								1,484,500
Food & Drug Retailers 0.80%
Ingles Markets, Inc.		8.875%		5/15/2017		1,525		1,639,375
Rite Aid Corp.		10.25%		10/15/2019		1,100		1,148,125
Stater Bros Holdings, Inc.†		7.375%		11/15/2018		750		772,500
SUPERVALU, INC.		7.50%		11/15/2014		800		776,000
Total								4,336,000

See Notes to Financial Statements.

16

Schedule of Investments (continued)

December 31, 2010

Investments	Interest Rate		Maturity Date		Principal Amount (000)		Value
Food: Wholesale 1.96%
Bumble Bee Acquisition Corp.†		9.00%		12/15/2017	$	500	$	522,500
Bumble Bee Foods LLC		7.75%		12/15/2015		1,600		1,837,808
Bunge NA Finance LP		5.90%		4/1/2017		325		334,903
Corn Products International, Inc.		4.625%		11/1/2020		525		518,807
Del Monte Corp.		7.50%		10/15/2019		400		468,500
Dole Food Co., Inc.		8.75%		7/15/2013		1,400		1,503,250
General Mills, Inc.		5.20%		3/17/2015		950		1,049,769
H.J. Heinz Co.		5.35%		7/15/2013		525		575,960
Mead Johnson Nutrition Co.		4.90%		11/1/2019		1,400		1,479,458
Pinnacle Foods Finance LLC/ Pinnacle Foods Finance Corp.		8.25%		9/1/2017		500		513,750
Pinnacle Foods Finance LLC/ Pinnacle Foods Finance Corp.		9.25%		4/1/2015		450		470,812
Pinnacle Foods Finance LLC/ Pinnacle Foods Finance Corp.		10.625%		4/1/2017		300		322,500
Viterra, Inc. (Canada)†(b)		5.95%		8/1/2020		1,150		1,099,230
Total								10,697,247
Forestry/Paper 0.87%
Boise Paper Holdings LLC/Boise Finance Co.		9.00%		11/1/2017		750		823,125
Cascades, Inc. (Canada)(b)		7.75%		12/15/2017		350		366,625
Cascades, Inc. (Canada)(b)		7.875%		1/15/2020		250		262,500
Georgia-Pacific LLC†		5.40%		11/1/2020		300		297,163
Georgia-Pacific LLC†		8.25%		5/1/2016		1,600		1,814,000
NewPage Corp.		11.375%		12/31/2014		625		590,625
Sino-Forest Corp. (Canada)†(b)		6.25%		10/21/2017		200		202,750
Weyerhaeuser Co.		7.375%		10/1/2019		375		410,347
Total								4,767,135
Gaming 3.27%
Ameristar Casinos, Inc.		9.25%		6/1/2014		850		913,750
Boyd Gaming Corp.		7.125%		2/1/2016		1,525		1,376,312
Caesars Entertainment Operating Co., Inc.†		12.75%		4/15/2018		1,550		1,565,500
Downstream Development Authority Quapaw Tribe of Oklahoma†		12.00%		10/15/2015		500		495,625
International Game Technology		7.50%		6/15/2019		325		366,423
Isle of Capri Casinos, Inc.		7.00%		3/1/2014		750		738,750
Marina District Finance Co., Inc.†		9.875%		8/15/2018		1,400		1,386,000
MCE Finance Ltd.		10.25%		5/15/2018		650		748,313

See Notes to Financial Statements.

17

Schedule of Investments (continued)

December 31, 2010

Investments	Interest Rate		Maturity Date		Principal Amount (000)		Value
Gaming (continued)
MGM Resorts International		6.75%		4/1/2013	$	1,250	$	1,248,750
MGM Resorts International†		9.00%		3/15/2020		300		331,500
Midwest Gaming Borrower LLC/Midwest Finance Corp.†		11.625%		4/15/2016		500		520,000
Mohegan Tribal Gaming Authority†		11.50%		11/1/2017		1,500		1,391,250
Peninsula Gaming LLC		8.375%		8/15/2015		250		264,063
River Rock Entertainment Authority (The)		9.75%		11/1/2011		975		875,062
Scientific Games International, Inc.		9.25%		6/15/2019		850		881,875
Seminole Indian Tribe of Florida†		7.75%		10/1/2017		1,500		1,556,250
Snoqualmie Entertainment Authority†		9.125%		2/1/2015		1,300		1,241,500
Turning Stone Casino Resort†		9.125%		9/15/2014		200		206,250
Wynn Las Vegas LLC/Capital Corp.		7.875%		11/1/2017		1,600		1,732,000
Total								17,839,173
Gas Distribution 3.17%
Colorado Interstate Gas Co.		6.80%		11/15/2015		829		959,174
El Paso Corp.†		6.50%		9/15/2020		250		252,951
El Paso Corp.		7.00%		6/15/2017		1,475		1,563,965
El Paso Natural Gas Co.		5.95%		4/15/2017		750		808,228
Ferrellgas LP/Ferrellgas Finance Corp.†		6.50%		5/1/2021		675		661,500
Ferrellgas Partners LP		8.625%		6/15/2020		650		702,000
Florida Gas Transmission Co. LLC†		7.90%		5/15/2019		300		363,272
Inergy LP/Inergy Finance Corp.		8.25%		3/1/2016		1,750		1,833,125
Kinder Morgan Finance Co. LLC†		6.00%		1/15/2018		1,000		987,500
MarkWest Energy Partners LP		6.75%		11/1/2020		900		904,500
MarkWest Energy Partners LP		8.75%		4/15/2018		1,100		1,196,250
National Fuel Gas Co.		6.50%		4/15/2018		1,440		1,579,632
NiSource Finance Corp.		6.15%		3/1/2013		400		436,584
Panhandle Eastern Pipeline Co. LP		7.00%		6/15/2018		460		511,213
Panhandle Eastern Pipeline Co. LP		8.125%		6/1/2019		600		692,674
Suburban Propane Partners LP/Suburban Energy Finance Corp.		7.375%		3/15/2020		375		402,188
Tennessee Gas Pipeline Co.		7.50%		4/1/2017		975		1,125,749
Williams Cos., Inc. (The)		7.875%		9/1/2021		741		876,268
Williams Partners LP		5.25%		3/15/2020		550		571,168
Williams Partners LP		7.25%		2/1/2017		750		872,980
Total								17,300,921

See Notes to Financial Statements.

18

Schedule of Investments (continued)

December 31, 2010

Investments	Interest Rate		Maturity Date		Principal Amount (000)		Value
Health Facilities 4.47%
Bausch & Lomb, Inc.		9.875%		11/1/2015	$	2,250	$	2,418,750
Biomet, Inc.		10.00%		10/15/2017		1,000		1,097,500
Capella Healthcare, Inc.†		9.25%		7/1/2017		1,250		1,328,125
Community Health Systems, Inc.		8.875%		7/15/2015		3,000		3,157,500
HCA Holdings, Inc.†		7.75%		5/15/2021		700		701,750
HCA, Inc.		7.875%		2/15/2020		500		537,500
HCA, Inc.		9.125%		11/15/2014		4,500		4,730,625
HCA, Inc.		9.875%		2/15/2017		500		552,500
HealthSouth Corp.		8.125%		2/15/2020		1,350		1,458,000
National Mentor Holdings, Inc.		11.25%		7/1/2014		225		229,500
Omega Healthcare Investors, Inc.†		6.75%		10/15/2022		350		347,813
Omega Healthcare Investors, Inc.		7.50%		2/15/2020		425		448,906
Select Medical Corp.		7.625%		2/1/2015		1,400		1,407,000
Tenet Healthcare Corp.		8.875%		7/1/2019		1,150		1,305,250
UHS Escrow Corp.†		7.00%		10/1/2018		200		206,000
United Surgical Partners International, Inc.		8.875%		5/1/2017		1,500		1,552,500
Vanguard Health Holding Co. II LLC/Vanguard Holding Co. II, Inc.		8.00%		2/1/2018		2,000		2,060,000
VWR Funding, Inc. PIK		10.25%		7/15/2015		792		835,757
Total								24,374,976
Health Services 0.32%
Warner Chilcott Co. LLC/Warner Chilcott Finance LLC (Ireland)†(b)		7.75%		9/15/2018		1,700		1,725,500
Hotels 0.71%
FelCor Lodging LP		10.00%		10/1/2014		375		421,875
Host Hotels & Resorts LP		6.375%		3/15/2015		1,500		1,530,000
Hyatt Hotels Corp.†		5.75%		8/15/2015		500		523,501
Starwood Hotels & Resorts Worldwide, Inc.		6.75%		5/15/2018		1,100		1,210,000
Wyndham Worldwide Corp.		5.75%		2/1/2018		200		203,660
Total								3,889,036
Household & Leisure Products 0.39%
ACCO Brands Corp.		10.625%		3/15/2015		275		310,750
Mattel, Inc.		4.35%		10/1/2020		175		169,914
Whirlpool Corp.		8.60%		5/1/2014		1,425		1,644,367
Total								2,125,031

See Notes to Financial Statements.

19

Schedule of Investments (continued)

December 31, 2010

Investments	Interest Rate			Maturity Date		Principal Amount (000)		Value
Household Durables 0.06%
Armored AutoGroup, Inc.†		9.25%			11/1/2018	$	350	$	349,125
Insurance Brokerage 0.39%
HUB International Holdings, Inc.†		9.00%			12/15/2014		475		483,312
USI Holdings Corp.†		4.161%	#		11/15/2014		1,125		990,000
Willis North America, Inc.		7.00%			9/29/2019		600		626,381
Total									2,099,693
Integrated Energy 0.71%
Alta Wind Holdings LLC†		7.00%			6/30/2035		650		695,354
Coso Geothermal Power Holdings LLC†		7.00%			7/15/2026		975		845,370
Marathon Oil Corp.		6.50%			2/15/2014		1,113		1,253,820
Petrobras International Finance Co. (Brazil)(b)		5.875%			3/1/2018		1,000		1,069,818
Total									3,864,362
Investments & Miscellaneous Financial Services 0.84%
FMR LLC†		5.35%			11/15/2021		800		796,933
KKR Group Finance Co.†		6.375%			9/29/2020		700		698,258
Nuveen Investments, Inc.		10.50%			11/15/2015		3,000		3,082,500
Total									4,577,691
Leisure 1.00%
MU Finance plc (United Kingdom)†(b)		8.375%			2/1/2017		1,150		1,174,437
NCL Corp. Ltd.†		9.50%			11/15/2018		600		621,000
Speedway Motorsports, Inc.		8.75%			6/1/2016		2,000		2,165,000
Universal City Development Partners Ltd.		8.875%			11/15/2015		1,000		1,067,500
Universal City Development Partners Ltd.		10.875%			11/15/2016		400		439,000
Total									5,466,937
Life Insurance 0.05%
MetLife, Inc.		4.75%			2/8/2021		250		255,765
Machinery 1.61%
Altra Holdings, Inc.		8.125%			12/1/2016		1,075		1,144,875
Baldor Electric Co.		8.625%			2/15/2017		4,000		4,500,000
IDEX Corp.		4.50%			12/15/2020		625		613,915
Manitowoc Co., Inc. (The)		8.50%			11/1/2020		600		640,500
Manitowoc Co., Inc. (The)		9.50%			2/15/2018		1,150		1,265,000
Roper Industries, Inc.		6.25%			9/1/2019		550		609,789
Total									8,774,079

See Notes to Financial Statements.

20

Schedule of Investments (continued)

December 31, 2010

Investments	Interest Rate		Maturity Date		Principal Amount (000)		Value
Managed Care 0.33%
Centene Corp.		7.25%		4/1/2014	$	1,350	$	1,397,250
UnitedHealth Group, Inc.		4.875%		4/1/2013		379		405,196
Total								1,802,446
Media: Broadcast 1.34%
Allbritton Communications Co.		8.00%		5/15/2018		775		786,625
Belo Corp.		8.00%		11/15/2016		500		541,250
Citadel Broadcasting Corp.†		7.75%		12/15/2018		750		780,000
Discovery Communications LLC		5.625%		8/15/2019		550		604,643
FoxCo Acquisition Sub LLC†		13.375%		7/15/2016		300		330,000
Gray Television, Inc.		10.50%		6/29/2015		500		506,250
Grupo Televisa SA (Mexico)(b)		6.00%		5/15/2018		200		221,015
LIN Television Corp.		6.50%		5/15/2013		500		503,750
LIN Television Corp.		8.375%		4/15/2018		500		532,500
Salem Communications Corp.		9.625%		12/15/2016		585		623,025
Sinclair Television Group, Inc.†		9.25%		11/1/2017		650		706,875
Univision Communications, Inc.†		8.50%		5/15/2021		500		508,750
Univision Communications, Inc. PIK†		9.75%		3/15/2015		637		671,355
Total								7,316,038
Media: Cable 2.38%
Bresnan Broadband Holdings LLC†		8.00%		12/15/2018		1,250		1,293,750
CCH II LLC/CCH II Capital Corp.		13.50%		11/30/2016		367		439,110
CCO Holdings LLC/CCO Holdings Capital Corp.		8.125%		4/30/2020		1,325		1,401,188
CSC Holdings LLC		8.625%		2/15/2019		1,475		1,674,125
DirecTV Holdings LLC/DirecTV Financing Co., Inc.		6.375%		6/15/2015		1,550		1,610,063
DISH DBS Corp.		7.125%		2/1/2016		1,575		1,634,062
Mediacom Broadband LLC		8.50%		10/15/2015		1,125		1,136,250
Mediacom Communications Corp.		9.125%		8/15/2019		1,975		2,024,375
Virgin Media Finance plc (United Kingdom)(b)		8.375%		10/15/2019		750		823,125
Virgin Media Finance plc (United Kingdom)(b)		9.50%		8/15/2016		800		908,000
Total								12,944,048
Media: Diversified 0.10%
Entravision Communications Corp.†		8.75%		8/1/2017		500		530,000
Media: Services 1.91%
Affinion Group, Inc.		11.50%		10/15/2015		865		903,925

See Notes to Financial Statements.

21

Schedule of Investments (continued)

December 31, 2010

Investments	Interest Rate			Maturity Date		Principal Amount (000)		Value
Media: Services (continued)
Interpublic Group of Cos., Inc. (The)		6.25%			11/15/2014	$	1,610	$	1,744,837
Interpublic Group of Cos., Inc. (The)		10.00%			7/15/2017		875		1,028,125
Lamar Media Corp.		7.875%			4/15/2018		750		800,625
Nielsen Finance LLC/Nielsen Finance Co.†		7.75%			10/15/2018		350		364,000
Nielsen Finance LLC/Nielsen Finance Co. (12.50% after 8/1/2011)~		Zero Coupon			8/1/2016		2,125		2,241,875
WMG Acquisition Corp.		7.375%			4/15/2014		1,000		965,000
WMG Acquisition Corp.		9.50%			6/15/2016		2,200		2,370,500
Total									10,418,887
Medical Products 0.36%
Agilent Technologies, Inc.		5.50%			9/14/2015		500		543,660
Bio-Rad Laboratories, Inc.		8.00%			9/15/2016		1,000		1,090,000
Life Technologies Corp.		6.00%			3/1/2020		300		321,910
Total									1,955,570
Metals/Mining (Excluding Steel) 3.39%
Anglo American Capital plc (United Kingdom)†(b)		9.375%			4/8/2014		300		361,453
Arch Coal, Inc.		7.25%			10/1/2020		200		212,000
Arch Coal, Inc.		8.75%			8/1/2016		850		930,750
Atkore International, Inc.†		9.875%			1/1/2018		1,000		1,045,000
Cliffs Natural Resources, Inc.		5.90%			3/15/2020		1,000		1,055,408
CONSOL Energy, Inc.†		8.25%			4/1/2020		1,250		1,356,250
FMG Resources (August 2006) Pty Ltd. (Australia)†(b)		6.875%			2/1/2018		1,200		1,200,000
FMG Resources (August 2006) Pty Ltd. (Australia)†(b)		7.00%			11/1/2015		1,500		1,545,000
Foundation PA Coal Co.		7.25%			8/1/2014		750		766,875
Freeport-McMoRan Copper & Gold, Inc.		8.375%			4/1/2017		1,525		1,689,101
Gold Fields Orogen Holding BVI Ltd.†		4.875%			10/7/2020		1,000		958,459
Murray Energy Corp.†		10.25%			10/15/2015		1,000		1,055,000
Noranda Aluminum Acquisition Corp. PIK		5.193%	#		5/15/2015		685		617,055
Novelis, Inc.†		8.75%			12/15/2020		650		677,625
Old AII, Inc.(g)		10.00%			12/15/2016		850		2,133
Patriot Coal Corp.		8.25%			4/30/2018		1,350		1,380,375
Peabody Energy Corp.		5.875%			4/15/2016		825		833,250
Peabody Energy Corp.		7.375%			11/1/2016		200		223,000

See Notes to Financial Statements.

22

Schedule of Investments (continued)

December 31, 2010

Investments	Interest Rate		Maturity Date			Principal Amount (000)		Value
Metals/Mining (Excluding Steel) (continued)
Penn Virginia Resource Partners LP/Penn Virginia Resource Finance Corp.		8.25%		4/15/2018		$	1,200	$	1,242,000
Teck Resources Ltd. (Canada)(b)		10.75%		5/15/2019			1,000		1,301,918
Total									18,452,652
Monoline Insurance 0.18%
Fidelity National Financial, Inc.		6.60%		5/15/2017			1,000		999,032
Multi-Line Insurance 0.12%
AXA SA (France)†(b)		6.379%		–	(f)		550		502,563
ZFS Finance (USA) Trust V†		6.50%		5/9/2037			145		142,100
Total									644,663
Oil Field Equipment & Services 0.97%
Cameron International Corp.		6.375%		7/15/2018			475		527,605
Complete Production Services, Inc.		8.00%		12/15/2016			1,025		1,066,000
Dresser-Rand Group, Inc.		7.375%		11/1/2014			854		879,620
Key Energy Services, Inc.		8.375%		12/1/2014			875		927,500
Precision Drilling Corp. (Canada)†(b)		6.625%		11/15/2020			375		382,500
SEACOR Holdings, Inc.		7.375%		10/1/2019			1,000		1,038,925
Trinidad Drilling Ltd. (Canada)†(b)		7.875%		1/15/2019			450		456,750
Total									5,278,900
Oil Refining & Marketing 0.24%
Tesoro Corp.		9.75%		6/1/2019			1,200		1,335,000
Packaging 2.71%
Ardagh Packaging Finance plc (Ireland)†(b)		7.375%		10/15/2017			1,200		1,243,500
Ardagh Packaging Finance plc (Ireland)†(b)		9.125%		10/15/2020			850		888,250
Ball Corp.		6.625%		3/15/2018			750		766,875
Ball Corp.		7.375%		9/1/2019			1,500		1,620,000
Crown Cork & Seal Co., Inc.		7.375%		12/15/2026			1,870		1,865,325
Graham Packaging Co. LP/GPC Capital Corp. I		8.25%		1/1/2017			600		627,000
Graham Packaging Co. LP/GPC Capital Corp. I		8.25%		10/1/2018			825		870,375
Graphic Packaging International, Inc.		9.50%		8/15/2013			737		755,425
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Luxembourg SA†		7.75%		10/15/2016			1,575		1,673,438
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Luxembourg SA†		8.50%		5/15/2018			725		732,250

See Notes to Financial Statements.

23

Schedule of Investments (continued)

December 31, 2010

Investments	Interest Rate		Maturity Date		Principal Amount (000)		Value
Packaging (continued)
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Luxembourg SA†		9.00%		4/15/2019	$	425	$	442,531
Sealed Air Corp.		7.875%		6/15/2017		1,000		1,101,099
Solo Cup Co.		8.50%		2/15/2014		800		724,000
Solo Cup Co.		10.50%		11/1/2013		500		525,000
Vitro SA de CV (Mexico)(b)(g)		9.125%		2/1/2017		1,500		922,500
Total								14,757,568
Pharmaceuticals 0.44%
Axcan Intermediate Holdings, Inc.		12.75%		3/1/2016		825		851,812
Mylan, Inc.†		7.625%		7/15/2017		300		320,625
Mylan, Inc.†		7.875%		7/15/2020		550		595,375
Novartis Securities Investment Ltd.		5.125%		2/10/2019		550		609,337
Total								2,377,149
Printing & Publishing 0.35%
Deluxe Corp.		7.375%		6/1/2015		600		628,500
ProQuest LLC/ProQuest Notes Co.†		9.00%		10/15/2018		1,225		1,267,875
Total								1,896,375
Property & Casualty 0.32%
Liberty Mutual Group, Inc.†		10.75%		6/15/2058		1,425		1,738,500
Real Estate Investment Trusts 1.20%
Developers Diversified Realty Corp.		7.875%		9/1/2020		790		886,215
DuPont Fabros Technology LP		8.50%		12/15/2017		675		725,625
Goodman Funding Pty Ltd. (Australia)†(b)		6.375%		11/12/2020		800		768,695
Health Care REIT, Inc.		6.125%		4/15/2020		1,000		1,054,531
Kilroy Realty LP		5.00%		11/3/2015		1,000		993,802
ProLogis		5.625%		11/15/2016		500		514,510
ProLogis		6.875%		3/15/2020		1,250		1,329,427
Ventas Realty LP/Ventas Capital Corp.		3.125%		11/30/2015		250		241,142
Total								6,513,947
Restaurants 0.90%
DineEquity, Inc.†		9.50%		10/30/2018		1,250		1,331,250
Dunkin’ Finance Corp.†		9.625%		12/1/2018		1,000		1,015,000
McDonald’s Corp.		5.00%		2/1/2019		1,350		1,478,830
Wendy’s/Arby’s Restaurants LLC		10.00%		7/15/2016		1,000		1,090,000
Total								4,915,080

See Notes to Financial Statements.

24

Schedule of Investments (continued)

December 31, 2010

Investments	Interest Rate		Maturity Date		Principal Amount (000)		Value
Software/Services 1.92%
Buccaneer Merger Sub, Inc.†		9.125%		1/15/2019	$	675	$	700,312
Ceridian Corp.		11.25%		11/15/2015		1,000		995,000
Fidelity National Information Services, Inc.†		7.625%		7/15/2017		300		317,250
First Data Corp.†		8.25%		1/15/2021		989		954,385
First Data Corp.		9.875%		9/24/2015		222		212,565
First Data Corp.†		12.625%		1/15/2021		989		949,440
Open Solutions, Inc.†		9.75%		2/1/2015		600		421,500
SERENA Software, Inc.		10.375%		3/15/2016		500		513,750
SunGard Data Systems, Inc.†		7.375%		11/15/2018		1,600		1,616,000
SunGard Data Systems, Inc.†		7.625%		11/15/2020		400		407,000
SunGard Data Systems, Inc.		10.25%		8/15/2015		2,500		2,634,375
Vangent, Inc.		9.625%		2/15/2015		800		728,000
Total								10,449,577
Specialty Retail 1.47%
Brookstone Co., Inc.†		13.00%		10/15/2014		528		489,720
Limited Brands, Inc.		7.00%		5/1/2020		1,000		1,060,000
Limited Brands, Inc.		7.60%		7/15/2037		400		394,000
Limited Brands, Inc.		8.50%		6/15/2019		650		745,875
PETCO Animal Supplies, Inc.†		9.25%		12/1/2018		425		449,969
QVC, Inc.†		7.125%		4/15/2017		1,000		1,052,500
QVC, Inc.†		7.375%		10/15/2020		1,200		1,263,000
Toys “R” Us Property Co. I LLC		10.75%		7/15/2017		1,150		1,316,750
Toys “R” Us Property Co. II LLC		8.50%		12/1/2017		1,150		1,242,000
Total								8,013,814
Steel Producers/Products 0.78%
AK Steel Corp.		7.625%		5/15/2020		300		302,250
Algoma Acquisition Corp. (Canada)†(b)		9.875%		6/15/2015		1,075		972,875
Allegheny Ludlum Corp.		6.95%		12/15/2025		575		600,870
Allegheny Technologies, Inc.		9.375%		6/1/2019		800		936,000
Essar Steel Algoma, Inc. (Canada)†(b)		9.375%		3/15/2015		650		657,313
Steel Dynamics, Inc.†		7.625%		3/15/2020		750		806,250
Total								4,275,558
Support: Services 2.33%
Avis Budget Car Rental		9.625%		3/15/2018		1,000		1,082,500
Brambles USA, Inc.†		5.35%		4/1/2020		900		914,676

See Notes to Financial Statements.

25

Schedule of Investments (continued)

December 31, 2010

Investments	Interest Rate		Maturity Date		Principal Amount (000)		Value
Support: Services (continued)
Corrections Corp. of America		7.75%		6/1/2017	$	1,900	$	2,025,875
Diversey, Inc.		8.25%		11/15/2019		750		817,500
Expedia, Inc.		8.50%		7/1/2016		725		797,500
FTI Consulting, Inc.†		6.75%		10/1/2020		500		498,750
FTI Consulting, Inc.		7.75%		10/1/2016		750		776,250
Geo Group, Inc. (The)		7.75%		10/15/2017		725		764,875
Hertz Corp. (The)†		7.50%		10/15/2018		2,000		2,085,000
PHH Corp.†		9.25%		3/1/2016		350		371,000
Travelport LLC		9.875%		9/1/2014		1,250		1,223,438
Travelport LLC/Travelport, Inc.		9.00%		3/1/2016		1,350		1,314,562
Total								12,671,926
Telecommunications: Integrated/Services 2.60%
CenturyLink, Inc.		6.15%		9/15/2019		1,200		1,205,638
Equinix, Inc.		8.125%		3/1/2018		1,233		1,294,650
Hughes Network Systems LLC		9.50%		4/15/2014		1,100		1,139,875
Hughes Network Systems LLC		9.50%		4/15/2014		1,440		1,492,200
Intelsat Luxembourg SA (Luxembourg)(b)		11.25%		2/4/2017		3,000		3,285,000
MasTec, Inc.		7.625%		2/1/2017		750		750,000
Qtel International Finance Ltd. (Qatar)†(b)		4.75%		2/16/2021		375		359,190
Qwest Communications International, Inc.		8.00%		10/1/2015		950		1,026,000
Telefonica Emisiones SAU (Spain)(b)		7.045%		6/20/2036		500		513,114
Telemar Norte Leste SA (Brazil)†(b)		5.50%		10/23/2020		634		613,395
Windstream Corp.		7.00%		3/15/2019		2,500		2,475,000
Total								14,154,062
Telecommunications: Wireless 4.80%
CC Holdings GS V LLC/ Crown Castle GS III Corp.†		7.75%		5/1/2017		2,000		2,195,000
Clearwire Communications LLC/Clearwire Finance, Inc.†		12.00%		12/1/2017		250		259,375
Digicel Group Ltd. (Jamaica)†(b)		10.50%		4/15/2018		1,000		1,105,000
DigitalGlobe, Inc.		10.50%		5/1/2014		2,600		2,980,250
GeoEye, Inc.		8.625%		10/1/2016		600		630,000
GeoEye, Inc.		9.625%		10/1/2015		1,500		1,702,500
Inmarsat Finance plc (United Kingdom)†(b)		7.375%		12/1/2017		1,000		1,055,000
IPCS, Inc. PIK		3.537%		5/1/2014		518		499,721
MetroPCS Wireless, Inc.		6.625%		11/15/2020		1,900		1,814,500
MetroPCS Wireless, Inc.		7.875%		9/1/2018		1,250		1,303,125
NII Capital Corp.		8.875%		12/15/2019		925		1,001,313
NII Capital Corp.		10.00%		8/15/2016		900		1,001,250

See Notes to Financial Statements.

26

Schedule of Investments (continued)

December 31, 2010

Investments	Interest Rate		Maturity Date		Principal Amount (000)		Value
Telecommunications: Wireless (continued)
SBA Telecommunications, Inc.		8.25%		8/15/2019	$	500	$	548,750
Sprint Capital Corp.		6.90%		5/1/2019		3,500		3,473,750
Sprint Nextel Corp.		8.375%		8/15/2017		1,725		1,858,687
Telemovil Finance Co., Ltd. (El Salvador)†(b)		8.00%		10/1/2017		750		776,250
ViaSat, Inc.		8.875%		9/15/2016		1,000		1,070,000
Wind Acquisition Finance SA (Italy)†(b)		7.25%		2/15/2018		1,000		1,020,000
Wind Acquisition Finance SA (Italy)†(b)		11.75%		7/15/2017		1,650		1,868,625
Total								26,163,096
Theaters & Entertainment 0.45%
Cinemark USA, Inc.		8.625%		6/15/2019		1,100		1,196,250
Live Nation Entertainment, Inc.†		8.125%		5/15/2018		1,250		1,271,875
Total								2,468,125
Transportation (Excluding Air/Rail) 0.21%
Asciano Finance Ltd. (Australia)†(b)		4.625%		9/23/2020		625		580,735
Commercial Barge Line Co.		12.50%		7/15/2017		475		551,000
Total								1,131,735
Total High Yield Corporate Bonds (cost $417,634,486)								441,081,832
MUNICIPAL BONDS 0.21%
Other Revenue 0.15%
Metro Govt of Nashville & Davidson Cnty TN Convtn Ctr Auth Build America Bds Ser B		6.731%		7/1/2043		825		813,219
Transportation 0.06%
Chicago IL O’Hare Intl Arpt Build America Bds Ser B		6.395%		1/1/2040		325		307,037
Total Municipal Bonds (cost $1,166,034)								1,120,256
					Shares (000)
NON-CONVERTIBLE PREFERRED STOCKS 0.13%
Agency/Government Related 0.00%
Fannie Mae*		Zero Coupon				21		11,480
Banking 0.13%
Citigroup Capital XIII*		7.875%				9		231,426

See Notes to Financial Statements.

27

Schedule of Investments (continued)

December 31, 2010

Investments	Interest Rate				Shares (000)			Value
Banking (continued)
US Bancorp*		7.189%				–	(d)	$	475,725
Total									707,151
Total Non-Convertible Preferred Stocks (cost $1,178,804)									718,631
	Exercise Price		Expiration Date
WARRANTS 0.02%
Auto Parts & Equipment 0.01%
Cooper-Standard Holdings, Inc.*	$	27.33		11/27/2017		1			31,252
Cooper-Standard Holdings, Inc.*(a)		27.33		11/27/2017		1			25,088
Total									56,340
Media: Cable 0.01%
Charter Communications, Inc.*		46.86		11/30/2014		3			27,324
Total Warrants (cost $36,246)									83,664
Total Long-Term Investments (cost $500,790,854)									535,526,899
					Principal Amount (000)
SHORT-TERM INVESTMENT 0.90%
Repurchase Agreement
Repurchase Agreement dated 12/31/2010, 0.04% due 1/3/2011 with Fixed Income Clearing Corp. collateralized by $4,635,000 of Federal Home Loan Bank at 4.625% due 8/15/2012; value: $4,994,213; proceeds: $4,895,005 (cost $4,894,989)					$	4,895			4,894,989
Total Investments in Securities 99.16% (cost $505,685,843)									540,421,888
Cash and Other Assets in Excess of Liabilities(h) 0.84%									4,573,051
Net Assets 100.00%								$	544,994,939

See Notes to Financial Statements.

28

Schedule of Investments (concluded)

December 31, 2010

PIK	Payment-in-kind.
EUR	euro.
*	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 in effect at December 31, 2010.
(a)	Restricted securities of Cooper Standard Holdings, Inc. acquired through private placement during the fiscal year ended December 31, 2010 are as follows:

Investment Type	Acquisition Date	Acquired Shares	Cost on Acquisition Date	Fair value per share at December 31, 2010
Common Stock	May 24, 2010	19,252	$424,001	$45.00
Convertible Preferred Stock	May 24, 2010	658	65,800	185.00
Convertible Preferred Stock	July 19, 2010	7	700	185.00
Warrant	May 27, 2010	1,115	–	22.50

(b)	Foreign security traded in U.S. dollars.
(c)	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, 2010 is $38.94.
(d)	Amount is less than 1,000 shares.
(e)	Investment in non-U.S. dollar denominated securities.
(f)	Security is perpetual in nature and has no stated maturity.
(g)	Defaulted security.
(h)	Cash and Other Assets in Excess of Liabilities include net unrealized appreciation on open futures contracts, as follows:

Open Futures Contracts at December 31, 2010:

Type	Expiration	Contracts		Position	Market Value		Unrealized Appreciation
U.S. 10-Year Treasury Note	March 2011		50	Short	$	(6,021,875)	$	179,146

See Notes to Financial Statements.

29

Statement of Assets and Liabilities

December 31, 2010

ASSETS:
Investments in securities, at value (cost $505,685,843)	$	540,421,888
Deposits with broker for futures collateral		80,000
Cash		19,969
Receivables:
Interest and dividends		8,163,670
Investment securities sold		314,418
Capital shares sold		274,799
From advisor (See Note 3)		23,877
Prepaid expenses and other assets		6,001
Total assets		549,304,622
LIABILITIES:
Payables:
Investment securities purchased		3,421,177
Management fee		228,445
Capital shares reacquired		137,581
Directors’ fees		41,487
Variation margin		22,656
Fund administration		18,276
Accrued expenses and other liabilities		440,061
Total liabilities		4,309,683
NET ASSETS	$	544,994,939
COMPOSITION OF NET ASSETS:
Paid-in capital	$	520,333,992
Distributions in excess of net investment income		(1,821,103	)
Accumulated net realized loss on investments, futures contracts and foreign currency related transactions		(8,433,174	)
Net unrealized appreciation on investments, futures contracts and translation of assets and liabilities denominated in foreign currencies		34,915,224
Net Assets	$	544,994,939
Outstanding shares (200 million shares of common stock authorized, $.001 par value)		45,682,599
Net asset value, offering and redemption price per share (Net assets divided by outstanding shares)		$11.93

See Notes to Financial Statements.

30

Statement of Operations

For the Year Ended December 31, 2010

Investment income:
Dividends (net of foreign withholding taxes of $368)	$	983,352
Interest and other		34,070,803
Total investment income		35,054,155
Expenses:
Management fee		2,494,464
Shareholder servicing		1,771,549
Fund administration		199,557
Reports to shareholders		134,848
Professional		56,671
Directors’ fees		19,991
Custody		15,169
Other		11,474
Gross expenses		4,703,723
Expense reductions (See Note 7)		(697	)
Management fee waived (See Note 3)		(212,990	)
Net expenses		4,490,036
Net investment income		30,564,119
Net realized and unrealized gain:
Net realized gain on investments, futures contracts and foreign currency related transactions		11,245,108
Net change in unrealized appreciation/depreciation on investments, futures contracts and translation of assets and liabilities denominated in foreign currencies		16,464,593
Net realized and unrealized gain		27,709,701
Net Increase in Net Assets Resulting From Operations	$	58,273,820

See Notes to Financial Statements.

31

Statements of Changes in Net Assets

INCREASE IN NET ASSETS	For the Year Ended December 31, 2010			For the Year Ended December 31, 2009
Operations:
Net investment income	$	30,564,119		$	25,580,022
Net realized gain (loss) on investments, futures contracts and foreign currency related transactions		11,245,108			(9,485,075	)
Net change in unrealized appreciation/depreciation on investments, futures contracts and translation of assets and liabilities denominated in foreign currencies		16,464,593			88,578,369
Net increase in net assets resulting from operations		58,273,820			104,673,316
Distributions to shareholders from:
Net investment income		(31,666,310	)		(26,349,492	)
Capital share transactions (See Note 10):
Proceeds from sales of shares		143,567,251			126,606,135
Reinvestment of distributions		31,666,310			26,349,492
Cost of shares reacquired		(110,434,732	)		(56,547,115	)
Net increase in net assets resulting from capital share transactions		64,798,829			96,408,512
Net increase in net assets		91,406,339			174,732,336
NET ASSETS:
Beginning of year	$	453,588,600		$	278,856,264
End of year	$	544,994,939		$	453,588,600
Distributions in excess of net investment income	$	(1,821,103	)	$	(1,631,698	)

See Notes to Financial Statements.

32

Financial Highlights

	Year Ended 12/31
	2010			2009			2008			2007			2006
Per Share Operating Performance
Net asset value, beginning of year		$11.28			$  8.91			$11.77			$11.84			$11.49
Investment operations:
Net investment income(a)		.73			.75			.70			.70			.63
Net realized and unrealized gain (loss)		.66			2.32			(2.79	)		.03			.44
Total from investment operations		1.39			3.07			(2.09	)		.73			1.07
Distributions to shareholders from:
Net investment income		(.74	)		(.70	)		(.74	)		(.76	)		(.72	)
Net realized gain		–			–			(.03	)		(.04	)		–
Total distributions		(.74	)		(.70	)		(.77	)		(.80	)		(.72	)
Net asset value, end of year		$11.93			$11.28			$  8.91			$11.77			$11.84
Total Return(b)		12.31	%		34.31	%		(17.53	)%		6.19	%		9.33	%
Ratios to Average Net Assets:
Expenses, excluding expense reductions, including management fee waived and expenses reimbursed		.90	%		.86	%		.87	%		.90	%		.91	%
Expenses, including expense reductions, management fee waived and expenses reimbursed		.90	%		.86	%		.87	%		.90	%		.90	%
Expenses, excluding expense reductions, management fee waived and expenses reimbursed		.94	%		.96	%		.94	%		.95	%		.96	%
Net investment income		6.12	%		7.11	%		6.32	%		5.67	%		5.31	%
Supplemental Data:
Net assets, end of year (000)		$544,995			$453,589			$278,856			$315,625			$257,180
Portfolio turnover rate		39.29	%		51.76	%		34.22	%		34.04	%		37.88	%

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

^(b) Total return does not consider the effects of sales charges or other expenses imposed by an insurance company and assumes the reinvestment of all distributions.

See Notes to Financial Statements.

33

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 and was incorporated under Maryland law in 1989. The Company consists of twelve 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 has 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 the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

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. Exchange-traded options and futures contracts are valued at the last sale price in the market where they are principally traded. If no sale has occurred, the mean between the most recently quoted bid and asked prices is used. 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 fair value.

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

(c) Investment Income–Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis as earned. Discounts are accreted and premiums are amortized using the effective interest method and are included in Interest income and other in the

34

Notes to Financial Statements (continued)

Statement of Operations. 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, 2007 through December 31, 2010. 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, futures contracts 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 gain on investments, futures contracts 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) Futures Contracts–The Fund may purchase and sell futures contracts to enhance returns, to attempt to hedge some of its investment risk, or as a substitute position for holding the underlying asset on which the instrument is based. At the time of entering into a futures transaction, an investor is required to deposit and maintain a specified amount of cash or eligible securities called “initial margin.” Subsequent payments made or received by a Fund called “variation margin” are made on a daily basis as the market price of the futures contract fluctuates. The Fund will record an unrealized gain (loss) based on the amount of variation margin. When a contract is closed, a realized gain (loss) is recorded equal to the difference between the opening and closing value of the contract.

(h) 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

35

Notes to Financial Statements (continued)

transaction and reflect the liability for the purchase and value of the security in determining its NAV. 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.

(i) 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, the Fund may incur a loss upon disposition of the securities.

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

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

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

• Level 3 – significant unobservable inputs (including 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.

36

Notes to Financial Statements (continued)

The following is a summary of the inputs used as of December 31, 2010 in valuing the Fund’s investments carried at value:

Investment Type*	Level 1		Level 2		Level 3		Total
Common Stocks	$	4,935,547	$	866,340	$	–	$	5,801,887
Convertible Bonds		–		63,268,713		–		63,268,713
Convertible Preferred Stocks		15,042,599		5,215,244		–		20,257,843
Foreign Bond		–		553,228		–		553,228
Government Sponsored Enterprises Bond		–		2,640,845		–		2,640,845
High Yield Corporate Bonds		–		441,081,832		–		441,081,832
Municipal Bonds		–		1,120,256		–		1,120,256
Non-Convertible Preferred Stocks		242,906		475,725		–		718,631
Warrants		27,324		56,340		–		83,664
Repurchase Agreement		–		4,894,989		–		4,894,989
Total	$	20,248,376	$	520,173,512	$	–	$	540,421,888
Other Financial Instruments
Futures Contracts
Assets	$	179,146	$	–	$	–	$	179,146
Liabilities		–		–		–		–
Total	$	179,146	$	–	$	–	$	179,146

* See Schedule of Investments for values in each industry.

(k) Disclosures about Derivative Instruments and Hedging Activities–The Fund entered into U.S. Treasury futures contracts during the fiscal year ended December 31, 2010 (as described in note 2(g)) to hedge against changes in interest rates. The Fund bears the risk of interest rates moving unexpectedly, in which case the Fund may not achieve the anticipated benefits of the futures contracts and realize a loss. There is minimal counterparty credit risk to the Fund since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees futures against default.

As of December 31, 2010, the Fund had a futures interest rate contract with a cumulative unrealized appreciation of $179,146, which is included in the Schedule of Investments. Only the current day’s variation margin is included in the Statement of Assets and Liabilities. Amounts of $(529,120) and $179,146 are included in the Statement of Operations related to futures contracts under the captions Net realized gain on investments, futures contracts and foreign currency related transactions and Net change in unrealized appreciation/depreciation on investments, futures contracts and translation of assets and liabilities denominated in foreign currencies, respectively. The average number of futures contracts throughout the fiscal year was 38.

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.

37

Notes to Financial Statements (continued)

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

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

For the fiscal year ended December 31, 2010, the effective management fee, net of waivers, was at an annualized rate of .46% of the Fund’s average daily net assets.

In addition, Lord Abbett provides certain administrative services to the Fund pursuant to an Administrative Services Agreement in return for a fee at an annual rate of .04% of the Fund’s average daily net assets.

For the period January 1, 2010 through April 30, 2010, Lord Abbett voluntarily agreed to waive all or a portion of its management fee, and if necessary, reimburse the Fund’s other expenses to the extent necessary so that total net annual operating expenses did not exceed an annualized rate of .90%.

For the period May 1, 2010 through April 30, 2011, Lord Abbett has contractually agreed to continue such waivers under the same terms. This agreement may be terminated only upon the approval of the Fund’s Board of Directors.

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 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, 2010, the Fund incurred expenses of $1,746,125 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 semi-annually. Taxable net realized gains from investment transactions, reduced by allowable capital loss carryforwards, if any, are declared and distributed to shareholders at least annually. The capital loss carryforward amount, if any, is available to offset future net capital gains. Dividends and distributions to shareholders are recorded on the ex-dividend date. The amounts of dividends and distributions from net investment income and net realized capital gains are determined in accordance with federal income tax regulations, which may differ from accounting principles generally accepted in the United States of America. These book/tax differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the components of net assets based on their federal tax basis treatment; temporary differences do not require reclassification. Dividends and distributions, which exceed earnings and profits for tax purposes, are reported as a tax return of capital.

38

Notes to Financial Statements (continued)

The tax character of distributions paid during the fiscal years ended December 31, 2010 and 2009 was as follows:

	Year Ended 12/31/2010		Year Ended 12/31/2009
Distributions paid from:
Ordinary income	$	31,666,310	$	26,349,492
Total distributions paid	$	31,666,310	$	26,349,492

As of December 31, 2010, the components of accumulated gains on a tax-basis were as follows:

Undistributed ordinary income - net	$	167,280
Total undistributed earnings	$	167,280
Capital loss carryforward*		(7,357,195	)
Temporary differences		(41,487	)
Unrealized gains – net		31,892,349
Total accumulated gains – net	$	24,660,947

* As of December 31, 2010, the capital loss carryforward, along with the related expiration date, was as follows:

2017		Total
$	7,357,195	$	7,357,195

As of December 31, 2010, the aggregate unrealized security gains and losses based on cost for U.S. federal income tax purposes were as follows:

Tax cost	$	508,529,572
Gross unrealized gain		40,417,520
Gross unrealized loss		(8,525,204	)
Net unrealized security gain	$	31,892,316

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

Permanent items identified during the fiscal year ended December 31, 2010 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
$912,786	$	(912,786	)

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

On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the “Modernization Act”) was signed by the President. The Modernization Act includes numerous provisions that generally become effective for taxable years beginning after the date of enactment. Management is currently assessing the impact of the Modernization Act as it relates to the Fund.

39

Notes to Financial Statements (continued)

5.    PORTFOLIO SECURITIES TRANSACTIONS

Purchases and sales of investment securities (excluding short-term investments) for the fiscal year ended December 31, 2010 were as follows:

U.S. Government Purchases*	Non-U.S. Government Purchases		U.S. Government Sales*		Non-U.S. Government Sales
$                    -	$	264,571,854	$	2,638,543	$	186,773,327

* 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.

7.    EXPENSE REDUCTIONS

The Company has entered into an arrangement with its transfer agent and custodian, whereby credits realized as a result of uninvested cash balances are used to reduce a portion of 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.

40

Notes to Financial Statements (concluded)

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.

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.

Due to the Fund’s exposure to foreign companies (and ADRs), the Fund may experience increased market, liquidity, currency, political, information and other risks.

The Fund is subject to the risks associated with derivatives, which may be different from and greater than the risks associated with directly investing in securities. Derivatives may be subject to risks such as liquidity risk, leveraging risk, interest rate risk, market risk, and credit risk. Illiquid securities may lower the Fund’s returns since the Fund may be unable to sell these securities at their desired time or price. Derivatives also may involve the risk of mispricing or improper valuation and the risk that changes in the value of the derivative may not correlate perfectly with the value of the underlying asset, rate or index. Whether the Fund’s use of derivatives is successful will depend on, among other things, the Fund’s ability to correctly forecast market movements and other factors. If the Fund incorrectly forecasts these and other factors, the Fund’s performance could suffer.

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, 2010			Year Ended December 31, 2009
Shares sold		12,081,085			12,136,685
Reinvestment of distributions		2,665,332			2,340,097
Shares reacquired		(9,278,377	)		(5,560,333	)
Increase		5,468,040			8,916,449

41

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 of Bond-Debenture Portfolio, one of the portfolios constituting the Lord Abbett Series Fund, Inc. (the “Company”), including the schedule of investments, as of December 31, 2010, 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, 2010, 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 Bond-Debenture Portfolio of the Lord Abbett Series Fund, Inc. as of December 31, 2010, 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 15, 2011

42

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 the investment adviser provides, and annually considers whether to renew the contract with the adviser. Generally, each Director holds office until his/her successor is elected and qualified or until his/her earlier resignation or removal, as provided in the Company’s organizational documents.

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

Interested Directors

The following Directors are associated with Lord Abbett and are “interested persons” of the Company as defined in the Act. Mr. Dow and Ms. Foster are officers and directors or trustees of each of the 13 Lord Abbett-sponsored funds, which consist of 53 portfolios or series.

Name, Address and Year of Birth	Current Position and Length of Service with the Company	Principal Occupation and Other Directorships During Past Five Years
Robert S. Dow Lord, Abbett & Co. LLC 90 Hudson Street Jersey City, NJ 07302 (1945)	Director since 1995 and Chairman since 1996	Principal Occupation: Senior Partner of Lord Abbett (since 2007) and was formerly Managing Partner (1996 - 2007) and Chief Investment Officer (1995 -2007), joined Lord Abbett in 1972. Other Directorships: None.
Daria L. Foster Lord, Abbett & Co. LLC 90 Hudson Street Jersey City, NJ 07302 (1954)	Director and President since 2006	Principal Occupation: Managing Partner of Lord Abbett (since 2007), and was formerly Director of Marketing and Client Service, joined Lord Abbett in 1990. Other Directorships: None.

Independent Directors

The following Independent Directors also are directors or trustees of each of the 13 Lord Abbett-sponsored funds, which consist of 53 portfolios or series.

Name, Address and Year of Birth	Current Position and Length of Service with the Company	Principal Occupation and Other Directorships During Past Five Years
E. Thayer Bigelow Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1941)	Director since 1994	Principal Occupation: Managing General Partner, Bigelow Media, LLC (since 2000); Senior Adviser, Time Warner Inc. (1998 - 2000). Other Directorships: Currently serves as director of Crane Co. (since 1984) and Huttig Building Products Inc. (since 1998). Previously served as a director of R.H. Donnelley Inc. (2009 - 2010) and Adelphia Communications Inc. (2003 - 2007).

43

Basic Information About Management (continued)

Name, Address and Year of Birth	Current Position and Length of Service with the Company	Principal Occupation and Other Directorships During Past Five Years
Robert B. Calhoun, Jr. Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1942)	Director since 1998	Principal Occupation: Senior Advisor of Monitor Clipper Partners, a private equity investment fund (since 1997); President of Clipper Asset Management Corp. (1991 - 2009). Other Directorships: Previously served as a director of Avondale, Inc. (1991 - 2005) and Interstate Bakeries Corp. (1991 - 2008).
Evelyn E. Guernsey Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1955)	Director since 2011	Principal Occupation: CEO, Americas of J.P. Morgan Asset Management (2004 - 2010). Other Directorships: None.
Julie A. Hill Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1946)	Director since 2004	Principal Occupation: Owner and CEO of The Hill Company, a business consulting firm (since 1998). Other Directorships: Currently serves as director of WellPoint, Inc., a health benefits company (since 1994). Previously served as a director of Resources Connection, Inc., a consulting firm (2004 - 2007).
Franklin W. Hobbs Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1947)	Director since 2001	Principal Occupation: Advisor of One Equity Partners, a private equity firm (since 2004). Other Directorships: Currently serves as a director and Chairman of the Board of Ally Financial 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	Principal Occupation: Chairman of Spencer Stuart (U.S.), an executive search consulting firm (since 1996). Other Directorships: Currently serves as director of Ace, Ltd. (since 1997). Previously served as a director of Hewitt Associates, Inc. (2004 - 2010).
James L.L. Tullis Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1947)	Director since 2006	Principal Occupation: CEO of Tullis-Dickerson and Co. Inc., a venture capital management firm (since 1990). Other Directorships: Currently serves as director of Crane Co. (since 1998). Previously served as a director of Viacell Inc. (2003 - 2007).

44

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 also may be officers of the other Lord Abbett-sponsored funds and maintain offices at 90 Hudson Street, Jersey City, NJ 07302. Unless otherwise indicated, the position(s) and title(s) listed under the “Principal Occupation” column indicate each officer’s position(s) and title(s) with Lord Abbett.

Name and Year of Birth	Current Position with the 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 of Lord Abbett (since 2007), and was formerly Managing Partner (1996 - 2007) and Chief Investment Officer (1995 - 2007), joined Lord Abbett in 1972.
Daria L. Foster (1954)	President	Elected in 2006	Managing Partner of Lord Abbett (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.
Robert A. Lee (1969)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 1997.
Vincent J. McBride (1964)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 2003.
Andrew H. O’Brien (1973)	Executive Vice President	Elected in 2010	Partner and Portfolio Manager, joined Lord Abbett in 1998.
F. Thomas O’Halloran, III (1955)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 2001.
Harold E. Sharon (1960)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 2003.

45

Basic Information About Management (continued)

Name and Year of Birth	Current Position with the Company	Length of Service of Current Position	Principal Occupation During Past Five Years
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.
A. Edward Allinson (1961)	Vice President	Elected in 2011	Portfolio Manager, joined Lord Abbett in 2005.
Sean J. Aurigemma (1969)	Vice President	Elected in 2010	Portfolio Manager, joined Lord Abbett in 2007 and was formerly a Managing Director and Portfolio Manager at Morgan Stanley (1999 - 2007).
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.
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	Partner and Director, joined Lord Abbett in 2001.

46

Basic Information About Management (continued)

Name and Year of Birth	Current Position with the Company	Length of Service of Current Position	Principal Occupation During Past Five Years
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).
Thomas B. Maher (1967)	Vice President	Elected in 2010	Partner and Portfolio Manager, joined Lord Abbett in 2003.
Justin C. Maurer (1969)	Vice President	Elected in 2010	Partner and Portfolio Manager, joined Lord Abbett in 2001.
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	Partner and Senior Deputy General Counsel, joined Lord Abbett in 2007 and was formerly an Executive Vice President and the General Counsel at Cohen & Steers Capital Management, Inc. (1999 - 2007).
Francis T. Timons (1969)	Vice President	Elected in 2010	Portfolio Manager, joined Lord Abbett in 2007 and was formerly a Research Analyst at Robert W. Baird & Co. (2004 - 2007).

47

Basic Information About Management (concluded)

Name and Year of Birth	Current Position with the Company	Length of Service of Current Position	Principal Occupation During Past Five Years
Arthur K. Weise (1970)	Vice President	Elected in 2010	Portfolio Manager, joined Lord Abbett in 2007 and was formerly a Managing Director, Portfolio Manager and Analyst at Bank of New York Institutional Asset Management (2005 - 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.

48

Approval of Advisory Contract

At meetings held on December 15 and 16, 2010, 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, including information about the investment performance of the Fund compared to the performance of its benchmark, 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 the results of the examination of the portfolio management team by members of the Contract Committee during the year, which included a meeting with the portfolio management team. Additionally, the Board took into consideration its familiarity with Lord Abbett gained through its previous meetings and discussions during the course of the year.

The materials received by the Board included, but were not limited to: (1) information provided by Lipper Inc. (“Lipper”) regarding the investment performance of the Fund compared to the investment performance of one or more groups of funds with substantially similar investment objectives, including a group of funds within the same investment classification/objective (each group a “performance universe”) and to the investment performance of an appropriate fund index; (2) information on the expense ratios, effective management fee rates, and other expense components for the Fund and similar funds (the “peer group”); (3) information provided by Lord Abbett on the projected expense ratios, management fee rates, and other expense components for the Fund; (4) sales and redemption information for the Fund; (5) information regarding Lord Abbett’s financial condition;(6) an analysis of the relative profitability of the management agreement to Lord Abbett; (7) information provided by Lord Abbett regarding the investment management fees Lord Abbett receives from its other advisory clients maintaining accounts with a similar investment strategy as the Fund; (8) information regarding the distribution arrangements of the Fund; and (9) 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 previously had 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 observed that the Fund’s investment performance was in the fourth quintile of its performance universe for the nine-month period, the fifth quintile for the one-year period, and the second quintile for the three-year and five-year periods. The Board also observed that the investment performance of the Fund was lower than that of the Lipper Variable Underlying Funds High Current Yield Index for the nine-month and one-year periods and higher than that of the Index for the three-year and five-year periods. The Board also noted that the Fund’s investment objective, strategy, and investment team were identical to those

49

of 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.

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 observed that for the fiscal year ended December 31, 2009 the contractual management and administrative services fees were approximately nine basis points below the median of the peer group and the actual management and administrative services fees were approximately twenty basis points below the median of the peer group. The Board observed that for the fiscal year ended December 31, 2009 the total expense ratio of the Fund was approximately twelve basis points below the median of the peer group. The Board noted that effective May 1, 2010 it and Lord Abbett had entered into an expense limitation agreement that had the effect of limiting the total expense ratio to 0.90% of average daily net assets, and that Lord Abbett proposed to renew the agreement through April 30, 2012. The Board considered how that expense ratio would relate to the expense ratios 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 increased in its 2010 fiscal year. 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

50

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.

51

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

2.89% of the ordinary income distributions paid by the Fund during the year is qualified dividend income.

For corporate shareholders, 2.39% of ordinary income distributions is qualified for the dividends received deduction.

52

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-2-1210

(02/11)

2010

LORD ABBETT

ANNUAL

REPORT    

Lord Abbett

Series Fund—Capital Structure Portfolio*

For the fiscal year ended December 31, 2010

* Formerly known as America’s Value Portfolio

Lord Abbett Series Fund — Capital Structure Portfolio (formerly America’s Value Portfolio)

Annual Report

For the fiscal year ended December 31, 2010

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 performance of the Lord Abbett Series Fund – Capital Structure Portfolio for the fiscal year ended December 31, 2010. 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

For the fiscal year ended December 31, 2010, the Fund returned 14.77%, reflecting performance at the net asset value (NAV) of Class VC shares, with all distributions reinvested, compared to its benchmark, S&P 500^® Index¹, which returned 15.06% over the same period.

Equity markets seesawed throughout much of the year, before trending upward in the final months as the economic recovery strengthened and the sovereign debt crisis in Europe was addressed. Government support also contributed to the positive performance of the equity markets. In addition, credit markets benefited this year from improving fundamentals and investors’ continued reach for yield. With historically low yields on assets deemed to be free of credit risk, demand increased for securities with higher yields and, therefore, higher levels of credit risk.

1

Within the equity portion, an area that lagged was the financials industry, which we are modestly underweight. Also detracting from Fund performance within the equity portion were the consumer staples and energy industries. The portfolio holds certain consumer staples names that did not perform as well compared to the broader market, but we believe that they eventually will benefit from improving fundamentals and global growth opportunities. Stock selection added to Fund performance, especially in the industrials and health care industries. Stock selection within the information technology and telecommunications services sectors also added to Fund performance.

Within the fixed income portion, the portfolio’s allocation to higher quality corporates detracted from Fund performance, as more credit sensitive segments of the market outpaced other fixed income returns during the year. The portfolio’s concentration in corporate bonds (versus Treasuries) added to Fund performance. Corporate spreads tightened as credit fundamentals improved and demand increased for higher-yielding securities, providing superior returns versus more traditional fixed-income securities.

The portfolio increased its allocation to convertible securities throughout the year, adding to Fund performance, as the convertible market (as represented by the BofA Merrill Lynch All Convertibles All Qualities Index²) outperformed the benchmark S&P 500 Index. Convertible securities are a unique asset class that provides an income stream through yield while also having the potential to participate in equity market upside.

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 BofA Merrill Lynch All Convertibles All Qualities Index contains issues that have a greater than $50 million aggregate market value. The issues are U.S. dollar-denominated, sold into the U.S. market, and publicly traded in the United States.

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

Important Performance and Other Information Performance data quoted in the following pages reflect past performance and are no guarantee of future results. Current performance may be higher or lower than the performance quoted. The investment return and principal value of an investment in 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, expense waivers and reimbursements were in place. Without such expense waivers and reimbursements, the Fund’s returns would have been lower.

2

The views of the Fund’s management and the portfolio holdings described above are as of December 31, 2010; 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, 2010

	1 Year		5 Years		Life of Class
Class VC2		14.77%		4.32%		8.28%

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 April 30, 2003.

²    The Class VC shares commenced operations and performance for the Class began 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, 2010 through December 31, 2010).

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 7/1/10 – 12/31/10” 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†
	7/1/10		12/31/10		7/1/10 - 12/31/10
Class VC
Actual	$	1,000.00	$	1,191.40	$	6.35
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, 2010

Sector*	%**
Consumer Discretionary		13.54%
Consumer Staples		6.90%
Energy		12.10%
Financials		13.86%
Health Care		11.70%
Industrials		13.80%
Information Technology		13.81%
Materials		6.66%
Telecommunication Services		4.98%
Utilities		2.26%
Short-Term Investment		0.39%
Total		100.00%

* A sector may comprise several industries.

** Represents percent of total investments.

6

Schedule of Investments

December 31, 2010

Investments	Shares (000)			Value
LONG-TERM INVESTMENTS 99.43%
COMMON STOCKS 55.44%
Aerospace & Defense 0.98%
DigitalGlobe, Inc.*		5		$	158,550
Hexcel Corp.*		28			506,520
Moog, Inc. Class A*		14			557,200
Total					1,222,270
Airlines 0.24%
United Continental Holdings, Inc.*		13			300,132
Auto Components 0.14%
Cooper-Standard Holdings, Inc.*		–	(a)		24,975
Cooper-Standard Holdings, Inc.*(b)		3			144,405
Total					169,380
Automobiles 0.35%
Honda Motor Co., Ltd. ADR		11			434,500
Beverages 0.66%
PepsiCo, Inc.		13			816,625
Biotechnology 1.98%
Amgen, Inc.*		9			466,650
BioMarin Pharmaceutical, Inc.*		12			323,160
Celgene Corp.*		15			887,100
Genzyme Corp.*		5			356,000
Human Genome Sciences, Inc.*		18			430,020
Total					2,462,930
Capital Markets 1.09%
Franklin Resources, Inc.		5			556,050
Morgan Stanley		8			217,680
State Street Corp.		7			324,380
T. Rowe Price Group, Inc.		4			258,160
Total					1,356,270
Chemicals 2.09%
Celanese Corp. Series A		7			267,605
CF Industries Holdings, Inc.		2			270,300

See Notes to Financial Statements.

7

Schedule of Investments (continued)

December 31, 2010

Investments	Shares (000)		Value
Chemicals (continued)
Dow Chemical Co. (The)		15	$	512,100
LyondellBasell Industries NV Class A (Netherlands)*(c)		13		434,816
Monsanto Co.		8		522,300
Rockwood Holdings, Inc.*		15		586,800
Total				2,593,921
Commercial Banks 2.50%
PNC Financial Services Group, Inc. (The)		5		303,600
SunTrust Banks, Inc.		11		309,855
U.S. Bancorp		30		809,100
Wells Fargo & Co.		45		1,394,550
Zions Bancorporation		12		290,760
Total				3,107,865
Communications Equipment 1.13%
Aruba Networks, Inc.*		11		229,680
JDS Uniphase Corp.*		40		579,200
QUALCOMM, Inc.		12		593,880
Total				1,402,760
Computers & Peripherals 2.62%
Apple, Inc.*		5		1,451,520
Hewlett-Packard Co.		18		736,750
International Business Machines Corp.		5		733,800
QLogic Corp.*		20		340,400
Total				3,262,470
Consumer Finance 0.38%
Capital One Financial Corp.		11		468,160
Distributors 0.50%
Genuine Parts Co.		12		616,080
Diversified Financial Services 2.09%
Bank of America Corp.		90		1,200,600
JPMorgan Chase & Co.		33		1,399,860
Total				2,600,460
Diversified Telecommunication Services 2.48%
AT&T, Inc.		42		1,233,960
CenturyLink, Inc.		14		646,380

See Notes to Financial Statements.

8

Schedule of Investments (continued)

December 31, 2010

Investments	Shares (000)		Value
Diversified Telecommunication Services (continued)
Frontier Communications Corp.		4	$	35,028
Qwest Communications International, Inc.		40		304,400
Verizon Communications, Inc.		17		590,370
Windstream Corp.		20		278,800
Total				3,088,938
Electric: Utilities 0.43%
UniSource Energy Corp.		15		537,600
Electrical Equipment 1.97%
AMETEK, Inc.		5		206,062
Baldor Electric Co.		8		472,800
Cooper Industries plc		5		291,450
Emerson Electric Co.		17		971,890
Rockwell Automation, Inc.		7		501,970
Total				2,444,172
Food & Staples Retailing 1.47%
CVS Caremark Corp.		7		243,390
Ingles Markets, Inc. Class A		32		606,720
SUPERVALU, INC.		18		173,340
Wal-Mart Stores, Inc.		15		808,950
Total				1,832,400
Food Products 1.73%
Campbell Soup Co.		10		347,500
H.J. Heinz Co.		14		692,440
Kellogg Co.		12		612,960
Kraft Foods, Inc. Class A		16		504,160
Total				2,157,060
Hotels, Restaurants & Leisure 1.70%
Carnival Corp. Unit		6		276,660
Marriott International, Inc. Class A		12		498,480
McDonald’s Corp.		12		882,740
Starwood Hotels & Resorts Worldwide, Inc.		8		455,850
Total				2,113,730
Household Products 0.57%
Procter & Gamble Co. (The)		11		707,630

See Notes to Financial Statements.

9

Schedule of Investments (continued)

December 31, 2010

Investments	Shares (000)		Value
Industrial Conglomerates 1.12%
3M Co.		7	$	604,100
General Electric Co.		43		786,470
Total				1,390,570
Information Technology Services 0.81%
SAIC, Inc.*		40		634,400
SRA International, Inc. Class A*		18		368,100
Total				1,002,500
Insurance 0.54%
MetLife, Inc.		15		675,132
Internet Software & Services 0.31%
GSI Commerce, Inc.*		10		220,400
Sohu.com, Inc. (China)*(c)		3		165,074
Total				385,474
Machinery 3.78%
Actuant Corp. Class A		30		798,600
Caterpillar, Inc.		5		421,470
Danaher Corp.		15		707,550
Dover Corp.		4		204,575
Pall Corp.		13		619,750
Parker Hannifin Corp.		10		819,850
Snap-on, Inc.		20		1,131,600
Total				4,703,395
Media 1.63%
Belo Corp. Class A*		36		254,880
Charter Communications, Inc. Class A*(d)		3		132,785
Interpublic Group of Cos., Inc. (The)*		45		477,900
Omnicom Group, Inc.		8		366,400
Time Warner, Inc.		10		321,700
Walt Disney Co. (The)		13		468,875
Total				2,022,540
Metals & Mining 0.22%
Cliffs Natural Resources, Inc.		2		171,622
Titanium Metals Corp.*		6		103,080
Total				274,702

See Notes to Financial Statements.

10

Schedule of Investments (continued)

December 31, 2010

Investments	Shares (000)		Value
Multi-Line Retail 1.68%
J.C. Penney Co., Inc.		12	$	387,720
Kohl’s Corp.*		12		652,080
Target Corp.		18		1,052,275
Total				2,092,075
Oil, Gas & Consumable Fuels 8.01%
Chevron Corp.		26		2,381,625
ConocoPhillips		29		1,940,850
Continental Resources, Inc.*		12		706,200
Devon Energy Corp.		6		471,060
EOG Resources, Inc.		8		685,575
Exxon Mobil Corp.		28		2,010,800
Hess Corp.		9		696,514
Marathon Oil Corp.		17		629,510
Petroleo Brasileiro SA ADR		13		447,627
Total				9,969,761
Pharmaceuticals 5.01%
Bristol-Myers Squibb Co.		27		714,960
Johnson & Johnson		19		1,175,150
Merck & Co., Inc.		12		432,480
Mylan, Inc.*		96		2,028,121
Pfizer, Inc.		57		998,070
Salix Pharmaceuticals, Ltd.*		5		234,800
Teva Pharmaceutical Industries Ltd. ADR		13		651,625
Total				6,235,206
Real Estate Investment Trusts 0.16%
Simon Property Group, Inc.		2		198,980
Road & Rail 0.63%
Union Pacific Corp.		9		787,610
Semiconductors & Semiconductor Equipment 0.73%
Intel Corp.		21		441,630
PMC-Sierra, Inc.*		25		214,750
Taiwan Semiconductor Manufacturing Co., Ltd. ADR		20		252,041
Total				908,421

See Notes to Financial Statements.

11

Schedule of Investments (continued)

December 31, 2010

Investments	Shares (000)		Value
Software 3.25%
Adobe Systems, Inc.*		17	$	523,260
Blackboard, Inc.*		7		268,450
Citrix Systems, Inc.*		4		239,435
McAfee, Inc.*		7		301,015
Microsoft Corp.		57		1,591,440
Nuance Communications, Inc.*		22		399,960
Oracle Corp.		23		719,900
Total				4,043,460
Specialty Retail 0.46%
Best Buy Co., Inc.		9		291,465
Home Depot, Inc. (The)		8		280,480
Total				571,945
Total Common Stocks (cost $56,902,417)				68,957,124

	Interest Rate		Maturity Date		Principal Amount (000)
CONVERTIBLE BONDS 8.06%
Airlines 0.12%
United Continental Holdings, Inc.		4.50%		6/30/2021	$	150	152,625
Automobiles 0.48%
Ford Motor Co.		4.25%		11/15/2016		300	601,125
Beverages 0.33%
Molson Coors Brewing Co.		2.50%		7/30/2013		350	406,875
Biotechnology 1.14%
BioMarin Pharmaceutical, Inc.		2.50%		3/29/2013		200	341,000
Gilead Sciences, Inc.		0.625%		5/1/2013		700	775,250
Vertex Pharmaceuticals, Inc.		3.35%		10/1/2015		300	304,875
Total							1,421,125
Commercial Services & Supplies 0.10%
CRA International, Inc.		2.875%		6/15/2034		125	131,406
Computers & Peripherals 0.08%
SanDisk Corp.		1.00%		5/15/2013		100	96,750

See Notes to Financial Statements.

12

Schedule of Investments (continued)

December 31, 2010

Investments	Interest Rate		Maturity Date		Principal Amount (000)		Value
Electrical Equipment 0.54%
Roper Industries, Inc.		Zero Coupon		1/15/2034	$	700	$	671,125
Electronic Equipment, Instruments & Components 0.30%
Itron, Inc.		2.50%		8/1/2026		350		370,125
Energy Equipment & Services 0.15%
SunPower Corp.		4.75%		4/15/2014		200		185,250
Health Care Providers & Services 0.45%
Five Star Quality Care, Inc.		3.75%		10/15/2026		575		559,906
Information Technology Services 0.21%
Symantec Corp.		0.75%		6/15/2011		250		260,313
Metals & Mining 0.51%
Newmont Mining Corp.		1.25%		7/15/2014		350		503,562
Newmont Mining Corp.		3.00%		2/15/2012		90		125,663
Total								629,225
Pharmaceuticals 0.85%
Allergan, Inc.		1.50%		4/1/2026		200		227,000
Teva Pharmaceutical Finance Co. BV (Israel)(c)		1.75%		2/1/2026		750		825,937
Total								1,052,937
Professional Services 0.21%
FTI Consulting, Inc.		3.75%		7/15/2012		200		257,000
Real Estate Investment Trusts 0.21%
ERP Operating LP		3.85%		8/15/2026		250		262,500
Semiconductors & Semiconductor Equipment 0.73%
Intel Corp.		2.95%		12/15/2035		500		500,625
Xilinx, Inc.†		2.625%		6/15/2017		350		412,125
Total								912,750
Software 1.29%
EMC Corp.		1.75%		12/1/2011		200		290,250
Informatica Corp.		3.00%		3/15/2026		600		1,319,250
Total								1,609,500

See Notes to Financial Statements.

13

Schedule of Investments (continued)

December 31, 2010

Investments	Interest Rate		Maturity Date		Principal Amount (000)			Value
Wireless Telecommunication Services 0.36%
SBA Communications Corp.		4.00%		10/1/2014	$	300		$	447,000
Total Convertible Bonds (cost $8,943,908)									10,027,537
					Shares (000)
CONVERTIBLE PREFERRED STOCKS 7.49%
Auto Components 0.36%
Autoliv, Inc. (Sweden)(c)		8.00%				4			425,700
Cooper-Standard Holdings, Inc. PIK(b)		7.00%				–	(a)		20,720
Total									446,420
Automobiles 0.28%
General Motors Co.		4.75%				7			351,715
Capital Markets 0.82%
AMG Capital Trust I		5.10%				17			853,187
Legg Mason, Inc.		7.00%				5			169,500
Total									1,022,687
Commercial Banks 0.86%
Fifth Third Bancorp		8.50%				4			520,065
Wells Fargo & Co.		7.50%				–	(a)		550,303
Total									1,070,368
Diversified Financial Services 1.05%
Bank of America Corp.		7.25%				–	(a)		478,485
Citigroup, Inc.		7.50%				6			820,140
Total									1,298,625
Electric: Utilities 0.44%
NextEra Energy, Inc.		8.375%				11			551,004
Food Products 1.08%
Archer Daniels Midland Co.		6.25%				20			776,600
Bunge Ltd.		4.875%				6			558,750
Total									1,335,350
Insurance 0.58%
Hartford Financial Services Group, Inc. (The)		7.25%				10			256,100
XL Group plc (Ireland)(c)		10.75%				15			467,400
Total									723,500

See Notes to Financial Statements.

14

Schedule of Investments (continued)

December 31, 2010

Investments	Interest Rate				Shares (000)			Value
Oil, Gas & Consumable Fuels 1.50%
Apache Corp.		6.00%				14		$	927,640
El Paso Corp.		4.99%				–	(a)		941,200
Total									1,868,840
Road & Rail 0.52%
Kansas City Southern		5.125%				–	(a)		640,100
Thrifts & Mortgage Finance 0.00%
Fannie Mae		8.75%				6			3,000
Total Convertible Preferred Stocks (cost $8,282,424)									9,311,609
			Maturity Date		Principal Amount (000)
FLOATING RATE LOANS(e) 0.59%
Diversified Financial Services 0.19%
Nuveen Investments, Inc. 2nd Lien Term Loan		12.50%		7/31/2015	$	225			243,984
Software 0.40%
Nuance Communications, Inc. Incremental Term Loan		2.01%		3/29/2013		500			494,688
Total Floating Rate Loans (cost $690,288)									738,672
					Shares (000)
FOREIGN COMMON STOCKS(f) 4.73%
China 0.20%
Metals & Mining
China Zhongwang Holdings Ltd.						442			246,448
France 0.51%
Automobiles 0.25%
Renault SA*						5			310,816
Electrical Equipment 0.26%
Alstom SA						7			325,974
Total France									636,790

See Notes to Financial Statements.

15

Schedule of Investments (continued)

December 31, 2010

Investments	Shares (000)		Value
Germany 0.84%
Air Freight & Logistics 0.30%
Deutsche Post AG Registered Shares		22	$	377,728
Household Products 0.30%
Henkel KGaA		7		376,431
Software 0.24%
SAP AG		6		294,334
Total Germany				1,048,493
Hong Kong 0.27%
Specialty Retail
GOME Electrical Appliances Holdings Ltd.*		934		336,455
Japan 0.34%
Household Durables
Sony Corp.		12		429,176
Norway 0.42%
Commercial Banks
DnB NOR ASA		37		517,704
Singapore 0.26%
Airlines
Singapore Airlines Ltd.		27		321,892
Switzerland 0.86%
Chemicals 0.26%
Syngenta AG		1		322,447
Food Products 0.31%
Nestle SA Registered Shares		7		384,192
Pharmaceuticals 0.29%
Roche Holding Ltd. AG		2		359,006
Total Switzerland				1,065,645

See Notes to Financial Statements.

16

Schedule of Investments (continued)

December 31, 2010

Investments					Shares (000)		Value
United Kingdom 1.03%
Metals & Mining 0.64%
Anglo American plc						9	$	452,017
Vedanta Resources plc						9		341,881
Total								793,898
Wireless Telecommunication Services 0.39%
Vodafone Group plc						189		488,007
Total United Kingdom								1,281,905
Total Foreign Common Stocks (cost $5,575,381)								5,884,508
	Interest Rate		Maturity Date		Principal Amount (000)
HIGH YIELD CORPORATE BONDS 23.10%
Aerospace & Defense 0.50%
GeoEye, Inc.		9.625%		10/1/2015	$	550		624,250
Air Freight & Logistics 0.31%
Park-Ohio Industries, Inc.		8.375%		11/15/2014		375		382,500
Airlines 0.27%
United Airlines, Inc.†		9.875%		8/1/2013		315		340,988
Auto Components 0.07%
Goodyear Tire & Rubber Co. (The)		10.50%		5/15/2016		75		85,875
Automobiles 0.50%
TRW Automotive, Inc.†		8.875%		12/1/2017		550		618,750
Building Products 0.11%
New Enterprise Stone & Lime Co., Inc.†		11.00%		9/1/2018		150		143,250
Capital Markets 0.61%
Nuveen Investments, Inc.		10.50%		11/15/2015		400		411,000
Pinafore LLC/Pinafore, Inc.†		9.00%		10/1/2018		50		54,250
Raymond James Financial, Inc.		8.60%		8/15/2019		250		296,749
Total								761,999

See Notes to Financial Statements.

17

Schedule of Investments (continued)

December 31, 2010

Investments	Interest Rate		Maturity Date		Principal Amount (000)		Value
Chemicals 0.78%
Chemtura Corp.†		7.875%		9/1/2018	$	300	$	319,500
Dow Chemical Co. (The)		8.55%		5/15/2019		150		188,282
INEOS Group Holdings plc (United Kingdom)†(c)		8.50%		2/15/2016		275		263,312
Lyondell Chemical Co.†		8.00%		11/1/2017		179		198,466
Total								969,560
Commercial Banks 0.31%
SVB Financial Group		5.375%		9/15/2020		125		120,421
Zions Bancorporation		7.75%		9/23/2014		250		260,837
Total								381,258
Commercial Services & Supplies 0.77%
Bunge NA Finance LP		5.90%		4/1/2017		175		180,332
First Data Corp.†		8.25%		1/15/2021		224		216,160
First Data Corp.		9.875%		9/24/2015		51		48,833
First Data Corp.†		12.625%		1/15/2021		224		215,040
International Lease Finance Corp.		8.25%		12/15/2020		50		51,562
International Lease Finance Corp.†		8.75%		3/15/2017		225		241,875
Old AII, Inc.(g)		10.00%		12/15/2016		125		314
Total								954,116
Communications Equipment 0.85%
Brocade Communications Systems, Inc.		6.625%		1/15/2018		600		634,500
Brocade Communications Systems, Inc.		6.875%		1/15/2020		150		160,500
Hughes Network Systems LLC		9.50%		4/15/2014		250		259,062
Total								1,054,062
Consumer Finance 0.35%
American General Finance Corp.		6.90%		12/15/2017		200		162,500
Ford Motor Credit Co. LLC		8.00%		6/1/2014		250		275,633
Total								438,133
Containers & Packaging 0.97%
Ardagh Packaging Finance plc (Ireland)†(c)		7.375%		10/15/2017		200		207,250
Ardagh Packaging Finance plc (Ireland)†(c)		9.125%		10/15/2020		200		209,000
Ball Corp.		7.375%		9/1/2019		150		162,000
Crown Cork & Seal Co., Inc.		7.375%		12/15/2026		350		349,125
Sealed Air Corp.		7.875%		6/15/2017		250		275,275
Total								1,202,650

See Notes to Financial Statements.

18

Schedule of Investments (continued)

December 31, 2010

Investments	Interest Rate		Maturity Date			Principal Amount (000)		Value
Diversified Financial Services 1.11%
Capital One Capital VI		8.875%		5/15/2040		$	400	$	419,500
New York City Industrial Development Agency†		11.00%		3/1/2029			200		252,944
RBS Global, Inc./Rexnord LLC		8.50%		5/1/2018			250		266,875
RBS Global, Inc./Rexnord LLC		11.75%		8/1/2016			325		350,187
Wachovia Capital Trust III		5.80%		–	(h)		100		87,125
Total									1,376,631
Diversified Telecommunication Services 1.42%
Cincinnati Bell, Inc.		7.00%		2/15/2015			300		299,250
Intelsat Luxembourg SA (Luxembourg)(c)		11.25%		2/4/2017			450		492,750
SBA Telecommunications, Inc.		8.25%		8/15/2019			300		329,250
Windstream Corp.		7.00%		3/15/2019			650		643,500
Total									1,764,750
Electric: Utilities 0.27%
Ameren Illinois Co.		9.75%		11/15/2018			150		192,689
Texas Competitive Electric Holdings Co. LLC		10.25%		11/1/2015			250		142,500
Total									335,189
Electrical Equipment 0.27%
Baldor Electric Co.		8.625%		2/15/2017			300		337,500
Food & Staples Retailing 0.24%
Dunkin’ Finance Corp.†		9.625%		12/1/2018			300		304,500
Food Products 0.10%
Corn Products International, Inc.		4.625%		11/1/2020			125		123,525
Health Care Equipment & Supplies 1.12%
Bausch & Lomb, Inc.		9.875%		11/1/2015			500		537,500
Biomet, Inc.		10.00%		10/15/2017			200		219,500
HCA, Inc.		9.125%		11/15/2014			600		630,750
Total									1,387,750
Health Care Providers & Services 0.76%
Community Health Systems, Inc.		8.875%		7/15/2015			400		421,000
United Surgical Partners International, Inc. PIK		9.25%		5/1/2017			250		261,250
Vanguard Health Holding Co. II LLC/Vanguard Holding Co. II, Inc.		8.00%		2/1/2018			250		257,500
Total									939,750

See Notes to Financial Statements.

19

Schedule of Investments (continued)

December 31, 2010

Investments	Interest Rate		Maturity Date		Principal Amount (000)		Value
Hotels, Restaurants & Leisure 1.37%
Hyatt Hotels Corp.†		5.75%		8/15/2015	$	355	$	371,686
Marina District Finance Co., Inc.†		9.875%		8/15/2018		300		297,000
McDonald’s Corp.		5.00%		2/1/2019		350		383,400
River Rock Entertainment Authority (The)		9.75%		11/1/2011		20		17,950
Seminole Indian Tribe of Florida†		7.75%		10/1/2017		75		77,813
Starwood Hotels & Resorts Worldwide, Inc.		7.875%		10/15/2014		200		228,000
Station Casinos, Inc.(g)		6.50%		2/1/2014		250		25
Wendy’s/Arby’s Restaurants LLC		10.00%		7/15/2016		250		272,500
Wyndham Worldwide Corp.		5.75%		2/1/2018		50		50,915
Total								1,699,289
Household Durables 0.43%
Armored AutoGroup, Inc.†		9.25%		11/1/2018		75		74,813
K. Hovnanian Enterprises, Inc.		10.625%		10/15/2016		150		154,500
Lennar Corp.		12.25%		6/1/2017		250		302,500
Total								531,813
Independent Power Producers & Energy Traders 0.52%
AES Corp. (The)		8.00%		10/15/2017		325		345,313
Mirant Americas Generation LLC		9.125%		5/1/2031		300		297,000
Total								642,313
Information Technology Services 0.84%
SunGard Data Systems, Inc.†		7.375%		11/15/2018		150		151,500
SunGard Data Systems, Inc.†		7.625%		11/15/2020		100		101,750
SunGard Data Systems, Inc.		10.25%		8/15/2015		750		790,312
Total								1,043,562
Insurance 0.20%
Liberty Mutual Group, Inc.†		10.75%		6/15/2058		200		244,000
Leisure Equipment & Products 0.54%
Expedia, Inc.		8.50%		7/1/2016		175		192,500
Mattel, Inc.		4.35%		10/1/2020		50		48,547
Speedway Motorsports, Inc.		8.75%		6/1/2016		400		433,000
Total								674,047
Machinery 0.22%
Oshkosh Corp.		8.50%		3/1/2020		250		275,625

See Notes to Financial Statements.

20

Schedule of Investments (continued)

December 31, 2010

Investments	Interest Rate			Maturity Date		Principal Amount (000)		Value
Media 1.35%
Affinion Group, Inc.		11.50%			10/15/2015	$	475	$	496,375
CCO Holdings LLC/CCO Holdings Capital Corp.		8.125%			4/30/2020		300		317,250
Gray Television, Inc.		10.50%			6/29/2015		150		151,875
Mediacom Broadband LLC		8.50%			10/15/2015		500		505,000
Mediacom Communications Corp.		9.125%			8/15/2019		100		102,500
WMG Acquisition Corp.		9.50%			6/15/2016		100		107,750
Total									1,680,750
Metals & Mining 0.99%
Cliffs Natural Resources, Inc.		5.90%			3/15/2020		350		369,393
FMG Resources (August 2006) Pty Ltd. (Australia)†(c)		6.875%			2/1/2018		400		400,000
FMG Resources (August 2006) Pty Ltd. (Australia)†(c)		7.00%			11/1/2015		50		51,500
Freeport-McMoRan Copper & Gold, Inc.		8.375%			4/1/2017		250		276,902
Noranda Aluminum Acquisition Corp. PIK		5.193%	#		5/15/2015		154		138,808
Total									1,236,603
Multi-Line Retail 0.28%
Macy’s Retail Holdings, Inc.		8.375%			7/15/2015		300		352,500
Multi-Utilities 0.59%
Black Hills Corp.		9.00%			5/15/2014		350		402,050
NiSource Finance Corp.		10.75%			3/15/2016		250		334,700
Total									736,750
Oil, Gas & Consumable Fuels 2.41%
Concho Resources, Inc.		7.00%			1/15/2021		150		154,125
CONSOL Energy, Inc.†		8.25%			4/1/2020		400		434,000
Continental Resources, Inc.		8.25%			10/1/2019		750		836,250
El Paso Corp.		7.00%			6/15/2017		500		530,157
El Paso Corp.		7.25%			6/1/2018		250		268,879
Forest Oil Corp.		7.25%			6/15/2019		200		204,000
Linn Energy LLC/Linn Energy Finance Corp.†		7.75%			2/1/2021		150		154,500
Tennessee Gas Pipeline Co.		7.00%			10/15/2028		250		265,610
Whiting Petroleum Corp.		6.50%			10/1/2018		150		152,250
Total									2,999,771
Pharmaceuticals 0.09%
Mylan, Inc.†		7.625%			7/15/2017		50		53,438
Mylan, Inc.†		7.875%			7/15/2020		50		54,125
Total									107,563

See Notes to Financial Statements.

21

Schedule of Investments (continued)

December 31, 2010

Investments	Interest Rate		Maturity Date		Principal Amount (000)		Value
Real Estate Investment Trusts 0.44%
Host Hotels & Resorts LP		6.375%		3/15/2015	$	175	$	178,500
ProLogis		6.875%		3/15/2020		350		372,240
Total								550,740
Specialty Retail 0.51%
Brookstone Co., Inc.†		13.00%		10/15/2014		196		181,790
Limited Brands, Inc.		8.50%		6/15/2019		400		459,000
Total								640,790
Textiles, Apparel & Luxury Goods 0.01%
INVISTA†		9.25%		5/1/2012		16		16,320
Thrifts & Mortgage Finance 0.00%
Washington Mutual Bank(g)		6.875%		6/15/2011		275		1,031
Tobacco 0.10%
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Luxembourg SA†		8.50%		5/15/2018		125		126,250
Transportation Infrastructure 0.11%
Asciano Finance Ltd. (Australia)†(c)		4.625%		9/23/2020		150		139,376
Wireless Telecommunication Services 0.41%
Clearwire Communications LLC/Clearwire Finance, Inc.†		12.00%		12/1/2017		50		51,875
Sprint Capital Corp.		6.90%		5/1/2019		350		347,375
Wind Acquisition Finance SA (Italy)†(c)		11.75%		7/15/2017		100		113,250
Total								512,500
Total High Yield Corporate Bonds (cost $27,625,890)								28,738,579
					Shares (000)
NON-CONVERTIBLE PREFERRED STOCK 0.00%
Thrifts & Mortgage Finance
Fannie Mae* (cost $213,465)		Zero Coupon				9		4,760

See Notes to Financial Statements.

22

Schedule of Investments (continued)

December 31, 2010

Investments	Exercise Price		Expiration Date		Shares (000)			Value
WARRANTS 0.02%
Auto Components 0.01%
Cooper-Standard Holdings, Inc.*	$	27.33		11/27/2017		–	(a)	$	5,198
Cooper-Standard Holdings, Inc.*(b)		27.33		11/27/2017		–	(a)		4,185
Total									9,383
Media 0.01%
Charter Communications, Inc.*		46.86		11/30/2014		1			10,502
Total Warrants (cost $8,558)									19,885
Total Long-Term Investments (cost $108,242,331)									123,682,674
					Principal Amount (000)
SHORT-TERM INVESTMENT 0.39%
Repurchase Agreement
Repurchase Agreement dated 12/31/2010, 0.04% due 1/3/2011 with Fixed Income Clearing Corp. collateralized by $495,000 of Federal Home Loan Mortgage Corp. at 1.75% due 1/28/2013; value: $499,331; proceeds: $487,984 (cost $487,983)					$	488			487,983
Total Investments in Securities 99.82% (cost $108,730,314)									124,170,657
Cash, Foreign Cash and Other Assets in Excess of Liabilities(i) 0.18%									221,658
Net Assets 100.00%								$	124,392,315

ADR	American Depositary Receipt.
PIK	Payment-in-kind.
Unit	More than one class of securities traded together.
*	Non-income producing security.
†	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 in effect at December 31, 2010.
(a)	Amount is less than 1,000 shares.
(b)	Restricted securities of Cooper Standard Holdings, Inc. acquired through private placement for fiscal year ended December 31, 2010 are as follows:

Investment Type	Acquisition Date	Acquired Shares	Cost on Acquisition Date	Fair value per share at December 31, 2010
Common Stock	May 24, 2010	3,209	$70,676	$45.00
Convertible Preferred Stock	May 24, 2010	110	11,000	185.00
Convertible Preferred Stock	July 19, 2010	2	200	185.00
Warrant	May 27, 2010	186	–	22.50

See Notes to Financial Statements.

23

Schedule of Investments (concluded)

December 31, 2010

(c)	Foreign security traded in U.S. dollars.
(d)	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, 2010 is $38.94.
(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 Interbank Offered Rate (“LIBOR”) or the prime rate offered by major U.S. banks. The rate shown is the rate in effect at December 31, 2010.
(f)	Investment in non-U.S. dollar denominated securities.
(g)	Defaulted security.
(h)	Security is perpetual in nature and has no stated maturity.
(i)	Cash, Foreign Cash and Other Assets in Excess of Liabilities include unrealized appreciation on open futures contracts, as follows:

Open Futures Contracts at December 31, 2010:

Type	Expiration	Contracts		Position	Market Value		Unrealized Appreciation
U.S. 10-Year Treasury Note	March 2011		25	Short	$	(3,010,938)	$	89,573

See Notes to Financial Statements.

24

Statement of Assets and Liabilities

December 31, 2010

ASSETS:
Investments in securities, at value (cost $108,730,314)	$	124,170,657
Deposits with broker for futures collateral		40,000
Foreign cash, at value (cost $70,081)		74,054
Receivables:
Interest and dividends		727,062
Investment securities sold		37,509
Capital shares sold		8,940
From advisor (See Note 3)		8,688
Prepaid expenses		1,025
Total assets		125,067,935
LIABILITIES:
Payables:
Investment securities purchased		480,625
Management fee		78,363
Variation margin		11,328
Directors’ fees		8,169
Fund administration		4,179
Capital shares reacquired		2,408
Accrued expenses and other liabilities		90,548
Total liabilities		675,620
NET ASSETS	$	124,392,315
COMPOSITION OF NET ASSETS:
Paid-in capital	$	129,091,894
Distributions in excess of net investment income		(131,747	)
Accumulated net realized loss on investments, futures contracts and foreign currency related transactions		(20,102,490	)
Net unrealized appreciation on investments, futures contracts and translation of assets and liabilities denominated in foreign currencies		15,534,658
Net Assets	$	124,392,315
Outstanding shares (50 million shares of common stock authorized, $.001 par value)		9,292,386
Net asset value, offering and redemption price per share (Net assets divided by outstanding shares)		$13.39

See Notes to Financial Statements.

25

Statement of Operations

For the Year Ended December 31, 2010

Investment income:
Dividends (net of foreign withholding taxes of $17,348)	$	1,858,919
Interest and other		2,740,613
Total investment income		4,599,532
Expenses:
Management fee		882,399
Shareholder servicing		426,643
Fund administration		47,061
Professional		45,028
Reports to shareholders		40,102
Custody		7,611
Directors’ fees		4,703
Other		3,833
Gross expenses		1,457,380
Expense reductions (See Note 7)		(158	)
Management fee waived (See Note 3)		(104,210	)
Net expenses		1,353,012
Net investment income		3,246,520
Net realized and unrealized gain:
Net realized gain on investments, futures contracts and foreign currency related transactions		2,431,321
Net change in unrealized appreciation/depreciation on investments, futures contracts and translation of assets and liabilities denominated in foreign currencies		10,706,589
Net realized and unrealized gain		13,137,910
Net Increase in Net Assets Resulting From Operations	$	16,384,430

See Notes to Financial Statements.

26

Statements of Changes in Net Assets

INCREASE IN NET ASSETS	For the Year Ended December 31, 2010			For the Year Ended December 31, 2009
Operations:
Net investment income	$	3,246,520		$	3,530,059
Net realized gain (loss) on investments, futures contracts and foreign currency related transactions		2,431,321			(8,106,514	)
Net change in unrealized appreciation/depreciation on investments, futures contracts and translation of assets and liabilities denominated in foreign currencies		10,706,589			26,519,676
Net increase in net assets resulting from operations		16,384,430			21,943,221
Distributions to shareholders from:
Net investment income		(3,354,425	)		(3,660,866	)
Capital share transactions (See Note 10):
Proceeds from sales of shares		9,867,715			18,566,088
Reinvestment of distributions		3,354,423			3,660,864
Cost of shares reacquired		(18,623,836	)		(16,323,673	)
Net increase (decrease) in net assets resulting from capital share transactions		(5,401,698	)		5,903,279
Net increase in net assets		7,628,307			24,185,634
NET ASSETS:
Beginning of year	$	116,764,008		$	92,578,374
End of year	$	124,392,315		$	116,764,008
Distributions in excess of net investment income	$	(131,747	)	$	(118,786	)

See Notes to Financial Statements.

27

Financial Highlights

	Year Ended 12/31
	2010			2009			2008			2007			2006
Per Share Operating Performance
Net asset value, beginning of year		$11.98			$10.02			$14.79			$15.28			$13.93
Investment operations:
Net investment income(a)		.34			.38			.49			.47			.39
Net realized and unrealized gain (loss)		1.44			1.97			(4.41	)		.02			1.64
Total from investment operations		1.78			2.35			(3.92	)		.49			2.03
Distributions to shareholders from:
Net investment income		(.37	)		(.39	)		(.53	)		(.48	)		(.37	)
Net realized gain		–			–			(.32	)		(.50	)		(.31	)
Total distributions		(.37	)		(.39	)		(.85	)		(.98	)		(.68	)
Net asset value, end of year		$13.39			$11.98			$10.02			$14.79			$15.28
Total Return(b)		14.77	%		23.41	%		(26.19	)%		3.16	%		14.55	%
Ratios to Average Net Assets:
Expenses, excluding expense reductions and including management fee waived and expenses reimbursed		1.15	%		1.15	%		1.14	%		1.15	%		1.15	%
Expenses, including expense reductions, management fee waived and expenses reimbursed		1.15	%		1.15	%		1.14	%		1.14	%		1.15	%
Expenses, excluding expense reductions, management fee waived and expenses reimbursed		1.24	%		1.27	%		1.29	%		1.20	%		1.27	%
Net investment income		2.76	%		3.52	%		3.83	%		2.92	%		2.67	%
Supplemental Data:
Net assets, end of year (000)		$124,392			$116,764			$92,578			$128,675			$97,741
Portfolio turnover rate		35.78	%		54.60	%		69.31	%		28.41	%		35.51	%

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

^(b) Total return does not consider the effects of sales charges or other expenses imposed by an insurance company and assumes the reinvestment of all distributions.

See Notes to Financial Statements.

28

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 and was incorporated under Maryland law in 1989. The Company consists of twelve separate portfolios (the “Funds”). This report covers Capital Structure Portfolio (the “Fund,” formerly, America’s Value Portfolio). Effective May 1, 2010, America’s Value Portfolio changed its name to Capital Structure Portfolio. 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 has 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 the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

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. Exchange-traded options and futures contracts are valued at the last sale price in the market where they are principally traded. If no sale has occurred, the mean between the most recently quoted bid and asked prices is used. Floating rate loans are valued at the average of bid and ask quotations obtained from dealers in loans on the basis of prices supplied by independent pricing services. 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 fair value.

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

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

29

Notes to Financial Statements (continued)

(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, 2007 through December 31, 2010. 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, futures contracts 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 gain on investments, futures contracts 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) Futures Contracts–The Fund may purchase and sell futures contracts to enhance returns, to attempt to hedge some of its investment risk, or as a substitute position for holding the underlying asset on which the instrument is based. At the time of entering into a futures transaction, an investor is required to deposit and maintain a specified amount of cash or eligible securities called “initial margin.” Subsequent payments made or received by a Fund called “variation margin” are made on a daily basis as the market price of the futures contract fluctuates. The Fund will record an unrealized gain (loss) based on the amount of variation margin. When a contract is closed, a realized gain (loss) is recorded equal to the difference between the opening and closing value of the contract.

(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, the Fund may incur a loss upon disposition of the securities.

30

Notes to Financial Statements (continued)

(i) 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 (“NAV”). 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.

(j) 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 the Fund invests may be subject to some restrictions on resale. For example, the Fund may be contractually obligated to receive approval from the Agent and/or Borrower prior to the sale of these investments. The Fund generally has no right to enforce compliance with the terms of the loan agreement with the Borrower. As a result, the 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, 2010, the Fund had no unfunded loan commitments.

(k) Fair Value Measurements–Fair value is defined as the price that the Fund would receive upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure

31

Notes to Financial Statements (continued)

purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk – for example, the risk inherent in a particular valuation technique used to measure fair value (such as a pricing model) and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below:

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

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

• Level 3 - significant unobservable inputs (including 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, 2010 in valuing the Fund’s investments carried at value:

Investment Type*	Level 1		Level 2		Level 3		Total
Common Stocks	$	68,812,719	$	144,405	$	–	$	68,957,124
Convertible Bonds		–		10,027,537		–		10,027,537
Convertible Preferred Stocks		5,871,951		3,439,658		–		9,311,609
Floating Rate Loans		–		738,672		–		738,672
Foreign Common Stocks		5,884,508		–		–		5,884,508
High Yield Corporate Bonds		–		28,738,579		–		28,738,579
Non-Convertible Preferred Stock		4,760		–		–		4,760
Warrants		10,502		9,383		–		19,885
Repurchase Agreement		–		487,983		–		487,983
Total	$	80,584,440	$	43,586,217	$	–	$	124,170,657
Other Financial Instruments
Futures Contracts
Assets	$	89,573	$	–	$	–	$	89,573
Liabilities		–		–		–		–
Total	$	89,573	$	–	$	–	$	89,573

* See Schedule of Investments for values in each industry.

(l) Disclosures about Derivative Instruments and Hedging Activities–The Fund entered into U.S. Treasury futures contracts during the fiscal year ended December 31, 2010 (as described in note 2(g)) to hedge against changes in interest rates. The Fund bears the risk of interest rates moving unexpectedly, in which case the Fund may not achieve the anticipated benefits of the futures contracts and realize a loss. There is minimal counterparty credit risk to the Fund since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees futures against default.

32

Notes to Financial Statements (continued)

As of December 31, 2010, the Fund had a futures interest rate contract with a cumulative unrealized appreciation of $89,573 which is included in the Schedule of Investments. Only the current day’s variation margin is included in the Statement of Assets and Liabilities. Amounts of ($236,822) and $89,573 are included in the Statement of Operations related to futures contracts under the captions Net realized gain on investments, futures contracts and foreign currency related transactions and Net change in unrealized appreciation/depreciation on investments, futures contracts and translation of assets and liabilities denominated in foreign currencies, respectively. The average number of futures contracts throughout the fiscal year was 19.

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 rate:

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

For the fiscal year ended December 31, 2010, the effective management fee, net of waivers, was at an annualized rate of .66% of the Fund’s average daily net assets.

In addition, Lord Abbett provides certain administrative services to the Fund pursuant to an Administrative Services Agreement in return for a fee at an annual rate of .04% of the Fund’s average daily net assets.

For the period January 1, 2010 through April 30, 2010, Lord Abbett voluntarily agreed to waive all or a portion of its management fee and, if necessary, reimburse the Fund’s other expenses to the extent necessary so that total net annual operating expenses did not exceed an annualized rate of 1.15%.

For the period May 1, 2010 through April 30, 2011, Lord Abbett has contractually agreed to continue such waivers under the same terms. This agreement may be terminated only upon the approval of the Fund’s Board of Directors.

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 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, 2010, the Fund incurred expenses of $411,786 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.

33

Notes to Financial Statements (continued)

4.    DISTRIBUTIONS AND CAPITAL LOSS CARRYFORWARDS

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

The tax character of distributions paid during the fiscal years ended December 31, 2010 and the 2009 was as follows:

	Year Ended 12/31/2010		Year Ended 12/31/2009
Distributions paid from:
Ordinary income	$	3,354,425	$	3,660,866
Total distributions paid	$	3,354,425	$	3,660,866

As of December 31, 2010, the components of accumulated losses on a tax-basis were as follows:

Undistributed ordinary income – net	$	25,808
Total undistributed earnings	$	25,808
Capital loss carryforwards*		(19,952,821	)
Temporary differences		(11,462	)
Unrealized gains – net		15,238,896
Total accumulated losses – net	$	(4,699,579	)

* As of December 31, 2010, the capital loss carryforwards, along with the related expiration dates, were as follows:

2016		2017		Total
	$9,207,095	$	10,745,726	$	19,952,821

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 ordinary losses of $3,294 during fiscal 2010.

As of December 31, 2010, the aggregate unrealized security gains and losses based on cost for U.S. federal income tax purposes were as follows:

Tax cost	$	108,936,503
Gross unrealized gain		19,055,675
Gross unrealized loss		(3,821,521	)
Net unrealized security gain	$	15,234,154

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.

34

Notes to Financial Statements (continued)

Permanent items identified during the fiscal year ended December 31, 2010 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
	$94,944	$	(94,944	)

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

On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the “Modernization Act”) was signed by the President. The Modernization Act includes numerous provisions that generally become effective for taxable years beginning after the date of enactment. Management is currently assessing the impact of the Modernization Act as it relates to the Fund.

5.    PORTFOLIO SECURITIES TRANSACTIONS

Purchases and sales of investment securities (excluding short-term investments) for the fiscal year ended December 31, 2010 were as follows:

Purchases	Sales
$41,050,568	$	41,957,184

There were no purchases or sales of U.S. Government securities for the fiscal year ended December 31, 2010.

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 an arrangement with its transfer agent and custodian, whereby credits realized as a result of uninvested cash balances are used to reduce a portion of 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.

35

Notes to Financial Statements (continued)

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 assets in foreign securities. The Fund’s exposure to foreign companies (and ADRs) presents increased market, liquidity, currency, political and other risks. The Fund may invest up to 10% of its net assets in senior loans, which are subject to increased credit and liquidity risks. Senior loans are business loans made to borrowers that may be U.S. or foreign corporations, partnerships, or other business entities.

The Fund is subject to the risks associated with derivatives, which may be different from and greater than the risks associated with directly investing in securities. Derivatives may be subject to risks such as liquidity risk, leveraging risk, interest rate risk, market risk, and credit risk. Illiquid securities may lower the Fund’s returns since the Fund may be unable to sell these securities at their desired time or price. Derivatives also may involve the risk of mispricing or improper valuation and the risk that changes in the value of the derivative may not correlate perfectly with the value of the underlying asset, rate or index. Whether the Fund’s use of derivatives is successful will depend on, among other things, if Lord Abbett correctly forecasts market movements, changes in foreign exchange and interest rates, and other factors. If Lord Abbett incorrectly forecasts these and other factors, the Fund’s performance could suffer.

36

Notes to Financial Statements (concluded)

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, 2010			Year Ended December 31, 2009
Shares sold		797,596			1,751,146
Reinvestment of distributions		251,090			304,818
Shares reacquired		(1,499,567	)		(1,548,265	)
Increase (decrease)		(450,881	)		507,699

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 of Capital Structure Portfolio (formerly known as America’s Value Portfolio), one of the portfolios constituting the Lord Abbett Series Fund, Inc. (the “Company”), including the schedule of investments, as of December 31, 2010, 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, 2010, by correspondence with the custodian, brokers and agent banks; where replies were not received from brokers or agent banks, 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 Capital Structure Portfolio (formerly known as America’s Value Portfolio) of the Lord Abbett Series Fund, Inc. as of December 31, 2010, 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 15, 2011

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 the investment adviser provides, and annually considers whether to renew the contract with the adviser. Generally, each Director holds office until his/her successor is elected and qualified or until his/her earlier resignation or removal, as provided in the Company’s organizational documents.

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

Interested Directors

The following Directors are associated with Lord Abbett and are “interested persons” of the Company as defined in the Act. Mr. Dow and Ms. Foster are officers and directors or trustees of each of the 13 Lord Abbett-sponsored funds, which consist of 53 portfolios or series.

Name, Address and Year of Birth	Current Position and Length of Service with the Company	Principal Occupation and Other Directorships During Past Five Years
Robert S. Dow Lord, Abbett & Co. LLC 90 Hudson Street Jersey City, NJ 07302 (1945)	Director since 1995 and Chairman since 1996	Principal Occupation: Senior Partner of Lord Abbett (since 2007) and was formerly Managing Partner (1996 - 2007) and Chief Investment Officer (1995 – 2007), joined Lord Abbett in 1972. Other Directorships: None.
Daria L. Foster Lord, Abbett & Co. LLC 90 Hudson Street Jersey City, NJ 07302 (1954)	Director and President since 2006	Principal Occupation: Managing Partner of Lord Abbett (since 2007), and was formerly Director of Marketing and Client Service, joined Lord Abbett in 1990. Other Directorships: None.

Independent Directors

The following Independent Directors also are directors or trustees of each of the 13 Lord Abbett-sponsored funds, which consist of 53 portfolios or series.

Name, Address and Year of Birth	Current Position and Length of Service with the Company	Principal Occupation and Other Directorships During Past Five Years
E. Thayer Bigelow Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1941)	Director since 1994	Principal Occupation: Managing General Partner, Bigelow Media, LLC (since 2000); Senior Adviser, Time Warner Inc. (1998 - 2000). Other Directorships: Currently serves as director of Crane Co. (since 1984) and Huttig Building Products Inc. (since 1998). Previously served as a director of R.H. Donnelley Inc. (2009 - 2010) and Adelphia Communications Inc. (2003 - 2007).

39

Basic Information About Management (continued)

Name, Address and Year of Birth	Current Position and Length of Service with the Company	Principal Occupation and Other Directorships During Past Five Years
Robert B. Calhoun, Jr. Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1942)	Director since 1998	Principal Occupation: Senior Advisor of Monitor Clipper Partners, a private equity investment fund (since 1997); President of Clipper Asset Management Corp. (1991 - 2009). Other Directorships: Previously served as a director of Avondale, Inc. (1991 - 2005) and Interstate Bakeries Corp. (1991 - 2008).
Evelyn E. Guernsey Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1955)	Director since 2011	Principal Occupation: CEO, Americas of J.P. Morgan Asset Management (2004 - 2010). Other Directorships: None.
Julie A. Hill Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1946)	Director since 2004	Principal Occupation: Owner and CEO of The Hill Company, a business consulting firm (since 1998). Other Directorships: Currently serves as director of WellPoint, Inc., a health benefits company (since 1994). Previously served as a director of Resources Connection, Inc., a consulting firm (2004 - 2007).
Franklin W. Hobbs Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1947)	Director since 2001	Principal Occupation: Advisor of One Equity Partners, a private equity firm (since 2004). Other Directorships: Currently serves as a director and Chairman of the Board of Ally Financial 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	Principal Occupation: Chairman of Spencer Stuart (U.S.), an executive search consulting firm (since 1996). Other Directorships: Currently serves as director of Ace, Ltd. (since 1997). Previously served as a director of Hewitt Associates, Inc. (2004 - 2010).
James L.L. Tullis Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1947)	Director since 2006	Principal Occupation: CEO of Tullis-Dickerson and Co. Inc., a venture capital management firm (since 1990). Other Directorships: Currently serves as director of Crane Co. (since 1998). Previously served as a director of Viacell Inc. (2003 - 2007).

40

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 also may be officers of the other Lord Abbett-sponsored funds and maintain offices at 90 Hudson Street, Jersey City, NJ 07302. Unless otherwise indicated, the position(s) and title(s) listed under the “Principal Occupation” column indicate each officer’s position(s) and title(s) with Lord Abbett.

Name and Year of Birth	Current Position with the 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 of Lord Abbett (since 2007), and was formerly Managing Partner (1996 - 2007) and Chief Investment Officer (1995 - 2007), joined Lord Abbett in 1972.
Daria L. Foster (1954)	President	Elected in 2006	Managing Partner of Lord Abbett (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.
Robert A. Lee (1969)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 1997.
Vincent J. McBride (1964)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 2003.
Andrew H. O’Brien (1973)	Executive Vice President	Elected in 2010	Partner and Portfolio Manager, joined Lord Abbett in 1998.
F. Thomas O’Halloran, III (1955)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 2001.

41

Basic Information About Management (continued)

Name and Year of Birth	Current Position with the Company	Length of Service of Current Position	Principal Occupation During Past Five Years
Harold E. Sharon (1960)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 2003.
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.
A. Edward Allinson (1961)	Vice President	Elected in 2011	Portfolio Manager, joined Lord Abbett in 2005.
Sean J. Aurigemma (1969)	Vice President	Elected in 2010	Portfolio Manager, joined Lord Abbett in 2007 and was formerly a Managing Director and Portfolio Manager at Morgan Stanley (1999 - 2007).
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.
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	Partner and Director, joined Lord Abbett in 2001.

42

Basic Information About Management (continued)

Name and Year of Birth	Current Position with the Company	Length of Service of Current Position	Principal Occupation During Past Five Years
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).
Thomas B. Maher (1967)	Vice President	Elected in 2010	Partner and Portfolio Manager, joined Lord Abbett in 2003.
Justin C. Maurer (1969)	Vice President	Elected in 2010	Partner and Portfolio Manager, joined Lord Abbett in 2001.
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	Partner and Senior Deputy General Counsel, joined Lord Abbett in 2007 and was formerly an Executive Vice President and the General Counsel at Cohen & Steers Capital Management, Inc. (1999 - 2007).
Francis T. Timons (1969)	Vice President	Elected in 2010	Portfolio Manager, joined Lord Abbett in 2007 and was formerly a Research Analyst at Robert W. Baird & Co. (2004 - 2007).

43

Basic Information About Management (concluded)

Name and Year of Birth	Current Position with the Company	Length of Service of Current Position	Principal Occupation During Past Five Years
Arthur K. Weise (1970)	Vice President	Elected in 2010	Portfolio Manager, joined Lord Abbett in 2007 and was formerly a Managing Director, Portfolio Manager and Analyst at Bank of New York Institutional Asset Management (2005 - 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.

44

Approval of Advisory Contract

At meetings held on December 15 and 16, 2010, 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, including information about the investment performance of the Fund compared to the performance of its benchmark, 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 the results of the examination of the portfolio management team by members of the Contract Committee during the year, which included a meeting with the portfolio management team. Additionally, the Board took into consideration its familiarity with Lord Abbett gained through its previous meetings and discussions during the course of the year.

The materials received by the Board included, but were not limited to: (1) information provided by Lipper Inc. (“Lipper”) regarding the investment performance of the Fund compared to the investment performance of one or more groups of funds with substantially similar investment objectives, including a group of funds within the same investment classification/objective (each group a “performance universe”) and to the investment performance of an appropriate fund index; (2) information on the expense ratios, effective management fee rates, and other expense components for the Fund and similar funds (the “peer group”); (3) information provided by Lord Abbett on the projected expense ratios, management fee rates, and other expense components for the Fund; (4) sales and redemption information for the Fund; (5) information regarding Lord Abbett’s financial condition; (6) an analysis of the relative profitability of the management agreement to Lord Abbett; (7) information provided by Lord Abbett regarding the investment management fees Lord Abbett receives from its other advisory clients maintaining accounts with a similar investment strategy as the Fund; (8) information regarding the distribution arrangements of the Fund; and (9) 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 previously had 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 noted that the Fund tended to invest to a greater degree in below investment grade fixed income securities and mid-cap value equity securities than most of its competitors. The Board observed that the investment performance of the Fund was in the second quintile of its performance universe for the nine-month and three-year periods, the first quintile for the one-year period, and the third quintile for the five-year period. The Board also observed that the investment performance was higher than of the Lipper Variable Underlying Funds Mixed-Asset Target Allocation Growth Index for each of those periods.

45

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 noted that in 2009 one of the Fund’s portfolio managers, Howard Hansen, had left Lord Abbett, with Christopher J. Towle continuing as a portfolio manager for the Fund, assisted by Daniel H. Frascarelli and Todor Petrov. 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 observed that for the fiscal year ended December 31, 2009 the contractual management and administrative services fees were approximately five basis points above the median of the peer group and the actual management and administrative services fees were approximately two basis points below the median of the peer group. The Board observed that for the fiscal year ended December 31, 2009 the total expense ratio of the Fund was approximately five basis points above the median of the peer group. The Board noted that effective May 1, 2010 it and Lord Abbett had entered into an expense limitation agreement that had the effect of limiting the total expense ratio to 1.15% of average daily net assets, that Lord Abbett proposed to renew the agreement through April 30, 2012, and that this expense ratio was the same as that in the peer group comparison. 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 increased in its 2010 fiscal year. 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.

46

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.

47

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

51.19% of the ordinary income distributions paid by the Fund during the year is qualified dividend income.

For corporate shareholders, 48.87% of the ordinary income distributions is qualified for the dividends received deduction.

48

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.

Capital Structure Portfolio

SFCS-PORT-2-1210

(02/11)

2010

LORD ABBETT

ANNUAL

REPORT    

Lord Abbett

Series Fund—Classic Stock Portfolio*

For the fiscal year ended December 31, 2010

* Formerly known as Large Cap Core Portfolio

Lord Abbett Series Fund — Classic Stock Portfolio (formerly Large Cap Core Portfolio)

Annual Report

For the fiscal year ended December 31, 2010

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 performance of the Lord Abbett Series Fund — Classic Stock Portfolio for the fiscal year ended December 31, 2010. 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

For the fiscal year ended December 31, 2010, the Fund returned 14.12%, reflecting performance at the net asset value (NAV) of Class VC shares, with all distributions reinvested, compared to its benchmark, the Russell 1000^® Index,¹ which returned 16.10% over the same period.

The broad market generally advanced during the beginning of 2010, peaking in April. It then entered a period of dramatic uncertainty during the summer, and rallied strongly in the fourth quarter. Economic data are improving, and we expect growth to continue in 2011. We continue to invest in companies that we believe are positioned for strong revenue and earnings growth.

The Fund’s relative performance was hampered most by stock selection within the health care sector. Shares of biopharmaceutical company Human Genome Sciences, Inc. suffered as a consequence of investor doubts over the company’s experimental lupus drug after the Food and Drug Administration announced a delay of approval. Weak stock selection within the information technology sector, along with

1

our relative overweight, also detracted from Fund performance. Shares of Adobe Systems Inc., a software company, tumbled after the company reported weakening sales and a disappointing outlook. Negative stock selection within the financials sector also hampered relative Fund performance. Bank of America Corp., a financial holdings company, was hurt by concerns over financial regulation and global uncertainty related to the exposure of European banks to sovereign debt.

The largest contributor to Fund performance during this period was positive stock selection in, along with a relative overweight to, the strong performing consumer discretionary sector. Casino resort Wynn Resorts, Inc. saw strong growth in its Macau property, coupled with a modest recovery in Las Vegas. Shares of Dick’s Sporting Goods, a seller of sports equipment, rose on same-store sales and stronger than expected third quarter earnings. Positive stock selection within the industrials sector also contributed to the Fund’s performance. Shares of Union Pacific Corp., a railroad operator, benefited from a recovery in business volume, as well as higher revenue.

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 Russell 1000^® Index measures the performance of the 1,000 largest companies in the Russell 3000^® Index, which represents approximately 90% of the total market capitalization of the Russell 3000^® Index.

Unless otherwise specified, the index reflects total return, with all dividends reinvested. The index is unmanaged, does not reflect the deduction of fees or expenses, and is not available for direct investment.

Important Performance and Other Information

Performance data quoted in the following pages reflect past performance and are no guarantee of future results. Current performance may be higher or lower than the performance quoted. The investment return and principal value of an investment in 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, 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 above are as of December 31, 2010; 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.

2

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 or 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, 2010

	1 Year		5 Years		Life of Class
Class VC2		14.12%		4.23%		5.28%

¹    Performance for each unmanaged index does not reflect any fees or expenses. The performance of each index is not necessarily representative of the Fund’s performance. Performance for each index began on April 29, 2005.

²    The Class VC shares commenced operations and performance for the Class began on April 29, 2005.

3

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, 2010 through December 31, 2010).

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 7/1/10 – 12/31/10” 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.

4

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†
	7/1/10		12/31/10		7/1/10 - 12/31/10
Class VC
Actual	$	1,000.00	$	1,252.30	$	5.39
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.43	$	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, 2010

Sector*	%**
Consumer Discretionary		14.71%
Consumer Staples		5.47%
Energy		11.41%
Financials		17.32%
Health Care		8.24%
Industrials		10.70%
Information Technology		17.44%
Materials		8.95%
Telecommunication Services		1.77%
Utilities		1.08%
Short-Term Investment		2.91%
Total		100.00%

* A sector may comprise several industries.

** Represents percent of total investments.

5

Schedule of Investments

December 31, 2010

Investments	Shares		Value (000)
COMMON STOCKS 97.33%
Aerospace & Defense 2.55%
Boeing Co. (The)		309	$	20
Goodrich Corp.		2,233		197
Honeywell International, Inc.		3,929		209
Precision Castparts Corp.		1,588		221
United Technologies Corp.		3,245		255
Total				902
Airlines 0.40%
AMR Corp.*		18,375		143
Automobiles 0.47%
General Motors Co.*		4,483		165
Beverages 2.15%
Coca-Cola Co. (The)		5,562		366
PepsiCo, Inc.		6,043		395
Total				761
Biotechnology 2.45%
Amgen, Inc.*		6,703		368
Celgene Corp.*		2,620		155
Gilead Sciences, Inc.*		1,818		66
Human Genome Sciences, Inc.*		8,912		213
Vertex Pharmaceuticals, Inc.*		1,788		63
Total				865
Capital Markets 4.57%
Bank of New York Mellon Corp. (The)		3,175		96
Franklin Resources, Inc.		471		52
Goldman Sachs Group, Inc. (The)		4,030		678
Morgan Stanley		11,577		315
State Street Corp.		4,020		186
T. Rowe Price Group, Inc.		4,446		287
Total				1,614

Investments	Shares		Value (000)
Chemicals 5.77%
Albemarle Corp.		3,041	$	170
Celanese Corp. Series A		4,788		197
CF Industries Holdings, Inc.		1,136		154
Dow Chemical Co. (The)		10,569		361
E.I. du Pont de Nemours & Co.		3,311		165
LyondellBasell Industries NV Class A (Netherlands)*(a)		3,377		116
Monsanto Co.		5,054		352
Mosaic Co. (The)		979		75
Potash Corp. of Saskatchewan, Inc. (Canada)(a)		2,895		448
Total				2,038
Commercial Banks 4.82%
Fifth Third Bancorp		21,178		311
PNC Financial Services Group, Inc. (The)		4,432		269
Regions Financial Corp.		25,008		175
SunTrust Banks, Inc.		5,623		166
U.S. Bancorp		9,947		268
Wells Fargo & Co.		16,589		514
Total				1,703
Communications Equipment 1.86%
Cisco Systems, Inc.*		8,860		179
QUALCOMM, Inc.		9,662		478
Total				657
Computers & Peripherals 5.64%
Apple, Inc.*		3,862		1,246
Dell, Inc.*		21,044		285
EMC Corp.*		7,267		166
Hewlett-Packard Co.		5,612		236
SMART Technologies, Inc. Class A (Canada)*(a)		6,237		59
Total				1,992
Consumer Finance 0.92%
Capital One Financial Corp.		7,637		325

See Notes to Financial Statements.

6

Schedule of Investments (continued)

December 31, 2010

Investments	Shares		Value (000)
Diversified Financial Services 4.78%
Bank of America Corp.		50,147	$	669
Citigroup, Inc.*		64,780		306
JPMorgan Chase & Co.		16,820		714
Total				1,689
Diversified Telecommunication Services 1.77%
AT&T, Inc.		10,732		315
CenturyLink, Inc.		4,111		190
Verizon Communications, Inc.		3,355		120
Total				625
Electric: Utilities 0.47%
NextEra Energy, Inc.		1,773		92
Progress Energy, Inc.		1,692		74
Total				166
Electrical Equipment 0.72%
Emerson Electric Co.		4,471		256
Electronic Equipment, Instruments & Components 0.80%
Corning, Inc.		7,264		140
Dolby Laboratories, Inc. Class A*		2,119		141
Total				281
Energy Equipment & Services 3.04%
Schlumberger Ltd.		10,839		905
Weatherford International Ltd. (Switzerland)*(a)		7,438		170
Total				1,075
Food & Staples Retailing 0.84%
CVS Caremark Corp.		5,377		187
Wal-Mart Stores, Inc.		2,022		109
Total				296
Food Products 0.60%
Kellogg Co.		1,490		76
Kraft Foods, Inc. Class A		4,344		137
Total				213

Investments	Shares		Value (000)
Health Care Equipment & Supplies 0.49%
Baxter International, Inc.		3,444	$	174
Health Care Providers & Services 1.79%
Express Scripts, Inc.*		7,756		419
Medco Health Solutions, Inc.*		3,507		215
Total				634
Health Care Technology 0.04%
athenahealth, Inc.*		336		14
Hotels, Restaurants & Leisure 6.95%
Boyd Gaming Corp.*		5,532		59
Carnival Corp. Unit		9,300		429
Darden Restaurants, Inc.		2,464		114
Hyatt Hotels Corp. Class A*		3,969		182
Marriott International, Inc. Class A		13,555		563
MGM Resorts International*		23,346		347
Royal Caribbean Cruises Ltd.*		2,308		108
Starwood Hotels & Resorts Worldwide, Inc.		5,093		310
Wynn Resorts Ltd.		3,308		344
Total				2,456
Household Products 1.64%
Colgate-Palmolive Co.		1,473		118
Procter & Gamble Co. (The)		7,182		462
Total				580
Industrial Conglomerates 1.15%
General Electric Co.		22,256		407
Information Technology Services 0.26%
MasterCard, Inc. Class A		406		91
Insurance 1.42%
MetLife, Inc.		5,545		246
Prudential Financial, Inc.		4,348		255
Total				501

See Notes to Financial Statements.

7

Schedule of Investments (continued)

December 31, 2010

Investments	Shares		Value (000)
Internet & Catalog Retail 0.12%
Amazon.com, Inc.*		225	$	41
Internet Software & Services 1.97%
Akamai Technologies, Inc.*		267		13
Google, Inc. Class A*		1,154		685
Total				698
Machinery 2.38%
Dover Corp.		1,788		105
Eaton Corp.		2,241		227
PACCAR, Inc.		4,915		282
Parker Hannifin Corp.		2,653		229
Total				843
Media 2.32%
Interpublic Group of Cos., Inc. (The)*		29,701		315
Time Warner, Inc.		5,946		191
Walt Disney Co. (The)		8,408		315
Total				821
Metals & Mining 3.21%
Barrick Gold Corp. (Canada)(a)		3,128		166
Freeport-McMoRan Copper & Gold, Inc.		2,993		360
Newmont Mining Corp.		3,571		219
Reliance Steel & Aluminum Co.		2,100		107
United States Steel Corp.		4,823		282
Total				1,134
Multi-Line Retail 2.98%
J.C. Penney Co., Inc.		5,909		191
Kohl’s Corp.*		3,526		192
Macy’s, Inc.		6,711		170
Target Corp.		8,335		501
Total				1,054
Multi-Utilities 0.61%
Dominion Resources, Inc.		2,505		107
PG&E Corp.		2,250		108
Total				215

Investments	Shares		Value (000)
Oil, Gas & Consumable Fuels 8.40%
Apache Corp.		2,234	$	266
BP plc ADR		1,124		50
Chevron Corp.		3,659		334
Continental Resources, Inc.*		2,370		140
Devon Energy Corp.		2,088		164
EOG Resources, Inc.		1,757		161
Exxon Mobil Corp.		7,530		551
Hess Corp.		6,250		478
Marathon Oil Corp.		1,002		37
Occidental Petroleum Corp.		2,478		243
Petrohawk Energy Corp.*		2,355		43
Range Resources Corp.		1,097		49
Southwestern Energy Co.*		2,468		92
Suncor Energy, Inc. (Canada)(a)		9,438		361
Total				2,969
Pharmaceuticals 3.49%
Abbott Laboratories		4,045		194
Johnson & Johnson		6,901		427
Merck & Co., Inc.		4,535		163
Pfizer, Inc.		25,659		449
Total				1,233
Professional Services 1.37%
Monster Worldwide, Inc.*		20,525		485
Real Estate Investment Trusts 0.86%
Host Hotels & Resorts, Inc.		16,953		303
Road & Rail 2.14%
Hertz Global Holdings, Inc.*		13,232		192
Union Pacific Corp.		6,093		565
Total				757
Semiconductors & Semiconductor Equipment 2.45%
Broadcom Corp. Class A		3,389		148
Intel Corp.		17,123		360
Micron Technology, Inc.*		25,303		203

See Notes to Financial Statements.

8

Schedule of Investments (concluded)

December 31, 2010

Investments	Shares		Value (000)
Semiconductors & Semiconductor Equipment (continued)
Texas Instruments, Inc.		4,813	$	156
Total				867
Software 4.51%
Activision Blizzard, Inc.		27,410		341
Adobe Systems, Inc.*		10,756		331
Microsoft Corp.		9,481		265
Oracle Corp.		8,879		278
VMware, Inc. Class A*		4,257		378
Total				1,593
Specialty Retail 1.91%
Best Buy Co., Inc.		1,775		61
Dick’s Sporting Goods, Inc.*		13,561		509
Home Depot, Inc. (The)		3,034		106
Total				676
Tobacco 0.25%
Altria Group, Inc.		3,625		89
Total Common Stocks (cost $27,446,588)				34,401

Investments	Principal Amount (000)		Value (000)
SHORT-TERM INVESTMENT 2.92%
Repurchase Agreement
Repurchase Agreement dated 12/31/2010, 0.04% due 1/3/2011 with Fixed Income Clearing Corp. collateralized by $970,000 of Federal National Mortgage Assoc. at 4.625% due 5/1/2013; value: $1,053,663; proceeds: $1,031,935 (cost $1,031,931)	$	1,032	$	1,032
Total Investments in Securities 100.25% (cost $28,478,519)				35,433
Liabilities in Excess of Other Assets (0.25%)				(87	)
Net Assets 100.00%			$	35,346

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.

9

Statement of Assets and Liabilities

December 31, 2010

ASSETS:
Investments in securities, at value (cost $28,478,519)	$	35,433,231
Receivables:
Capital shares sold		34,628
Interest and dividends		27,736
From advisor (See Note 3)		9,671
Prepaid expenses		300
Total assets		35,505,566
LIABILITIES:
Payables:
Investment securities purchased		64,020
Management fee		20,543
Capital shares reacquired		2,270
Directors’ fees		1,644
Fund administration		1,174
Accrued expenses and other liabilities		69,469
Total liabilities		159,120
NET ASSETS	$	35,346,446
COMPOSITION OF NET ASSETS:
Paid-in capital	$	31,441,909
Distributions in excess of net investment income		(1,644	)
Accumulated net realized loss on investments and foreign currency related transactions		(3,048,531	)
Net unrealized appreciation on investments		6,954,712
Net Assets	$	35,346,446
Outstanding shares (50 million shares of common stock authorized, $.001 par value)		2,874,684
Net asset value, offering and redemption price per share (Net assets divided by outstanding shares)		$12.30

See Notes to Financial Statements.

10

Statement of Operations

For the Year Ended December 31, 2010

Investment income:
Dividends (net of foreign withholding taxes of $803)	$	427,094
Interest		155
Total investment income		427,249
Expenses:
Management fee		216,000
Shareholder servicing		115,669
Professional		37,170
Reports to shareholders		19,073
Fund administration		12,343
Custody		3,123
Directors’ fees		1,226
Other		994
Gross expenses		405,598
Expense reductions (See Note 7)		(41	)
Management fee waived (See Note 3)		(112,414	)
Net expenses		293,143
Net investment income		134,106
Net realized and unrealized gain:
Net realized gain on investments		480,924
Net change in unrealized appreciation/depreciation on investments		3,755,984
Net realized and unrealized gain		4,236,908
Net Increase in Net Assets Resulting From Operations	$	4,371,014

See Notes to Financial Statements.

11

Statements of Changes in Net Assets

INCREASE IN NET ASSETS	For the Year Ended December 31, 2010			For the Year Ended December 31, 2009
Operations:
Net investment income	$	134,106		$	199,064
Net realized gain (loss) on investments		480,924			(2,347,935	)
Net change in unrealized appreciation/depreciation on investments		3,755,984			8,189,095
Net increase in net assets resulting from operations		4,371,014			6,040,224
Distributions to shareholders from:
Net investment income		(135,603	)		(199,870	)
Capital share transactions (See Note 10):
Proceeds from sales of shares		7,047,781			9,806,047
Reinvestment of distributions		135,603			199,870
Cost of shares reacquired		(5,345,554	)		(6,044,020	)
Net increase in net assets resulting from capital share transactions		1,837,830			3,961,897
Net increase in net assets		6,073,241			9,802,251
NET ASSETS:
Beginning of year	$	29,273,205		$	19,470,954
End of year	$	35,346,446		$	29,273,205
Distributions in excess of investment income	$	(1,644	)	$	(573	)

See Notes to Financial Statements.

12

Financial Highlights

	Year Ended 12/31
	2010			2009			2008			2007			2006
Per Share Operating Performance
Net asset value, beginning of year		$10.82			$  8.68			$12.89			$12.14			$10.86
Investment operations:
Net investment income(a)		.05			.08			.12			.09			.10
Net realized and unrealized gain (loss)		1.48			2.13			(4.16	)		1.21			1.30
Total from investment operations		1.53			2.21			(4.04	)		1.30			1.40
Distributions to shareholders from:
Net investment income		(.05	)		(.07	)		(.10	)		(.08	)		(.07	)
Net realized gain		–			–			(.07	)		(.47	)		(.05	)
Total distributions		(.05	)		(.07	)		(.17	)		(.55	)		(.12	)
Net asset value, end of year		$12.30			$10.82			$  8.68			$12.89			$12.14
Total Return(b)		14.12	%		25.50	%		(31.28	)%		10.68	%		12.91	%
Ratios to Average Net Assets:
Expenses, excluding expense reductions and including management fee waived and expenses reimbursed		.95	%		.99	%		1.10	%		1.10	%		1.10	%
Expenses, including expense reductions, management fee waived and expenses reimbursed		.95	%		.99	%		1.10	%		1.10	%		1.10	%
Expenses, excluding expense reductions, management fee waived and expenses reimbursed		1.31	%		1.49	%		1.49	%		1.45	%		1.91	%
Net investment income		.43	%		.82	%		1.08	%		.72	%		.89	%
Supplemental Data:
Net assets, end of year (000)		$35,346			$29,273			$19,471			$21,199			$13,743
Portfolio turnover rate		21.65	%		54.63	%		40.08	%		42.46	%		34.27	%

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

^(b) Total return does not consider the effects of sales charges or other expenses imposed by an insurance company and assumes the reinvestment of all distributions.

See Notes to Financial Statements.

13

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 and was incorporated under Maryland law in 1989. The Company consists of twelve separate portfolios (the “Funds”). This report covers Classic Stock Portfolio (the “Fund” formerly, Large-Cap Core Portfolio). Effective May 1, 2010, Large-Cap Core Portfolio changed its name to Classic Stock Portfolio. 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 has 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 the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

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 fair value.

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

(c) Investment Income–Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis as earned. Discounts are accreted and premiums are amortized using the effective interest method and are included in Interest income in the Statement of Operations. 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.

14

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, 2007 through December 31, 2010. 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 gain on investments 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, the Fund may incur a loss upon disposition of the securities.

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

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

15

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, 2010 in valuing the Fund’s investments carried at value:

Investment Type*	Level 1 (000)		Level 2 (000)		Level 3 (000)		Total (000)
Common Stocks	$	34,401	$	–	$	–	$	34,401
Repurchase Agreement		–		1,032		–		1,032
Total	$	34,401	$	1,032	$	–	$	35,433

* 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 rate:

First $1 billion	.70%
Next $1 billion	.65%
Over $2 billion	.60%

For the fiscal year ended December 31, 2010, the effective management fee, net of waivers, was at an annualized rate of .34% of the Fund’s average daily net assets.

In addition, Lord Abbett provides certain administrative services to the Fund pursuant to an Administrative Services Agreement in return for a fee at an annual rate of .04% of the Fund’s average daily net assets.

For the period January 1, 2010 through April 30, 2010, Lord Abbett voluntarily agreed to waive all or a portion of its management fee and, if necessary, reimburse the Fund’s other expenses to the extent necessary so that total net annual operating expenses did not exceed an annualized rate of .95%.

For the period May 1, 2010 through April 30, 2011, Lord Abbett has contractually agreed to continue such waivers under the same terms. This agreement may be terminated only upon the approval of the Fund’s Board of Directors.

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

16

Notes to Financial Statements (continued)

and other entities for providing recordkeeping, sub-transfer agency and other administrative services to the Fund. For the fiscal year ended December 31, 2010, the Fund incurred expenses of $108,000 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 semi-annually. Taxable net realized gains from investment transactions, reduced by allowable capital loss carryforwards, if any, are declared and distributed to shareholders at least annually. The capital loss carryforward amount, if any, is available to offset future net capital gains. Dividends and distributions to shareholders are recorded on the ex-dividend date. The amounts of dividends and distributions from net investment income and net realized capital gains are determined in accordance with federal income tax regulations, which may differ from accounting principles generally accepted in the United States of America. These book/tax differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the components of net assets based on their federal tax basis treatment; temporary differences do not require reclassification. Dividends and distributions, which exceed earnings and profits for tax purposes, are reported as a tax return of capital.

The tax character of distributions paid during the fiscal years ended December 31, 2010 and 2009 was as follows:

	Year Ended 12/31/2010		Year Ended 12/31/2009
Distributions paid from:
Ordinary income	$	135,603	$	199,870
Total distributions paid	$	135,603	$	199,870

As of December 31, 2010, the components of accumulated gains on a tax-basis were as follows:

Capital loss carryforwards*	$	(2,447,165	)
Temporary differences		(1,644	)
Unrealized gains – net		6,353,346
Total accumulated gains – net	$	3,904,537

* As of December 31, 2010, the capital loss carryforwards, along with the related expiration dates, were as follows:

2016		2017		Total
	$522,322	$	1,924,843	$	2,447,165

As of December 31, 2010, the aggregate unrealized security gains and losses based on cost for U.S. federal income tax purposes were as follows:

Tax cost	$	29,079,885
Gross unrealized gain		6,801,264
Gross unrealized loss		(447,918	)
Net unrealized security gain	$	6,353,346

17

Notes to Financial Statements (continued)

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, 2010 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
$426	$	(39	)	$	(387	)

The permanent differences are attributable to the tax treatment of certain distributions paid and foreign currency transactions.

On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the “Modernization Act”) was signed by the President. The Modernization Act includes numerous provisions that generally become effective for taxable years beginning after the date of enactment. Management is currently assessing the impact of the Modernization Act as it relates to the Fund.

5.    PORTFOLIO SECURITIES TRANSACTIONS

Purchases and sales of investment securities (excluding short-term investments) for the fiscal year ended December 31, 2010 were as follows:

Purchases		Sales
	$7,996,304	$	6,468,068

There were no purchases or sales of U.S. Government securities for the fiscal year ended December 31, 2010.

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 an arrangement with its transfer agent and custodian, whereby credits realized as a result of uninvested cash balances are used to reduce a portion of 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.

18

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 the Fund’s exposure to foreign companies (and ADRs), 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, 2010			Year Ended December 31, 2009
Shares sold		643,063			1,063,360
Reinvestment of distributions		11,041			18,387
Shares reacquired		(485,228	)		(618,425	)
Increase		168,876			463,322

19

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 of Classic Stock Portfolio (formerly known as Large-Cap Core Portfolio), one of the portfolios constituting the Lord Abbett Series Fund, Inc. (the “Company”), including the schedule of investments, as of December 31, 2010, 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, 2010, 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 Classic Stock Portfolio (formerly known as Large-Cap Core Portfolio) of the Lord Abbett Series Fund, Inc. as of December 31, 2010, 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 15, 2011

20

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 the investment adviser provides, and annually considers whether to renew the contract with the adviser. Generally, each Director holds office until his/her successor is elected and qualified or until his/her earlier resignation or removal, as provided in the Company’s organizational documents.

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

Interested Directors

The following Directors are associated with Lord Abbett and are “interested persons” of the Company as defined in the Act. Mr. Dow and Ms. Foster are officers and directors or trustees of each of the 13 Lord Abbett-sponsored funds, which consist of 53 portfolios or series.

Name, Address and Year of Birth	Current Position and Length of Service with the Company	Principal Occupation and Other Directorships During Past Five Years
Robert S. Dow Lord, Abbett & Co. LLC 90 Hudson Street Jersey City, NJ 07302 (1945)	Director since 1995 and Chairman since 1996	Principal Occupation: Senior Partner of Lord Abbett (since 2007) and was formerly Managing Partner (1996 - 2007) and Chief Investment Officer (1995 - 2007), joined Lord Abbett in 1972. Other Directorships: None.
Daria L. Foster Lord, Abbett & Co. LLC 90 Hudson Street Jersey City, NJ 07302 (1954)	Director and President since 2006	Principal Occupation: Managing Partner of Lord Abbett (since 2007), and was formerly Director of Marketing and Client Service, joined Lord Abbett in 1990. Other Directorships: None.

Independent Directors

The following Independent Directors also are directors or trustees of each of the 13 Lord Abbett-sponsored funds, which consist of 53 portfolios or series.

Name, Address and Year of Birth	Current Position and Length of Service with the Company	Principal Occupation and Other Directorships During Past Five Years
E. Thayer Bigelow Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1941)	Director since 1994	Principal Occupation: Managing General Partner, Bigelow Media, LLC (since 2000); Senior Adviser, Time Warner Inc. (1998 - 2000). Other Directorships: Currently serves as director of Crane Co. (since 1984) and Huttig Building Products Inc. (since 1998). Previously served as a director of R.H. Donnelley Inc. (2009 - 2010) and Adelphia Communications Inc. (2003 - 2007).

21

Basic Information About Management (continued)

Name, Address and Year of Birth	Current Position and Length of Service with the Company	Principal Occupation and Other Directorships During Past Five Years
Robert B. Calhoun, Jr. Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1942)	Director since 1998	Principal Occupation: Senior Advisor of Monitor Clipper Partners, a private equity investment fund (since 1997); President of Clipper Asset Management Corp. (1991 - 2009). Other Directorships: Previously served as a director of Avondale, Inc. (1991 - 2005) and Interstate Bakeries Corp. (1991 - 2008).
Evelyn E. Guernsey Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1955)	Director since 2011	Principal Occupation: CEO, Americas of J.P. Morgan Asset Management (2004 - 2010). Other Directorships: None.
Julie A. Hill Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1946)	Director since 2004	Principal Occupation: Owner and CEO of The Hill Company, a business consulting firm (since 1998). Other Directorships: Currently serves as director of WellPoint, Inc., a health benefits company (since 1994). Previously served as a director of Resources Connection, Inc., a consulting firm (2004 - 2007).
Franklin W. Hobbs Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1947)	Director since 2001	Principal Occupation: Advisor of One Equity Partners, a private equity firm (since 2004). Other Directorships: Currently serves as a director and Chairman of the Board of Ally Financial 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	Principal Occupation: Chairman of Spencer Stuart (U.S.), an executive search consulting firm (since 1996). Other Directorships: Currently serves as director of Ace, Ltd. (since 1997). Previously served as a director of Hewitt Associates, Inc. (2004 - 2010).
James L.L. Tullis Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1947)	Director since 2006	Principal Occupation: CEO of Tullis-Dickerson and Co. Inc., a venture capital management firm (since 1990). Other Directorships: Currently serves as director of Crane Co. (since 1998). Previously served as a director of Viacell Inc. (2003 - 2007).

22

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 also may be officers of the other Lord Abbett-sponsored funds and maintain offices at 90 Hudson Street, Jersey City, NJ 07302. Unless otherwise indicated, the position(s) and title(s) listed under the “Principal Occupation” column indicate each officer’s position(s) and title(s) with Lord Abbett.

Name and Year of Birth	Current Position with the 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 of Lord Abbett (since 2007), and was formerly Managing Partner (1996 - 2007) and Chief Investment Officer (1995 - 2007), joined Lord Abbett in 1972.
Daria L. Foster (1954)	President	Elected in 2006	Managing Partner of Lord Abbett (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.
Robert A. Lee (1969)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 1997.
Vincent J. McBride (1964)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 2003.
Andrew H. O’Brien (1973)	Executive Vice President	Elected in 2010	Partner and Portfolio Manager, joined Lord Abbett in 1998.
F. Thomas O’Halloran, III (1955)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 2001.

23

Basic Information About Management (continued)

Name and Year of Birth	Current Position with the Company	Length of Service of Current Position	Principal Occupation During Past Five Years
Harold E. Sharon (1960)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 2003.
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.
A. Edward Allinson (1961)	Vice President	Elected in 2011	Portfolio Manager, joined Lord Abbett in 2005.
Sean J. Aurigemma (1969)	Vice President	Elected in 2010	Portfolio Manager, joined Lord Abbett in 2007 and was formerly a Managing Director and Portfolio Manager at Morgan Stanley (1999 - 2007).
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.
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	Partner and Director, joined Lord Abbett in 2001.

24

Basic Information About Management (continued)

Name and Year of Birth	Current Position with the Company	Length of Service of Current Position	Principal Occupation During Past Five Years
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).
Thomas B. Maher (1967)	Vice President	Elected in 2010	Partner and Portfolio Manager, joined Lord Abbett in 2003.
Justin C. Maurer (1969)	Vice President	Elected in 2010	Partner and Portfolio Manager, joined Lord Abbett in 2001.
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	Partner and Senior Deputy General Counsel, joined Lord Abbett in 2007 and was formerly an Executive Vice President and the General Counsel at Cohen & Steers Capital Management, Inc. (1999 - 2007).
Francis T. Timons (1969)	Vice President	Elected in 2010	Portfolio Manager, joined Lord Abbett in 2007 and was formerly a Research Analyst at Robert W. Baird & Co. (2004 - 2007).

25

Basic Information About Management (concluded)

Name and Year of Birth	Current Position with the Company	Length of Service of Current Position	Principal Occupation During Past Five Years
Arthur K. Weise (1970)	Vice President	Elected in 2010	Portfolio Manager, joined Lord Abbett in 2007 and was formerly a Managing Director, Portfolio Manager and Analyst at Bank of New York Institutional Asset Management (2005 - 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 15 and 16, 2010, 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, including information about the investment performance of the Fund compared to the performance of its benchmark, 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 the results of the examination of the portfolio management team by members of the Contract Committee during the year, which included a meeting with the portfolio management team. Additionally, the Board took into consideration its familiarity with Lord Abbett gained through its previous meetings and discussions during the course of the year.

The materials received by the Board included, but were not limited to: (1) information provided by Lipper Inc. (“Lipper”) regarding the investment performance of the Fund compared to the investment performance of one or more groups of funds with substantially similar investment objectives, including a group of funds within the same investment classification/objective (each group a “performance universe”) and to the investment performance of an appropriate fund index; (2) information on the expense ratios, effective management fee rates, and other expense components for the Fund and similar funds (the “peer group”); (3) information provided by Lord Abbett on the projected expense ratios, management fee rates, and other expense components for the Fund; (4) sales and redemption information for the Fund; (5) information regarding Lord Abbett’s financial condition; (6) an analysis of the relative profitability of the management agreement to Lord Abbett; (7) information provided by Lord Abbett regarding the investment management fees Lord Abbett receives from its other advisory clients maintaining accounts with a similar investment strategy as the Fund; (8) information regarding the distribution arrangements of the Fund; and (9) 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 previously had 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 observed that the investment performance of the Fund was in the fifth quintile of its performance universe for the nine-month and one-year periods and the first quintile for the three-year and five-year periods. The Board also observed that the Fund’s investment performance was lower that of the Lipper Variable Underlying Funds Large-Cap Core Index for the nine-month and one-year periods and higher than that of the Index for the three-year and five-year periods. The Board also noted that the Fund’s investment

27

objective, strategy, and investment team were identical to those of 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 ten-year period and higher than that of the Lipper Large-Cap Core Index for those 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 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 observed that for the fiscal year ended December 31, 2009 the contractual management and administrative services fees were approximately five basis points above the median of the peer group and the actual management and administrative services fees were approximately thirty-eight basis points below the median of the peer group. The Board also observed that for the fiscal year ended December 31, 2009 the total expense ratio of the Fund was approximately twenty-three basis points below the median of the peer group. The Board noted that effective May 1, 2010 it and Lord Abbett had entered into an expense limitation agreement that had the effect of limiting the total expense ratio to 0.95% of average daily net assets and that Lord Abbett proposed to renew the agreement through April 30, 2012. The Board considered how that expense ratio would relate to the expense ratios 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 increased in its 2010 fiscal year. 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.

28

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

100% of the ordinary income distributions paid by the Fund during the year is qualified dividend income.

For corporate shareholders, 100% of ordinary income distributions is 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.

Classic Stock Portfolio

SFCLASS-PORT-2-1210

(02/11)

2010

LORD ABBETT

ANNUAL

REPORT    

Lord Abbett

Series Fund—Developing Growth Portfolio

For the fiscal period ended December 31, 2010

Lord Abbett Series Fund — Developing Growth Portfolio*

Annual Report

For the fiscal period ended December 31, 2010

*    The Fund commenced operations on April 23, 2010, and investment performance began on May 1, 2010.

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 performance of the Lord Abbett Series Fund — Developing Growth Portfolio for the period ended December 31, 2010. 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

For the eight-month period ended on December 31, 2010, the Fund returned 24.33%, reflecting performance at the net asset value (NAV) of Class VC shares, with all distributions reinvested, compared to its benchmark, the Russell 2000^® Growth Index,¹ which returned 15.12% over the same period.

The eight-month fiscal period was characterized by two distinct market environments. The first four months were driven by fears of a double-dip recession and concern about spillover of the European debt crisis. In late August 2010, Federal Reserve chairman Ben Bernanke spoke of further quantitative easing, and economic data firmed somewhat, allaying investor fears. Steadily improving readings on household income, industrial production, and home prices also contributed to a better market tone. Our focus on companies selling into expanding market niches enabled the Fund to perform well during both of these contrasting market environments. Overall, we were able to generate gains that exceeded the index by a comfortable margin.

1

The information technology sector was the Fund’s largest contributor to performance during the period. Shares of Netezza, a data warehouse service provider, rose following the announcement that the firm would be acquired by IBM. Acme Packet, which makes telecommunications devices, also gained as enterprises increasingly invested in upgrading their networks. The firm also enjoyed market share gains versus competitors.

The portfolio gained from strong stock selection within the consumer discretionary sector, where strong retail concepts benefited from the improved consumer outlook. Shares of Lululemon Athletica, a maker of yoga-inspired athletic wear, experienced strong growth in both retail and e-commerce divisions. Also performing well was Deckers Outdoor, maker of Uggs footwear, which generated strong sales from an expanded product line. Within the industrials sector, shares of Polypore International, a producer of specialized filters used in industrial applications and electronics, rose as the outlook for the firm’s lithium separator business remained strong.

The energy sector contributed positively to the portfolio’s overall return, but we underperformed the benchmark in this group. ION Geophysical declined on weakness in the seismic data sector in mid-2010. Shares of Clean Energy Fuels also experienced a decline, as the political uncertainty surrounding the Natural Gas Act has negatively affected the firm’s profit outlook. The Fund also underperformed its benchmark in the health care category, as shares of Thoratec, maker of the HeartMate II ventricular assist device, fell on competitive concerns. Acorda Therapeutics, producer of the Ampyra drug for multiple sclerosis, declined amid concerns over reimbursement risk and prescription growth. Also negatively affecting performance was American Public Education, an online provider of post-secondary education that succumbed to the onslaught of regulatory pressures facing the entire education industry.

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 Russell 2000^® Growth Index measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values.

Unless otherwise specified, the index reflects total return, with all dividends reinvested. The index is unmanaged, does not reflect the deduction of fees or expenses, and is not available for direct investment.

Important Performance and Other Information

Performance data quoted in the following pages reflect past performance and are no guarantee of future results. Current performance may be higher or lower than the performance quoted. The investment return and principal value of an investment in 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

2

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 shown, 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 above are as of December 31, 2010; 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 2000^® 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 the period, expenses of the Fund were waived or reimbursed by Lord Abbett; without such waiver or reimbursement of expenses, the Fund’s returns would have been lower. Past performance is no guarantee of future results.

Total Return for the Period Ended December 31, 2010

	Life of Class
Class VC2	24.33%*

¹    Performance for the unmanaged index does not reflect any fees or expenses. The performance of the index is not necessarily representative of the Fund’s performance. Performance for the index began on April 30, 2010.

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

*    Because Class VC shares have existed for less than one year, average annual returns are not provided.

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, 2010 through December 31, 2010).

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 7/1/10 – 12/31/10” 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†
	7/1/10		12/31/10		7/1/10 - 12/31/10
Class VC
Actual	$	1,000.00	$	1,382.40	$	5.40
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.68	$	4.58

^† Net expenses are equal to the Fund's annualized expense ratio of 0.90%, 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, 2010

Sector*	%**
Consumer Discretionary		19.05%
Energy		5.35%
Financials		10.37%
Health Care		17.25%
Industrials		12.39%
Information Technology		33.37%
Materials		2.22%
Total		100.00%

* A sector may comprise several industries.

** Represents percent of total investments

6

Schedule of Investments

December 31, 2010

Investments	Shares		Value
COMMON STOCKS 108.64%
Aerospace & Defense 3.20%
BE Aerospace, Inc.*		74	$	2,740
DigitalGlobe, Inc.*		41		1,300
HEICO Corp.		39		1,990
Hexcel Corp.*		92		1,664
Total				7,694
Auto Components 1.11%
Westport Innovations, Inc. (Canada)*(a)		144		2,667
Biotechnology 4.94%
Acorda Therapeutics, Inc.*		66		1,799
BioMarin Pharmaceutical, Inc.*		74		1,993
Cepheid, Inc.*		123		2,798
Human Genome Sciences, Inc.*		40		956
Incyte Corp. Ltd.*		134		2,219
Momenta Pharmaceuticals, Inc.*		45		674
Onyx Pharmaceuticals, Inc.*		39		1,438
Total				11,877
Capital Markets 4.60%
Affiliated Managers Group, Inc.*		27		2,679
Financial Engines, Inc.*		239		4,739
Noah Holdings Ltd. ADR*		118		2,307
OptionsXpress Holdings, Inc.		43		674
Stifel Financial Corp.*		11		682
Total				11,081
Chemicals 1.28%
Koppers Holdings, Inc.		1		36
Rockwood Holdings, Inc.*		51		1,995
STR Holdings, Inc.*		52		1,040
Total				3,071

Investments	Shares		Value
Commercial Banks 3.04%
Signature Bank*		56	$	2,800
SVB Financial Group*		50		2,653
Western Alliance Bancorp*		253		1,862
Total				7,315
Commercial Services & Supplies 2.56%
Corporate Executive Board Co. (The)		80		3,004
EnerNOC, Inc.*		10		239
Higher One Holdings, Inc.*		144		2,913
Total				6,156
Communications Equipment 3.60%
Acme Packet, Inc.*		58		3,083
Aruba Networks, Inc.*		128		2,673
Riverbed Technology, Inc.*		83		2,919
Total				8,675
Computers & Peripherals 1.24%
Fortinet, Inc.*		92		2,976
Consumer Finance 1.44%
Green Dot Corp. Class A*		61		3,461
Diversified Consumer Services 2.09%
Coinstar, Inc.*		39		2,201
K12, Inc.*		49		1,404
TAL Education Group ADR*		88		1,417
Total				5,022
Diversified Financial Services 1.50%
Portfolio Recovery Associates, Inc.*		48		3,610
Electrical Equipment 1.33%
American Superconductor Corp.*		44		1,258
Polypore International, Inc.*		17		692
Satcon Technology Corp.*		280		1,260
Total				3,210

See Notes to Financial Statements.

7

Schedule of Investments (continued)

December 31, 2010

Investments	Shares		Value
Electronic Equipment, Instruments & Components 4.63%
FARO Technologies, Inc.*		83	$	2,726
Hollysys Automation Technologies Ltd. (China)*(a)		112		1,698
IPG Photonics Corp.*		134		4,237
Maxwell Technologies, Inc.*		132		2,493
Total				11,154
Energy Equipment & Services 2.87%
CARBO Ceramics, Inc.		41		4,245
Complete Production Services, Inc.*		43		1,271
ION Geophysical Corp.*		165		1,399
Total				6,915
Health Care Equipment & Supplies 7.66%
Align Technology, Inc.*		67		1,309
DexCom, Inc.*		138		1,884
Endologix, Inc.*		397		2,839
HeartWare International, Inc.*		14		1,226
Insulet Corp.*		96		1,488
Masimo Corp.		23		669
NxStage Medical, Inc.*		165		4,105
Thoratec Corp.*		48		1,359
Volcano Corp.*		130		3,550
Total				18,429
Health Care Technology 2.80%
athenahealth, Inc.*		81		3,319
SXC Health Solutions Corp.*		80		3,429
Total				6,748
Hotels, Restaurants & Leisure 2.23%
BJ’s Restaurants, Inc.*		56		1,984
Chipotle Mexican Grill, Inc.*		10		2,127
WMS Industries, Inc.*		28		1,267
Total				5,378

Investments	Shares		Value
Household Durables 2.13%
iRobot Corp.*		80	$	1,990
Tempur-Pedic International, Inc.*		78		3,125
Total				5,115
Information Technology Services 2.96%
Camelot Information Systems, Inc. ADR*		13		311
hiSoft Technology International Ltd. ADR*		126		3,805
VeriFone Systems, Inc.*		78		3,008
Total				7,124
Internet & Catalog Retail 1.74%
E-Commerce China Dangdang, Inc. ADR*		112		3,032
Overstock.com, Inc.*		70		1,154
Total				4,186
Internet Software & Services 7.25%
Ancestry.com, Inc.*		96		2,719
Constant Contact, Inc.*		55		1,704
GSI Commerce, Inc.*		47		1,090
IntraLinks Holdings, Inc.*		133		2,488
Liquidity Services, Inc.*		23		323
LogMeIn, Inc.*		59		2,616
MercadoLibre, Inc. (Argentina)*(a)		19		1,266
OpenTable, Inc.*		44		3,101
Rackspace Hosting, Inc.*		68		2,136
Total				17,443
Life Sciences Tools & Services 1.26%
Pacific Biosciences of California, Inc.*		127		2,021
PAREXEL International Corp.*		48		1,019
Total				3,040

See Notes to Financial Statements.

8

Schedule of Investments (continued)

December 31, 2010

Investments	Shares		Value
Machinery 4.93%
Chart Industries, Inc.*		111	$	3,750
China Valves Technology, Inc. (China)*(a)		131		1,373
Middleby Corp. (The)*		46		3,883
RBC Bearings, Inc.*		73		2,853
Total				11,859
Media 1.17%
IMAX Corp. (Canada)*(a)		100		2,805
Metals & Mining 1.14%
Brush Engineered Materials, Inc.*		71		2,743
Oil, Gas & Consumable Fuels 2.94%
Kodiak Oil & Gas Corp.*		553		3,650
Oasis Petroleum, Inc.*		126		3,417
Total				7,067
Pharmaceuticals 2.08%
Auxilium Pharmaceuticals, Inc.*		8		169
Impax Laboratories, Inc.*		51		1,026
Salix Pharmaceuticals Ltd.*		81		3,804
Total				4,999
Professional Services 0.28%
Robert Half International, Inc.		22		673
Real Estate Management & Development 0.68%
Altisource Portfolio Solutions SA (Luxembourg)*(a)		57		1,636
Road & Rail 1.17%
Genesee & Wyoming, Inc. Class A*		53		2,806

Investments	Shares		Value
Semiconductors & Semiconductor Equipment 6.72%
Atheros Communications, Inc.*		91	$	3,269
Cavium Networks, Inc.*		72		2,713
Inphi Corp.*		108		2,170
JinkoSolar Holding Co., Ltd. ADR*		33		664
NetLogic Microsystems, Inc.*		104		3,267
SemiLEDs Corp. (Taiwan)*(a)		72		2,091
Trina Solar Ltd. ADR*		85		1,991
Total				16,165
Software 9.84%
ChinaCache International Holdings Ltd. ADR*		56		1,165
Concur Technologies, Inc.*		56		2,908
Longtop Financial Technologies Ltd. ADR*		36		1,302
NetSuite, Inc.*		60		1,500
RealPage, Inc.*		60		1,856
SS&C Technologies Holdings, Inc.*		126		2,584
SuccessFactors, Inc.*		112		3,244
Synchronoss Technologies, Inc.*		152		4,060
TIBCO Software, Inc.*		96		1,892
VanceInfo Technologies, Inc. ADR*		92		3,178
Total				23,689
Specialty Retail 4.14%
Dick’s Sporting Goods, Inc.*		89		3,338
Ulta Salon, Cosmetics & Fragrance, Inc.*		74		2,516
Vitamin Shoppe, Inc.*		71		2,388
Zumiez, Inc.*		64		1,720
Total				9,962
Textiles, Apparel & Luxury Goods 6.09%
Deckers Outdoor Corp.*		38		3,030
Fossil, Inc.*		29		2,044

See Notes to Financial Statements.

9

Schedule of Investments (concluded)

December 31, 2010

Investments	Shares		Value
Textiles, Apparel & Luxury Goods (continued)
lululemon athletica, Inc. (Canada)*(a)		68	$	4,652
Steven Madden Ltd.*		50		2,086
Under Armour, Inc. Class A*		52		2,852
Total				14,664
Total Common Stocks 108.64% (cost $218,362)				261,415
Liabilities in Excess of Cash and Other Assets (8.64)%				(20,799	)
Net Assets 100%			$	240,616

ADR	American Depositary Receipt.
*	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, 2010

ASSETS:
Investments in securities, at value (cost $218,362)	$	261,415
Cash		15,852
Receivables:
From advisor (See Note 3)		5,391
Investment securities sold		461
Prepaid expenses		2,876
Total assets		285,995
LIABILITIES:
Payables:
Investment securities purchased		7,187
Offering costs		3,094
Management fee		152
Fund administration		8
Directors’ fees		5
Accrued expenses and other liabilities		34,933
Total liabilities		45,379
NET ASSETS	$	240,616
COMPOSITION OF NET ASSETS:
Paid-in capital	$	199,045
Accumulated net investment loss		(5	)
Accumulated net realized loss on investments		(1,477	)
Net unrealized appreciation on investments		43,053
Net Assets	$	240,616
Outstanding shares (50 million shares of common stock authorized, $.001 par value)		13,335
Net asset value, offering and redemption price per share (Net assets divided by outstanding shares)		$18.04

See Notes to Financial Statements.

11

Statement of Operations

For the Period Ended December 31, 2010*

Investment income:
Dividends	$	234
Total investment income		234
Expenses:
Management fee		1,020
Shareholder servicing		5
Professional		36,074
Reports to shareholders		6,000
Offering costs		6,253
Custody		4,765
Fund administration		54
Directors’ fees		6
Other		2,292
Gross expenses		56,469
Management fee waived and expenses reimbursed (See Note 3)		(55,244	)
Net expenses		1,225
Net investment loss		(991	)
Net realized and unrealized gain (loss):
Net realized loss on investments		(1,477	)
Net change in unrealized appreciation on investments		43,053
Net realized and unrealized gain		41,576
Net Increase in Net Assets Resulting From Operations	$	40,585

* For the period April 23, 2010 (commencement of operations) to December 31, 2010.

See Notes to Financial Statements.

12

Statement of Changes in Net Assets

INCREASE IN NET ASSETS	For the Period Ended December 31, 2010*
Operations:
Net investment loss	$	(991	)
Net realized loss on investments		(1,477	)
Net change in unrealized appreciation on investments		43,053
Net increase in net assets resulting from operations		40,585
Capital share transactions (See Note 10):
Proceeds from sales of shares		200,031
Net increase in net assets resulting from capital share transactions		200,031
Net increase in net assets		240,616
NET ASSETS:
Beginning of period	$	—
End of period	$	240,616
Accumulated net investment loss	$	(5	)

* For the period April 23, 2010 (commencement of operations) to December 31, 2010.

See Notes to Financial Statements.

13

Financial Highlights

	4/23/2010(a) to 12/31/2010
Per Share Operating Performance
Net asset value, beginning of period		$15.00
Investment operations:
Net investment loss(b)		—	(c)
Net realized and unrealized loss		(.49	)
Total from investment operations		(.49	)
Net asset value, on SEC Effective Date, 5/1/2010		$14.51
Investment operations:
Net investment loss(b)		(.07	)
Net realized and unrealized gain		3.60
Total from investment operations		3.53
Net asset value, end of period		$18.04
Total Return(d)		20.27	%(e)(f)
Total Return(d)		24.33	%(e)(g)
Ratios to Average Net Assets:
Expenses, excluding expense reductions, and including management fee waived and expenses reimbursed		.90	%(h)
Expenses, including expense reductions, management fee waived and expenses reimbursed		.90	%(h)
Expenses, excluding expense reductions, management fee waived and expenses reimbursed		40.95	%(h)
Net investment loss		(.72	)%(h)
Supplemental Data:
Net assets, end of period (000)		$241
Portfolio turnover rate		92.19	%

^(a) Commencement of operations was 4/23/2010, SEC effective date and date shares first became available to the public was 5/1/2010.

^(b) Calculated using average shares outstanding during the period.

^(c) Amount is less than $.01.

^(d) Total return does not consider the effects of sales charges or other expenses imposed by an insurance company and assumes the reinvestment of all distributions.

^(e) Not annualized.

^(f) Total return for the period 4/23/10 through 12/31/10.

^(g) Total return for the period 5/1/10 through 12/31/10.

^(h) 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 and was incorporated under Maryland law in 1989. The Company consists of twelve separate portfolios (the “Funds”). This report covers Developing Growth Portfolio (the “Fund”). The Fund commenced operations on April 23, 2010. The Fund became effective with the SEC and first made shares available to the public on May 1, 2010. The Fund is diversified as defined in the Act.

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

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 fair value.

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

(c) Investment Income–Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis as earned. Discounts are accreted and premiums are amortized using the effective interest method and are included in Interest income in the Statement of Operations.

(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 period ended December 31, 2010. 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, the Fund may incur a loss upon disposition of the securities.

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

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

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

• Level 3 - significant unobservable inputs (including 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, 2010 in valuing the Fund’s investments carried at value:

Investment Type*	Level 1		Level 2		Level 3		Total
Common Stocks	$	261,415	$	–	$	–	$	261,415
Total	$	261,415	$	–	$	–	$	261,415

* 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 rate:

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

For the period ended December 31, 2010, the effective management fee, net of waivers and expenses reimbursed, was at an annualized rate of .00% of the Fund’s average daily net assets.

In addition, Lord Abbett provides certain administrative services to the Fund pursuant to an Administrative Services Agreement in return for a fee at an annual rate of .04% of the Fund’s average daily net assets.

For the period April 23, 2010 to April 30, 2010, Lord Abbett voluntarily agreed to waive all or a portion of its management fee and, if necessary, reimburse the Fund’s other expenses to the extent necessary so that total net annual operating expenses do not exceed an annualized rate of .90%.

For the period May 1, 2010 through April 30, 2011, Lord Abbett has contractually agreed to continue such waivers under the same terms. This agreement may be terminated only upon the approval of the Fund’s Board of Directors.

The Company, on behalf of the Fund, may enter 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 period ended December 31, 2010, the Fund did not incur expenses for such services arrangements.

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 semi-annually. Taxable net realized gains from investment transactions, reduced by allowable capital loss carryforwards, if any, are declared and distributed to shareholders at least annually. The capital loss carryforward amount, if any, is available to offset future net capital gains. Dividends and distributions to

17

Notes to Financial Statements (continued)

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.

As of December 31, 2010, the components of accumulated gains on a tax-basis were as follows:

Capital loss carryforward*	$	(170	)
Temporary differences		(5	)
Unrealized gains – net		41,746
Total accumulated gains – net	$	41,571

* As of December 31, 2010, the capital loss carryforward, along with the related expiration date, was as follows:

2018		Total
	$170	$	170

As of December 31, 2010, the aggregate unrealized security gains and losses based on cost for U.S. federal income tax purposes were as follows:

Tax cost	$	219,669
Gross unrealized gain		46,495
Gross unrealized loss		(4,749	)
Net unrealized security gain	$	41,746

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

Permanent items identified during the fiscal period ended December 31, 2010 have been reclassified among the components of net assets based on their tax basis treatment as follows:

Accumulated Net Investment Loss	Paid-in Capital
$986	$	(986	)

The permanent differences are attributable to the tax treatment of net investment loss.

On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the “Modernization Act”) was signed by the President. The Modernization Act includes numerous provisions that generally become effective for taxable years beginning after the date of enactment. Management is currently assessing the impact of the Modernization Act as it relates to the Fund.

5. PORTFOLIO SECURITIES TRANSACTIONS

Purchases and sales of investment securities (excluding short-term investments) for the fiscal period ended December 31, 2010 were as follows:

Purchases		Sales
	$408,990	$	189,151

There were no purchases or sales of U.S. Government securities for the fiscal period ended December 31, 2010.

18

Notes to Financial Statements (concluded)

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 an arrangement with its transfer agent and custodian, whereby credits realized as a result of uninvested cash balances are used to reduce a portion of 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. Different types of stocks shift in and out of favor depending on market and economic conditions. Growth stocks tend to be more volatile than other stocks. In addition, if the Fund’s assessment of a company’s potential for growth or market conditions is wrong, it could suffer losses or produce poor performance relative to other funds, even in a rising market. The Fund invests primarily in small-cap growth company stocks, which tend to be more volatile and can be less liquid than other types of stocks. Small-cap companies may also have more limited product lines, markets or financial resources, and typically experience a higher risk of failure than large-cap companies. Because the Fund may invest a portion of its assets in foreign securities and ADRs, it 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:

	Period Ended December 31,  2010†
Shares sold		13,335
Increase		13,335

^† For the period April 23, 2010 (commencement of operations) to December 31, 2010.

19

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 of Developing Growth Portfolio, one of the portfolios constituting the Lord Abbett Series Fund, Inc. (the “Company”), including the schedule of investments, as of December 31, 2010, and the related statement of operations, changes in net assets, and the financial highlights for the period from April 23, 2010 (commencement of operations) to December 31, 2010. 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 audit.

We conducted our audit 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 audit 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, 2010, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audit provides 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 Developing Growth Portfolio of the Lord Abbett Series Fund, Inc. as of December 31, 2010, the results of its operations, the changes in its net assets, and financial highlights for period from April 23, 2010 (commencement of operations) through December 31, 2010, in conformity with accounting principles generally accepted in the United States of America.

DELOITTE & TOUCHE LLP

New York, New York

February 15, 2011

20

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 the investment adviser provides, and annually considers whether to renew the contract with the adviser. Generally, each Director holds office until his/her successor is elected and qualified or until his/her earlier resignation or removal, as provided in the Company’s organizational documents.

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

Interested Directors

The following Directors are associated with Lord Abbett and are “interested persons” of the Company as defined in the Act. Mr. Dow and Ms. Foster are officers and directors or trustees of each of the 13 Lord Abbett-sponsored funds, which consist of 53 portfolios or series.

Name, Address and Year of Birth	Current Position and Length of Service with the Company	Principal Occupation and Other Directorships During Past Five Years
Robert S. Dow Lord, Abbett & Co. LLC 90 Hudson Street Jersey City, NJ 07302 (1945)	Director since 1995 and Chairman since 1996	Principal Occupation: Senior Partner of Lord Abbett (since 2007) and was formerly Managing Partner (1996 - 2007) and Chief Investment Officer (1995 - 2007), joined Lord Abbett in 1972. Other Directorships: None.
Daria L. Foster Lord, Abbett & Co. LLC 90 Hudson Street Jersey City, NJ 07302 (1954)	Director and President since 2006	Principal Occupation: Managing Partner of Lord Abbett (since 2007), and was formerly Director of Marketing and Client Service, joined Lord Abbett in 1990. Other Directorships: None.

Independent Directors

The following Independent Directors also are directors or trustees of each of the 13 Lord Abbett-sponsored funds, which consist of 53 portfolios or series.

Name, Address and Year of Birth	Current Position and Length of Service with the Company	Principal Occupation and Other Directorships During Past Five Years
E. Thayer Bigelow Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1941)	Director since 1994	Principal Occupation: Managing General Partner, Bigelow Media, LLC (since 2000); Senior Adviser, Time Warner Inc. (1998 - 2000). Other Directorships: Currently serves as director of Crane Co. (since 1984) and Huttig Building Products Inc. (since 1998). Previously served as a director of R.H. Donnelley Inc. (2009 - 2010) and Adelphia Communications Inc. (2003 - 2007).

21

Basic Information About Management (continued)

Name, Address and Year of Birth	Current Position and Length of Service with the Company	Principal Occupation and Other Directorships During Past Five Years
Robert B. Calhoun, Jr. Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1942)	Director since 1998	Principal Occupation: Senior Advisor of Monitor Clipper Partners, a private equity investment fund (since 1997); President of Clipper Asset Management Corp. (1991 - 2009). Other Directorships: Previously served as a director of Avondale, Inc. (1991 - 2005) and Interstate Bakeries Corp. (1991 - 2008).
Evelyn E. Guernsey Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1955)	Director since 2011	Principal Occupation: CEO, Americas of J.P. Morgan Asset Management (2004 - 2010). Other Directorships: None.
Julie A. Hill Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1946)	Director since 2004	Principal Occupation: Owner and CEO of The Hill Company, a business consulting firm (since 1998). Other Directorships: Currently serves as director of WellPoint, Inc., a health benefits company (since 1994). Previously served as a director of Resources Connection, Inc., a consulting firm (2004 - 2007).
Franklin W. Hobbs Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1947)	Director since 2001	Principal Occupation: Advisor of One Equity Partners, a private equity firm (since 2004). Other Directorships: Currently serves as a director and Chairman of the Board of Ally Financial 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	Principal Occupation: Chairman of Spencer Stuart (U.S.), an executive search consulting firm (since 1996). Other Directorships: Currently serves as director of Ace, Ltd. (since 1997). Previously served as a director of Hewitt Associates, Inc. (2004 - 2010).
James L.L. Tullis Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1947)	Director since 2006	Principal Occupation: CEO of Tullis-Dickerson and Co. Inc., a venture capital management firm (since 1990). Other Directorships: Currently serves as director of Crane Co. (since 1998). Previously served as a director of Viacell Inc. (2003 - 2007).

22

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 also may be officers of the other Lord Abbett-sponsored funds and maintain offices at 90 Hudson Street, Jersey City, NJ 07302. Unless otherwise indicated, the position(s) and title(s) listed under the “Principal Occupation” column indicate each officer’s position(s) and title(s) with Lord Abbett.

Name and Year of Birth	Current Position with the 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 of Lord Abbett (since 2007), and was formerly Managing Partner (1996 - 2007) and Chief Investment Officer (1995 - 2007), joined Lord Abbett in 1972.
Daria L. Foster (1954)	President	Elected in 2006	Managing Partner of Lord Abbett (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.
Robert A. Lee (1969)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 1997.
Vincent J. McBride (1964)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 2003.
Andrew H. O’Brien (1973)	Executive Vice President	Elected in 2010	Partner and Portfolio Manager, joined Lord Abbett in 1998.
F. Thomas O’Halloran, III (1955)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 2001.

23

Basic Information About Management (continued)

Name and Year of Birth	Current Position with the Company	Length of Service of Current Position	Principal Occupation During Past Five Years
Harold E. Sharon (1960)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 2003.
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.
A. Edward Allinson (1961)	Vice President	Elected in 2011	Portfolio Manager, joined Lord Abbett in 2005.
Sean J. Aurigemma (1969)	Vice President	Elected in 2010	Portfolio Manager, joined Lord Abbett in 2007 and was formerly a Managing Director and Portfolio Manager at Morgan Stanley (1999 - 2007).
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.
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	Partner and Director, joined Lord Abbett in 2001.

24

Basic Information About Management (continued)

Name and Year of Birth	Current Position with the Company	Length of Service of Current Position	Principal Occupation During Past Five Years
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).
Thomas B. Maher (1967)	Vice President	Elected in 2010	Partner and Portfolio Manager, joined Lord Abbett in 2003.
Justin C. Maurer (1969)	Vice President	Elected in 2010	Partner and Portfolio Manager, joined Lord Abbett in 2001.
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	Partner and Senior Deputy General Counsel, joined Lord Abbett in 2007 and was formerly an Executive Vice President and the General Counsel at Cohen & Steers Capital Management, Inc. (1999 - 2007).
Francis T. Timons (1969)	Vice President	Elected in 2010	Portfolio Manager, joined Lord Abbett in 2007 and was formerly a Research Analyst at Robert W. Baird & Co. (2004 - 2007).

25

Basic Information About Management (concluded)

Name and Year of Birth	Current Position with the Company	Length of Service of Current Position	Principal Occupation During Past Five Years
Arthur K. Weise (1970)	Vice President	Elected in 2010	Portfolio Manager, joined Lord Abbett in 2007 and was formerly a Managing Director, Portfolio Manager and Analyst at Bank of New York Institutional Asset Management (2005 -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 March 3, 2010, 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 proposed management agreement between the Fund and Lord Abbett. 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. Additionally, the Board took into consideration its familiarity with Lord Abbett gained through its previous meetings and discussions.

The materials received by the Board included, but were not limited to: (1) information provided by Lipper Inc. regarding the effective management fee rates and expense ratios for one or more groups of funds with similar objectives and of similar size (the “peer expense group”); and (2) information regarding the personnel and other resources devoted by Lord Abbett to managing the Fund.

Investment Management Services Generally. The Board considered the investment management services to be provided by Lord Abbett to the Fund, including investment research, portfolio management, and trading, and Lord Abbett’s commitment to compliance with all relevant legal requirements. The Board also observed that Lord Abbett was 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 to be 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. Because the Fund had not yet begun operations, the Board was not able to review the Fund’s investment performance and compliance.

Lord Abbett’s Personnel and Methods. The Board considered the qualifications of the personnel who would be providing investment management services to the Fund, in light of its investment objective and discipline. The Board noted that the same personnel provided management services to Lord Abbett Developing Growth Fund, Inc. 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 expected expense levels of the Fund and the expense levels of the peer expense group. It also considered the amount and nature of the fees to be paid by shareholders. The Board noted that it and Lord Abbett had agreed to cap expenses of the Fund for the period from May 1, 2010 through April 30, 2011 at 0.90% of average daily net assets.

27

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

Economies of Scale. The Board considered whether there might be economies of scale in managing the Fund and whether the Fund would benefit appropriately from any such economies of scale. The Board concluded that the proposed 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 to be paid by the Fund and the Fund’s shareholders to Lord Abbett and Distributor for services other than investment advisory services. The Board also considered the revenues and profitability of Lord Abbett’s investment advisory business apart from its mutual fund business, and the intangible benefits enjoyed by Lord Abbett by virtue of its relationship with the Fund. The Board observed that Distributor receives 12b-1 fees from certain of the Lord Abbett Funds as to shares held in accounts for which there is no other broker of record, may retain a portion of the 12b-1 fees 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.

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

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.

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.

Developing Growth Portfolio

SFDG-PORT-2-1210

(02/11)

2010

LORD ABBETT

ANNUAL

REPORT    

Lord Abbett

Series Fund—Fundamental Equity Portfolio*

For the fiscal year ended December 31, 2010

* Formerly known as All Value Portfolio

Lord Abbett Series Fund — Fundamental Equity Portfolio (formerly All Value Portfolio)

Annual Report

For the fiscal year ended December 31, 2010

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 performance of the Lord Abbett Series Fund — Fundamental Equity Portfolio for the fiscal year ended December 31, 2010. 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

For the fiscal year ended December 31, 2010, the Fund returned 19.03%, reflecting performance at the net asset value (NAV) of Class VC shares, with all distributions reinvested, compared to its benchmark, the Russell 3000^® Value Index,¹ which returned 16.23% over the same period.

The broad market generally advanced during the beginning of 2010, peaking in April. It then entered a period of dramatic uncertainty during the summer, and rallied strongly in the fourth quarter. We continue to seek out investments in high-quality companies that we believe are capable of maintaining their strong competitive positions during the kinds of difficult economic environments we have experienced over the past two years.

The largest contributor to Fund performance during this period was stock selection within the industrials and consumer discretionary sectors. Within industrials, shares of Eaton Corp., a maker of fluid power systems and vehicle transmissions, rose on better than expected earnings driven by its rapidly recovering

1

end markets. Within the consumer discretionary sector, shares of Wabco Holdings Inc., a commercial vehicle parts manufacturer, benefited from a recovery in European truck production levels, as well as higher sales and profits in emerging markets. Shares of car manufacturer Ford Motor Co. rose sharply, as auto sales in North America picked up and the company gained market share from its competitors. Our relative overweight within the strong-performing materials sector also aided Fund performance during the period.

The Fund’s relative performance was hampered most by weak stock selection within the information technology sector, along with a relative overweight in that sector. Shares of Adobe Systems Inc., a software company, tumbled after the company reported weakening sales and a disappointing outlook. Micron Technology, Inc., a semiconductor company, was hurt from oversupply and falling prices for memory chips, which cut into the company’s profit margins. Shares of security software developer McAfee, Inc. fell on a drop in company profits owing to a faulty antivirus update and foreign currency headwinds. A lack of exposure to the telecommunication services sector, which was one of the benchmark’s stronger performing sectors during the year, also detracted from relative Fund performance.

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.

¹The 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 also are included in either the Russell 1000^® Value or the Russell 2000^® Value indexes.

Unless otherwise specified, the index reflects total return, with all dividends reinvested. The index is unmanaged, does not reflect the deduction of fees or expenses, and is not available for direct investment.

Important Performance and Other Information

Performance data quoted in the following pages reflect past performance and are no guarantee of future results. Current performance may be higher or lower than the performance quoted. The investment return and principal value of an investment in 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, 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 above are as of December 31, 2010; 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.

2

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, 2010

	1 Year		5 Years		Life of Class
Class VC2		19.03%		5.53%		9.67%

¹    Performance for each unmanaged index does not reflect any fees or expenses. The performance of each index is not necessarily representative of the Fund’s performance. Performance for each index began on April 30, 2003.

²    The Class VC Shares commenced operations and performance for the Class began 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, 2010 through December 31, 2010).

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 7/1/10 – 12/31/10” 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†
	7/1/10		12/31/10		7/1/10 - 12/31/10
Class VC
Actual	$	1,000.00	$	1,249.90	$	6.52
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.43	$	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, 2010

Sector*	%**
Consumer Discretionary		8.84%
Consumer Staples		3.03%
Energy		16.67%
Financials		20.24%
Health Care		15.03%
Industrials		11.88%
Information Technology		9.29%
Materials		7.79%
Utilities		2.41%
Short-Term Investment		4.82%
Total		100.00%

* A sector may comprise several industries.

** Represents percent of total investments.

6

Schedule of Investments

December 31, 2010

Investments	Shares		Value (000)
COMMON STOCKS 95.48%
Aerospace & Defense 1.43%
Hexcel Corp.*		11,400	$	206
United Technologies Corp.		26,034		2,049
Total				2,255
Airlines 0.82%
Southwest Airlines Co.		99,500		1,292
Auto Components 0.15%
Tenneco, Inc.*		5,900		243
Automobiles 1.80%
Ford Motor Co.*		168,400		2,827
Biotechnology 3.79%
Amgen, Inc.*		68,000		3,733
Celgene Corp.*		26,000		1,538
Human Genome Sciences, Inc.*		12,700		303
Onyx Pharmaceuticals, Inc.*		10,400		383
Total				5,957
Capital Markets 9.33%
Affiliated Managers Group, Inc.*		18,200		1,806
Charles Schwab Corp. (The)		47,400		811
Franklin Resources, Inc.		6,700		745
Goldman Sachs Group, Inc. (The)		17,100		2,876
Invesco Ltd.		40,400		972
Lazard Ltd. Class A		73,400		2,899
LPL Investment Holdings, Inc.*		24,500		891
State Street Corp.		79,500		3,684
Total				14,684
Chemicals 2.48%
Air Products & Chemicals, Inc.		31,500		2,865

Investments	Shares		Value (000)
LyondellBasell Industries NV Class A (Netherlands)*(a)		30,400	$	1,046
Total				3,911
Commercial Banks 7.13%
City National Corp.		27,600		1,694
Commerce Bancshares, Inc.		23,688		941
Cullen/Frost Bankers, Inc.		25,900		1,583
KeyCorp		122,400		1,083
PNC Financial Services Group, Inc. (The)		21,900		1,330
Signature Bank*		16,700		835
TCF Financial Corp.		95,869		1,420
Wells Fargo & Co.		75,200		2,330
Total				11,216
Computers & Peripherals 0.23%
EMC Corp.*		16,031		367
Diversified Financial Services 1.66%
Bank of America Corp.		61,400		819
Citigroup, Inc.*		110,100		521
JPMorgan Chase & Co.		29,900		1,268
Total				2,608
Electric: Utilities 1.55%
NextEra Energy, Inc.		30,400		1,580
PPL Corp.		32,800		863
Total				2,443
Energy Equipment & Services 3.43%
Halliburton Co.		52,700		2,152
Superior Energy Services, Inc.*		24,600		861
Weatherford International Ltd. (Switzerland)*(a)		104,600		2,385
Total				5,398

See Notes to Financial Statements.

7

Schedule of Investments (continued)

December 31, 2010

Investments	Shares		Value (000)
Food Products 3.04%
Archer Daniels Midland Co.		85,900	$	2,584
Bunge Ltd.		33,700		2,208
Total				4,792
Gas Utilities 0.86%
EQT Corp.		30,300		1,359
Health Care Equipment & Supplies 2.01%
Cooper Cos., Inc. (The)		11,500		648
Kinetic Concepts, Inc.*		21,200		888
Wright Medical Group, Inc.*		26,500		412
Zimmer Holdings, Inc.*		22,700		1,219
Total				3,167
Health Care Providers & Services 5.68%
Express Scripts, Inc.*		36,100		1,951
Humana, Inc.*		34,205		1,872
McKesson Corp.		21,300		1,499
UnitedHealth Group, Inc.		71,000		2,564
Universal Health Services, Inc. Class B		24,300		1,055
Total				8,941
Hotels, Restaurants & Leisure 0.80%
Carnival Corp. Unit		16,600		765
Marriott International, Inc. Class A		12,039		500
Total				1,265
Household Durables 1.03%
Fortune Brands, Inc.		26,800		1,615
Industrial Conglomerates 1.17%
3M Co.		21,400		1,847
Information Technology Services 4.60%
Accenture plc Class A (Ireland)(a)		34,179		1,657
Fiserv, Inc.*		12,700		744

Investments	Shares		Value (000)
MasterCard, Inc. Class A		6,896	$	1,545
VeriFone Systems, Inc.*		52,800		2,036
Western Union Co. (The)		68,062		1,264
Total				7,246
Insurance 2.20%
Aflac, Inc.		27,500		1,552
Berkshire Hathaway, Inc. Class B*		14,900		1,194
Chubb Corp. (The)		11,900		710
Total				3,456
Machinery 7.94%
Dover Corp.		11,300		660
Eaton Corp.		18,670		1,895
EnPro Industries, Inc.*		20,400		848
Kennametal, Inc.		38,100		1,503
Pall Corp.		34,600		1,715
Parker Hannifin Corp.		17,213		1,485
RBC Bearings, Inc.*		10,800		422
Robbins & Myers, Inc.		16,400		587
Trinity Industries, Inc.		47,600		1,267
WABCO Holdings, Inc.*		34,700		2,114
Total				12,496
Media 4.65%
Interpublic Group of Cos., Inc. (The)*		244,900		2,601
Omnicom Group, Inc.		87,157		3,992
Walt Disney Co. (The)		19,400		728
Total				7,321
Metals & Mining 5.33%
Agnico-Eagle Mines Ltd. (Canada)(a)		13,300		1,020
Barrick Gold Corp. (Canada)(a)		55,372		2,945
Newmont Mining Corp.		23,400		1,437
Reliance Steel & Aluminum Co.		39,100		1,998

See Notes to Financial Statements.

8

Schedule of Investments (concluded)

December 31, 2010

Investments	Shares		Value (000)
Metals & Mining (continued)
United States Steel Corp.		16,900	$	987
Total				8,387
Oil, Gas & Consumable Fuels 13.30%
Anadarko Petroleum Corp.		45,300		3,450
Apache Corp.		8,500		1,013
Chevron Corp.		21,300		1,944
Devon Energy Corp.		22,800		1,790
El Paso Corp.		161,600		2,224
Exxon Mobil Corp.		105,110		7,686
Forest Oil Corp.*		5,100		194
QEP Resources, Inc.		23,800		864
Southwestern Energy Co.*		47,100		1,763
Total				20,928
Pharmaceuticals 3.60%
Abbott Laboratories		8,470		406
Teva Pharmaceutical Industries Ltd. ADR		42,700		2,226
Warner Chilcott plc Class A (Ireland)(a)		81,500		1,839
Watson Pharmaceuticals, Inc.*		23,148		1,196
Total				5,667
Road & Rail 0.55%
Heartland Express, Inc.		8,800		141
Kansas City Southern*		15,200		727
Total				868
Semiconductors & Semiconductor Equipment 2.18%
Intel Corp.		108,000		2,271
Texas Instruments, Inc.		35,900		1,167
Total				3,438
Software 2.30%
Adobe Systems, Inc.*		57,600		1,773
Intuit, Inc.*		19,400		956

Investments	Shares		Value (000)
Microsoft Corp.		31,900	$	891
Total				3,620
Specialty Retail 0.23%
Penske Automotive Group, Inc.*		20,400		355
Textiles, Apparel & Luxury Goods 0.21%
VF Corp.		3,800		327
Total Common Stocks (cost $124,354,578)				150,296
	Principal Amount (000)
SHORT-TERM INVESTMENT 4.84%
Repurchase Agreement
Repurchase Agreement dated 12/31/2010, 0.04% due 1/3/2011 with Fixed Income Clearing Corp. collateralized by $6,455,000 of Federal National Mortgage Assoc. at 4.625% due 5/1/2013 and $740,000 of U.S. Treasury Note at 1.75% due 4/15/2013; value: $7,771,169; proceeds: $7,615,926 (cost $7,615,901)	$	7,616	$	7,616
Total Investments in Securities 100.32% (cost $131,970,479)				157,912
Liabilities in Excess of Other Assets (0.32%)				(505	)
Net Assets 100.00%			$	157,407

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.

9

Statement of Assets and Liabilities

December 31, 2010

ASSETS:
Investments in securities, at value (cost $131,970,479)	$	157,911,862
Receivables:
Investment securities sold		468,340
Interest and dividends		67,096
Capital shares sold		50,674
From advisor (See Note 3)		9,564
Prepaid expenses		1,033
Total assets		158,508,569
LIABILITIES:
Payables:
Investment securities purchased		809,951
Management fee		97,625
Capital shares reacquired		36,709
Directors’ fees		6,402
Fund administration		5,207
Accrued expenses and other liabilities		145,729
Total liabilities		1,101,623
NET ASSETS	$	157,406,946
COMPOSITION OF NET ASSETS:
Paid-in capital	$	134,900,289
Distributions in excess of net investment income		(5,968	)
Accumulated net realized loss on investments		(3,428,758	)
Net unrealized appreciation on investments		25,941,383
Net Assets	$	157,406,946
Outstanding shares (50 million shares of common stock authorized, $.001 par value)		8,915,023
Net asset value, offering and redemption price per share (Net assets divided by outstanding shares)		$17.66

See Notes to Financial Statements.

10

Statement of Operations

For the Year Ended December 31, 2010

Investment income:
Dividends (net of foreign withholding taxes of $6,147)	$	1,816,228
Interest		861
Total investment income		1,817,089
Expenses:
Management fee		922,081
Shareholder servicing		447,716
Fund administration		49,178
Professional		40,189
Reports to shareholders		25,713
Custody		19,573
Directors’ fees		4,847
Other		2,852
Gross expenses		1,512,149
Expense reductions (See Note 7)		(169	)
Management fee waived (See Note 3)		(98,122	)
Net expenses		1,413,858
Net investment income		403,231
Net realized and unrealized gain:
Net realized gain on investments		9,600,156
Net change in unrealized appreciation/depreciation on investments		13,510,634
Net realized and unrealized gain		23,110,790
Net Increase in Net Assets Resulting From Operations	$	23,514,021

See Notes to Financial Statements.

11

Statements of Changes in Net Assets

INCREASE IN NET ASSETS	For the Year Ended December 31, 2010			For the Year Ended December 31, 2009
Operations:
Net investment income	$	403,231		$	195,652
Net realized gain (loss) on investments		9,600,156			(5,385,837	)
Net change in unrealized appreciation/depreciation on investments		13,510,634			27,388,821
Net increase in net assets resulting from operations		23,514,021			22,198,636
Distributions to shareholders from:
Net investment income		(437,520	)		(165,971	)
Capital share transactions (See Note 10):
Proceeds from sales of shares		50,199,072			25,661,346
Reinvestment of distributions		437,520			165,971
Cost of shares reacquired		(24,074,952	)		(16,975,453	)
Net increase in net assets resulting from capital share transactions		26,561,640			8,851,864
Net increase in net assets		49,638,141			30,884,529
NET ASSETS:
Beginning of year	$	107,768,805		$	76,884,276
End of year	$	157,406,946		$	107,768,805
Undistributed (distributions in excess of) net investment income	$	(5,968	)	$	27,004

See Notes to Financial Statements.

12

Financial Highlights

	Year Ended 12/31
	2010			2009			2008			2007			2006
Per Share Operating Performance
Net asset value, beginning of year		$14.88			$11.83			$16.84			$16.48			$14.82
Investment operations:
Net investment income(a)		.05			.03			.08			.10			.11
Net realized and unrealized gain (loss)		2.78			3.04			(4.92	)		1.01			2.06
Total from investment operations		2.83			3.07			(4.84	)		1.11			2.17
Distributions to shareholders from:
Net investment income		(.05	)		(.02	)		(.08	)		(.09	)		(.09	)
Net realized gain		–			–			(.09	)		(.66	)		(.42	)
Total distributions		(.05	)		(.02	)		(.17	)		(.75	)		(.51	)
Net asset value, end of year		$17.66			$14.88			$11.83			$16.84			$16.48
Total Return(b)		19.03	%		25.97	%		(28.67	)%		6.72	%		14.64	%
Ratios to Average Net Assets:
Expenses, excluding expense reductions and including management fee waived and expenses reimbursed		1.15	%		1.15	%		1.15	%		1.15	%		1.15	%
Expenses, including expense reductions, management fee waived and expenses reimbursed		1.15	%		1.15	%		1.15	%		1.15	%		1.15	%
Expenses, excluding expense reductions, management fee waived and expenses reimbursed		1.23	%		1.26	%		1.27	%		1.24	%		1.30	%
Net investment income		.33	%		.22	%		.56	%		.55	%		.69	%
Supplemental Data:
Net assets, end of year (000)		$157,407			$107,769			$76,884			$101,747			$75,940
Portfolio turnover rate		73.39	%		85.09	%		81.82	%		62.96	%		59.92	%

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

^(b) Total return does not consider the effects of sales charges or other expenses imposed by an insurance company and assumes the reinvestment of all distributions.

See Notes to Financial Statements.

13

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 and was incorporated under Maryland law in 1989. The Company consists of twelve separate portfolios (the “Funds”). This report covers Fundamental Equity Portfolio (the “Fund,” formerly, All Value Portfolio). Effective May 1, 2010, All Value Portfolio changed its name to Fundamental Equity Portfolio. 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 has 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 the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

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 fair value.

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

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

14

Notes to Financial Statements (continued)

(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, 2007 through December 31, 2010. 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 gain on investments 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, the Fund may incur a loss upon disposition of the securities.

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

15

Notes to Financial Statements (continued)

assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below:

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

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

• Level 3 – significant unobservable inputs (including 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, 2010 in valuing the Fund’s investments carried at value:

Investment Type*	Level 1 (000)		Level 2 (000)		Level 3 (000)		Total (000)
Common Stocks	$	150,296	$	–	$	–	$	150,296
Repurchase Agreement		–		7,616		–		7,616
Total	$	150,296	$	7,616	$	–	$	157,912

* 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 rate:

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

For the fiscal year ended December 31, 2010, the effective management fee, net of waivers, was at an annualized rate of .67% of the Fund’s average daily net assets.

In addition, Lord Abbett provides certain administrative services to the Fund pursuant to an Administrative Services Agreement in return for a fee at an annual rate of .04% of the Fund’s average daily net assets.

For the period January 1, 2010 through April 30 2010, Lord Abbett voluntarily agreed to waive all or a portion of its management fee and, if necessary, reimburse the Fund’s other expenses to the extent necessary so that total net annual operating expenses did not exceed an annualized rate of 1.15%.

16

Notes to Financial Statements (continued)

For the period May 1, 2010 through April 30, 2011, Lord Abbett has contractually agreed to continue such waivers under the same terms. This agreement may be terminated only upon the approval of the Fund’s Board of Directors.

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, 2010, the Fund incurred expenses of $430,305 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 semi-annually. Taxable net realized gains from investment transactions, reduced by allowable capital loss carryforwards, if any, are declared and distributed to shareholders at least annually. The capital loss carryforward amount, if any, is available to offset future net capital gains. Dividends and distributions to shareholders are recorded on the ex-dividend date. The amounts of dividends and distributions from net investment income and net realized capital gains are determined in accordance with federal income tax regulations, which may differ from accounting principles generally accepted in the United States of America. These book/tax differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the components of net assets based on their federal tax basis treatment; temporary differences do not require reclassification. Dividends and distributions, which exceed earnings and profits for tax purposes, are reported as a tax return of capital.

The tax character of distributions paid during the fiscal years ended December 31, 2010 and 2009 was as follows:

	Year Ended 12/31/2010		Year Ended 12/31/2009
Distributions paid from:
Ordinary income	$	437,520	$	165,971
Total distributions paid	$	437,520	$	165,971

As of December 31, 2010, the components of accumulated gains on a tax-basis were as follows:

Capital loss carryforward*	$	(3,244,685	)
Temporary differences		(6,402	)
Unrealized gains — net		25,757,744
Total accumulated gains — net	$	22,506,657

17

Notes to Financial Statements (continued)

^*As of December 31, 2010, the capital loss carryforward, along with the related expiration date, was as follows:

2017		Total
	$3,244,685	$	3,244,685

As of December 31, 2010, the aggregate unrealized security gains and losses based on cost for U.S. federal income tax purposes were as follows:

Tax cost	$132,154,118
Gross unrealized gain		26,338,548
Gross unrealized loss		(580,804	)
Net unrealized security gain	$	25,757,744

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

Permanent items identified during the fiscal year ended December 31, 2010 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
	$1,317	$	(11	)	$	(1,306	)

The permanent differences are attributable to the tax treatment of foreign currency transactions and certain distributions paid.

On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the “Modernization Act”) was signed by the President. The Modernization Act includes numerous provisions that generally become effective for taxable years beginning after the date of enactment. Management is currently assessing the impact of the Modernization Act as it relates to the Fund.

5.    PORTFOLIO SECURITIES TRANSACTIONS

Purchases and sales of investment securities (excluding short-term investments) for the fiscal year ended December 31, 2010 were as follows:

Purchases	Sales
$107,488,790	$	86,679,313

There were no purchases or sales of U.S. Government securities for the fiscal year ended December 31, 2010.

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

18

Notes to Financial Statements (concluded)

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 an arrangement with its transfer agent and custodian, whereby credits realized as a result of uninvested cash balances are used to reduce a portion of 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 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 the Fund’s exposure to foreign companies (and ADRs), 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, 2010			Year Ended December 31, 2009
Shares sold		3,176,938			2,046,125
Reinvestment of distributions		25,139			11,057
Shares reacquired		(1,527,419	)		(1,314,208	)
Increase		1,674,658			742,974

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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 of Fundamental Equity Portfolio (formerly known as All Value Portfolio), one of the portfolios constituting the Lord Abbett Series Fund, Inc. (the “Company”), including the schedule of investments, as of December 31, 2010, 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, 2010, 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 Fundamental Equity Portfolio (formerly known as All Value Portfolio) of the Lord Abbett Series Fund, Inc. as of December 31, 2010, 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 15, 2011

20

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 the investment adviser provides, and annually considers whether to renew the contract with the adviser. Generally, each Director holds office until his/her successor is elected and qualified or until his/her earlier resignation or removal, as provided in the Company’s organizational documents.

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

Interested Directors

The following Directors are associated with Lord Abbett and are “interested persons” of the Company as defined in the Act. Mr. Dow and Ms. Foster are officers and directors or trustees of each of the 13 Lord Abbett-sponsored funds, which consist of 53 portfolios or series.

Name, Address and Year of Birth	Current Position and Length of Service with the Company	Principal Occupation and Other Directorships During Past Five Years
Robert S. Dow Lord, Abbett & Co. LLC 90 Hudson Street Jersey City, NJ 07302 (1945)	Director since 1995 and Chairman since 1996	Principal Occupation: Senior Partner of Lord Abbett (since 2007) and was formerly Managing Partner (1996 - 2007) and Chief Investment Officer (1995 - 2007), joined Lord Abbett in 1972. Other Directorships: None.
Daria L. Foster Lord, Abbett & Co. LLC 90 Hudson Street Jersey City, NJ 07302 (1954)	Director and President since 2006	Principal Occupation: Managing Partner of Lord Abbett (since 2007), and was formerly Director of Marketing and Client Service, joined Lord Abbett in 1990. Other Directorships: None.

Independent Directors

The following Independent Directors also are directors or trustees of each of the 13 Lord Abbett-sponsored funds, which consist of 53 portfolios or series.

Name, Address and Year of Birth	Current Position and Length of Service with the Company	Principal Occupation and Other Directorships During Past Five Years
E. Thayer Bigelow Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1941)	Director since 1994	Principal Occupation: Managing General Partner, Bigelow Media, LLC (since 2000); Senior Adviser, Time Warner Inc. (1998 - 2000). Other Directorships: Currently serves as director of Crane Co. (since 1984) and Huttig Building Products Inc. (since 1998). Previously served as a director of R.H. Donnelley Inc. (2009 - 2010) and Adelphia Communications Inc. (2003 - 2007).

21

Basic Information About Management (continued)

Name, Address and Year of Birth	Current Position and Length of Service with the Company	Principal Occupation and Other Directorships During Past Five Years
Robert B. Calhoun, Jr. Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1942)	Director since 1998	Principal Occupation: Senior Advisor of Monitor Clipper Partners, a private equity investment fund (since 1997); President of Clipper Asset Management Corp. (1991 - 2009). Other Directorships: Previously served as a director of Avondale, Inc. (1991 - 2005) and Interstate Bakeries Corp. (1991 - 2008).

Evelyn E. Guernsey Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1955)	Director since 2011	Principal Occupation: CEO, Americas of J.P. Morgan Asset Management (2004 - 2010). Other Directorships: None.
Julie A. Hill Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1946)	Director since 2004	Principal Occupation: Owner and CEO of The Hill Company, a business consulting firm (since 1998). Other Directorships: Currently serves as director of WellPoint, Inc., a health benefits company (since 1994). Previously served as a director of Resources Connection, Inc., a consulting firm (2004 - 2007).
Franklin W. Hobbs Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1947)	Director since 2001	Principal Occupation: Advisor of One Equity Partners, a private equity firm (since 2004). Other Directorships: Currently serves as a director and Chairman of the Board of Ally Financial 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	Principal Occupation: Chairman of Spencer Stuart (U.S.), an executive search consulting firm (since 1996). Other Directorships: Currently serves as director of Ace, Ltd. (since 1997). Previously served as a director of Hewitt Associates, Inc. (2004 - 2010).
James L.L. Tullis Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1947)	Director since 2006	Principal Occupation: CEO of Tullis-Dickerson and Co. Inc., a venture capital management firm (since 1990). Other Directorships: Currently serves as director of Crane Co. (since 1998). Previously served as a director of Viacell Inc. (2003 - 2007).

22

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 also may be officers of the other Lord Abbett-sponsored funds and maintain offices at 90 Hudson Street, Jersey City, NJ 07302. Unless otherwise indicated, the position(s) and title(s) listed under the “Principal Occupation” column indicate each officer’s position(s) and title(s) with Lord Abbett.

Name and Year of Birth	Current Position with the 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 of Lord Abbett (since 2007), and was formerly Managing Partner (1996 - 2007) and Chief Investment Officer (1995 - 2007), joined Lord Abbett in 1972.
Daria L. Foster (1954)	President	Elected in 2006	Managing Partner of Lord Abbett (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.
Robert A. Lee (1969)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 1997.
Vincent J. McBride (1964)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 2003.
Andrew H. O’Brien (1973)	Executive Vice President	Elected in 2010	Partner and Portfolio Manager, joined Lord Abbett in 1998.
F. Thomas O’Halloran, III (1955)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 2001.

23

Basic Information About Management (continued)

Name and Year of Birth	Current Position with the Company	Length of Service of Current Position	Principal Occupation During Past Five Years
Harold E. Sharon (1960)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 2003.
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.
A. Edward Allinson (1961)	Vice President	Elected in 2011	Portfolio Manager, joined Lord Abbett in 2005.
Sean J. Aurigemma (1969)	Vice President	Elected in 2010	Portfolio Manager, joined Lord Abbett in 2007 and was formerly a Managing Director and Portfolio Manager at Morgan Stanley (1999 - 2007).
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.
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	Partner and Director, joined Lord Abbett in 2001.

24

Basic Information About Management (continued)

Name and Year of Birth	Current Position with the Company	Length of Service of Current Position	Principal Occupation During Past Five Years
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).
Thomas B. Maher (1967)	Vice President	Elected in 2010	Partner and Portfolio Manager, joined Lord Abbett in 2003.
Justin C. Maurer (1969)	Vice President	Elected in 2010	Partner and Portfolio Manager, joined Lord Abbett in 2001.
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	Partner and Senior Deputy General Counsel, joined Lord Abbett in 2007 and was formerly an Executive Vice President and the General Counsel at Cohen & Steers Capital Management, Inc. (1999 - 2007).
Francis T. Timons (1969)	Vice President	Elected in 2010	Portfolio Manager, joined Lord Abbett in 2007 and was formerly a Research Analyst at Robert W. Baird & Co. (2004 - 2007).

25

Basic Information About Management (concluded)

Name and Year of Birth	Current Position with the Company	Length of Service of Current Position	Principal Occupation During Past Five Years
Arthur K. Weise (1970)	Vice President	Elected in 2010	Portfolio Manager, joined Lord Abbett in 2007 and was formerly a Managing Director, Portfolio Manager and Analyst at Bank of New York Institutional Asset Management (2005 - 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 15 and 16, 2010, 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, including information about the investment performance of the Fund compared to the performance of its benchmark, 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 the results of the examination of the portfolio management team by members of the Contract Committee during the year, which included a meeting with the portfolio management team. Additionally, the Board took into consideration its familiarity with Lord Abbett gained through its previous meetings and discussions during the course of the year.

The materials received by the Board included, but were not limited to: (1) information provided by Lipper Inc. (“Lipper”) regarding the investment performance of the Fund compared to the investment performance of one or more groups of funds with substantially similar investment objectives, including a group of funds within the same investment classification/objective (each group a “performance universe”) and to the investment performance of an appropriate fund index; (2) information on the expense ratios, effective management fee rates, and other expense components for the Fund and similar funds (the “peer group”); (3) information provided by Lord Abbett on the projected expense ratios, management fee rates, and other expense components for the Fund; (4) sales and redemption information for the Fund; (5) information regarding Lord Abbett’s financial condition; (6) an analysis of the relative profitability of the management agreement to Lord Abbett; (7) information provided by Lord Abbett regarding the investment management fees Lord Abbett receives from its other advisory clients maintaining accounts with a similar investment strategy as the Fund; (8) information regarding the distribution arrangements of the Fund; and (9) 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 previously had 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 considered the investment performance of the Fund in relation to two performance universes, one consisting of multi-cap core funds and the other consisting of multi-cap value funds. As to the first performance universe, the Board observed that the investment performance of the Fund was in the third quintile for the nine-month period, the second quintile for the one-year period, and the first quintile for the three-year and five-year periods. The Board also observed that the investment performance was lower than

27

the Lipper Variable Underlying Funds Multi-Cap Core Index for the nine-month period and higher than that of the Index for the one-year, three-year, and five-year periods. As to the second performance universe, the Board observed that the investment performance was in the second quintile of its peer group for the nine-month and one-year periods and the first quintile for the three-year and five-year periods. The Board also observed that the investment performance was higher than that of the Lipper Variable Underlying Funds Multi-Cap Value Index for each of those 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 Fundamental Equity Fund was in the first quintile of one performance universe and the second quintile of a second performance universe and higher than the relevant Lipper indexes 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 management personnel. The Board also observed that in 2009 one of the Fund’s portfolio managers, Howard 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 management fees and total expenses of the Fund in relation to two peer groups, one consisting of multi-cap core funds and the other consisting of multi-cap value funds. As to the first peer group, the Board observed for that for the fiscal year ended December 31, 2009 the contractual management and administrative services fees were approximately three basis points above the median of the peer group and the actual management and administrative services fees were approximately the same as the median of the peer group. The Board observed that for the fiscal year ended December 31, 2009 the Fund’s total expense ratio was approximately the same as the median of the peer group. As to the second peer group, the Board observed that for the fiscal year ended December 31, 2009 the contractual management and administrative services fees were approximately ten basis points above the median of the peer group and the actual management and administrative services fees were approximately eight basis points above the median of the peer group. The board observed that for the fiscal year ended December 31, 2009 the Fund’s total expense ratio was approximately four basis points above the median of the peer group. The Board noted that effective May 1, 2010 it and Lord Abbett had entered into an expense limitation agreement that had the effect of limiting the total expense ratio to 1.15% of average daily net assets, that Lord Abbett proposed to renew the agreement through April 30, 2012, and that that expense ratio was the same as in the peer group comparison.

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

28

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 increased in its 2010 fiscal year. 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

100% of the ordinary income distributions paid by the Fund during the year is qualified dividend income.

For corporate shareholders, 100% of the ordinary income distributions is 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.

Fundamental Equity Portfolio

SFFE-PORT-2-1210

(02/11)

2010

LORD ABBETT

ANNUAL

REPORT    

Lord Abbett

Series Fund—Growth and Income Portfolio

For the fiscal year ended December 31, 2010

Lord Abbett Series Fund — Growth and Income Portfolio

Annual Report

For the fiscal year ended December 31, 2010

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 performance of the Lord Abbett Series Fund — Growth and Income Portfolio for the fiscal year ended December 31, 2010. 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

For the fiscal year ended December 31, 2010, the Fund returned 17.41%, reflecting performance at the net asset value (NAV) of Class VC shares, with all distributions reinvested, compared to its benchmark, Russell 1000^® Value Index,¹ which returned 15.51% over the same period.

The broad market generally advanced during the beginning of 2010, peaking in April. It then entered a period of dramatic uncertainty during the summer, and rallied strongly in the fourth quarter. The Fund’s holdings in fundamentally solid and attractively valued companies have benefited from generally improving economic conditions and market sentiment. While the market continued to present timely investment opportunities, the market also required the rigorous execution of our sell discipline.

A beneficial overweight and favorable stock selection combined within the materials sector to contribute markedly to Fund performance. The outperformance of the metals & mining and chemicals industries coupled with their overweight

1

positions bolstered the overall results of the sector as well as the Fund. Cliffs Natural Resources outperformed as it delivered strong earnings throughout the period. The producer of iron ore pellets and supplier of metallurgical coal benefitted due to rising iron ore prices, which have been driven by strong demand in its Asia Pacific operations. The company also made an accretive acquisition of a producer/exporter of coal. Elsewhere within the sector, mining company Freeport McMoRan Copper & Gold generated excellent returns during the period as a result of producing second and third quarter earnings reports that outpaced consensus expectations. While the results were aided by rising gold and copper prices, it was higher-than-expected volume for gold and copper that drove the outperformance. In addition, volumes were driven by strong demand from China. Favorable stock selection within the robust consumer discretionary sector contributed relatively to Fund performance for the year. Ford Motor Company was one of the best performers for the year as the automobile manufacturer continued to effectively execute its strategy. The most recent quarter was the fifth consecutive quarter of profitability for Ford’s North American operations. The company also suggested that the margins for this segment could continue to expand. The automaker’s quarterly results exceeded consensus earnings estimates as a result of improved pricing in its North American segment and better-than-expected pre-tax profits in its financial services operations. In its focused pursuit of improving its balance sheet, the company announced that it is taking steps to be net-debt neutral by the end of 2010, about one year earlier than previously expected. Analysts are anticipating that Ford’s initiatives will be accretive to earnings and that the company will be significantly net-cash positive in 2011.

Within the health care sector, stock selection detracted from relative Fund performance. Shares of biotechnology firm Gilead Sciences tumbled following the release of its first quarter earnings report, as management lowered full-year guidance based upon weaker expectations for its franchise HIV drug business. Also within the sector, the share price of medical device manufacturer Boston Scientific declined throughout the holding period. Stock selection within the consumer staples sector detracted from relative Fund performance. Archer-Daniels-Midland, an agricultural services company, missed expectations by a wide margin due in part to not capitalizing as expected on dislocations in the grain markets in the Black Sea region. Stock selection within the financials sector detracted from relative Fund performance for the year. Shares of brokerage firm Charles Schwab underperformed during the period, as continuing, low short-term interest rates made it necessary for the firm to subsidize its sizable money market fund businesses.

2

Some of this unfavorable stock selection was offset by solid performance by regional banks Zions Bancorp., SunTrust Banks and KeyCorp, all of which outperformed the overall financial sector and the benchmark, as well as favorable stock selection results.

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 Russell 1000^® Value Index measures the performance of those Russell 1000^® companies with lower price-to-book ratios and lower forecasted growth values.

Unless otherwise specified, the index reflects total return, with all dividends reinvested. The index is unmanaged, does not reflect the deduction of fees or expenses, and is not available for direct investment.

Important Performance and Other Information

Performance data quoted in the following pages reflect past performance and are no guarantee of future results. Current performance may be higher or lower than the performance quoted. The investment return and principal value of an investment in 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 above are as of December 31, 2010; 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, 2010

	1 Year		5 Years		10 Years
Class VC		17.41%		1.49%		2.29%

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, 2010 through December 31, 2010).

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 7/1/10 – 12/31/10” 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†
	7/1/10		12/31/10		7/1/10 - 12/31/10
Class VC
Actual	$	1,000.00	$	1,239.90	$	5.14
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.62	$	4.63

^† Net expenses are equal to the Fund's annualized expense ratio of 0.91%, 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, 2010

Sector*	%**
Consumer Discretionary		12.29%
Consumer Staples		5.01%
Energy		16.69%
Financials		24.24%
Health Care		13.09%
Industrials		9.33%
Information Technology		4.96%
Materials		9.20%
Telecommunication Services		2.86%
Utilities		1.72%
Short-Term Investment		0.61%
Total		100.00%

* A sector may comprise several industries.

** Represents percent of total investments.

6

Schedule of Investments

December 31, 2010

Investments	Shares		Value (000)
COMMON STOCKS 100.09%
Aerospace & Defense 0.43%
United Technologies Corp.		64,197	$	5,054
Airlines 2.24%
AMR Corp.*		904,400		7,045
Delta Air Lines, Inc.*		1,201,747		15,142
Southwest Airlines Co.		314,400		4,081
Total				26,268
Automobiles 2.52%
Ford Motor Co.*		1,315,904		22,094
General Motors Co.*		203,396		7,497
Total				29,591
Beverages 0.62%
PepsiCo, Inc.		112,100		7,323
Biotechnology 2.42%
Amgen, Inc.*		357,596		19,632
Celgene Corp.*		148,500		8,782
Total				28,414
Capital Markets 6.96%
Bank of New York Mellon Corp. (The)		157,473		4,756
Charles Schwab Corp. (The)		732,748		12,537
Franklin Resources, Inc.		31,652		3,520
Goldman Sachs Group, Inc. (The)		185,572		31,206
Invesco Ltd.		195,100		4,694
State Street Corp.		540,200		25,033
Total				81,746
Chemicals 2.56%
Dow Chemical Co. (The)		378,600		12,925
Mosaic Co. (The)		224,700		17,158
Total				30,083

Investments	Shares		Value (000)
Commercial Banks 8.88%
KeyCorp		1,366,728	$	12,096
M&T Bank Corp.		93,579		8,146
PNC Financial Services Group, Inc. (The)		240,269		14,589
SunTrust Banks, Inc.		430,300		12,698
Wells Fargo & Co.		1,517,301		47,021
Zions Bancorporation		398,505		9,656
Total				104,206
Communications Equipment 0.25%
QUALCOMM, Inc.		58,500		2,895
Computers & Peripherals 0.86%
EMC Corp.*		442,100		10,124
Construction & Engineering 0.64%
Fluor Corp.		112,700		7,468
Diversified Financial Services 6.72%
Bank of America Corp.		1,143,393		15,253
Citigroup, Inc.*		4,856,700		22,972
JPMorgan Chase & Co.		957,238		40,606
Total				78,831
Diversified Telecommunication Services 2.88%
AT&T, Inc.		643,447		18,904
Verizon Communications, Inc.		416,200		14,892
Total				33,796
Electric: Utilities 0.75%
NextEra Energy, Inc.		87,000		4,523
Southern Co.		111,895		4,278
Total				8,801
Electrical Equipment 0.98%
Emerson Electric Co.		200,300		11,451

See Notes to Financial Statements.

7

Schedule of Investments (continued)

December 31, 2010

Investments	Shares		Value (000)
Energy Equipment & Services 3.27%
Halliburton Co.		271,400	$	11,081
Schlumberger Ltd.		327,092		27,312
Total				38,393
Food & Staples Retailing 1.11%
Kroger Co. (The)		581,111		12,994
Food Products 2.57%
Archer Daniels Midland Co.		512,700		15,422
Bunge Ltd.		224,346		14,699
Total				30,121
Health Care Equipment & Supplies 2.49%
Baxter International, Inc.		112,900		5,715
Beckman Coulter, Inc.		78,200		5,883
Covidien plc (Ireland)(a)		108,371		4,948
St. Jude Medical, Inc.*		161,823		6,918
Zimmer Holdings, Inc.*		107,500		5,771
Total				29,235
Health Care Providers & Services 3.78%
CIGNA Corp.		251,200		9,209
Express Scripts, Inc.*		179,600		9,707
UnitedHealth Group, Inc.		706,126		25,498
Total				44,414
Hotels, Restaurants & Leisure 3.42%
Carnival Corp. Unit		275,550		12,706
Hyatt Hotels Corp. Class A*		267,700		12,250
Marriott International, Inc. Class A		364,874		15,157
Total				40,113
Household Products 0.75%
Colgate-Palmolive Co.		110,100		8,849
Information Technology Services 0.64%
MasterCard, Inc. Class A		33,700		7,553

Investments	Shares		Value (000)
Insurance 1.85%
Berkshire Hathaway, Inc. Class B*		127,500	$	10,214
MetLife, Inc.		259,724		11,542
Total				21,756
Internet & Catalog Retail 1.94%
HSN, Inc.*		743,909		22,793
Life Sciences Tools & Services 0.85%
Thermo Fisher Scientific, Inc.*		179,600		9,943
Machinery 3.05%
Caterpillar, Inc.		160,100		14,995
Eaton Corp.		205,480		20,858
Total				35,853
Media 3.75%
Comcast Corp. Class A		1,083,002		23,794
Omnicom Group, Inc.		112,438		5,150
Time Warner Cable, Inc.		128,051		8,455
Walt Disney Co. (The)		177,600		6,662
Total				44,061
Metals & Mining 5.36%
Barrick Gold Corp. (Canada)(a)		405,516		21,565
Cliffs Natural Resources, Inc.		138,500		10,804
Freeport-McMoRan Copper & Gold, Inc.		51,400		6,173
Newmont Mining Corp.		271,730		16,692
United States Steel Corp.		131,546		7,685
Total				62,919
Multi-Line Retail 0.74%
Target Corp.		144,424		8,684
Multi-Utilities 0.98%
PG&E Corp.		240,300		11,496

See Notes to Financial Statements.

8

Schedule of Investments (concluded)

December 31, 2010

Investments	Shares		Value (000)
Oil, Gas & Consumable Fuels 13.54%
Anadarko Petroleum Corp.		341,200	$	25,986
Apache Corp.		43,900		5,234
Chevron Corp.		465,525		42,479
Devon Energy Corp.		104,900		8,236
El Paso Corp.		780,570		10,741
Exxon Mobil Corp.		468,211		34,236
Hess Corp.		158,600		12,139
Southwestern Energy Co.*		152,700		5,716
Suncor Energy, Inc. (Canada)(a)		211,521		8,099
Valero Energy Corp.		262,000		6,057
Total				158,923
Paper & Forest Products 1.35%
International Paper Co.		580,600		15,816
Pharmaceuticals 3.64%
Abbott Laboratories		227,164		10,883
Merck & Co., Inc.		218,100		7,860
Pfizer, Inc.		454,000		7,950
Teva Pharmaceutical Industries Ltd. ADR		306,667		15,987
Total				42,680
Road & Rail 2.06%
Hertz Global Holdings, Inc.*		1,670,320		24,203
Semiconductors & Semiconductor Equipment 1.54%
Intel Corp.		644,200		13,547
Texas Instruments, Inc.		139,900		4,547
Total				18,094

Investments	Shares		Value (000)
Software 1.70%
Adobe Systems, Inc.*		228,300	$	7,027
Oracle Corp.		414,100		12,961
Total				19,988
Total Common Stocks (cost $921,916,139)				1,174,932
	Principal Amount (000)
SHORT-TERM INVESTMENT 0.61%
Repurchase Agreement
Repurchase Agreement dated 12/31/2010, 0.04% due 1/3/2011 with Fixed Income Clearing Corp. collateralized by $7,275,000 of Federal Home Loan Mortgage Corp. at 1.75% due 1/28/2013; value: $7,338,656; proceeds: $7,193,829 (cost $7,193,805)	$	7,194		7,194
Total Investments in Securities 100.70% (cost $929,109,944)				1,182,126
Liabilities in Excess of Other Assets (0.70%)				(8,241	)
Net Assets 100.00%			$	1,173,885

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.

9

Statement of Assets and Liabilities

December 31, 2010

ASSETS:
Investments in securities, at value (cost $929,109,944)	$	1,182,125,820
Receivables:
Investment securities sold		8,203,507
Interest and dividends		598,429
Capital shares sold		216,924
Prepaid expenses		10,328
Total assets		1,191,155,008
LIABILITIES:
Payables:
Capital shares reacquired		8,769,852
Investment securities purchased		6,957,674
Management fee		485,013
Directors’ fees		162,577
Fund administration		39,337
Accrued expenses and other liabilities		855,967
Total liabilities		17,270,420
NET ASSETS	$	1,173,884,588
COMPOSITION OF NET ASSETS:
Paid-in capital	$	1,501,712,429
Distributions in excess of net investment income		(162,577	)
Accumulated net realized loss on investments		(580,681,140	)
Net unrealized appreciation on investments		253,015,876
Net Assets	$	1,173,884,588
Outstanding shares (250 million shares of common stock authorized, $.001 par value)		49,386,181
Net asset value, offering and redemption price per share (Net assets divided by outstanding shares)		$23.77

See Notes to Financial Statements.

10

Statement of Operations

For the Year Ended December 31, 2010

Investment income:
Dividends (net of foreign withholding taxes of $72,850)	$	16,157,218
Interest		6,120
Total investment income		16,163,338
Expenses:
Management fee		5,471,826
Shareholder servicing		3,916,483
Fund administration		441,953
Reports to shareholders		119,506
Professional		62,706
Directors’ fees		43,944
Custody		21,548
Other		82,321
Gross expenses		10,160,287
Expense reductions (See Note 8)		(1,452	)
Net expenses		10,158,835
Net investment income		6,004,503
Net realized and unrealized gain:
Net realized gain on investments		54,848,002
Net change in unrealized appreciation/depreciation on investments		119,105,795
Net realized and unrealized gain		173,953,797
Net Increase in Net Assets Resulting From Operations	$	179,958,300

See Notes to Financial Statements.

11

Statements of Changes in Net Assets

INCREASE (DECREASE) IN NET ASSETS	For the Year Ended December 31, 2010			For the Year Ended December 31, 2009
Operations:
Net investment income	$	6,004,503		$	9,978,487
Net realized gain (loss) on investments		54,848,002			(318,850,895	)
Net realized loss on redemptions in-kind (See Note 6)		–			(181,621,468	)
Net change in unrealized appreciation/depreciation on investments		119,105,795			563,092,280
Net increase in net assets resulting from operations		179,958,300			72,598,404
Distributions to shareholders from:
Net investment income		(6,076,863	)		(9,940,508	)
Capital share transactions (See Note 11):
Proceeds from sales of shares		43,775,292			40,142,340
Reinvestment of distributions		6,076,863			9,940,508
Cost of shares reacquired		(156,805,741	)		(153,818,111	)
Redemptions in-kind (See Note 6)		–			(342,061,308	)
Net decrease in net assets resulting from capital share transactions		(106,953,586	)		(445,796,571	)
Net increase (decrease) in net assets		66,927,851			(383,138,675	)
NET ASSETS:
Beginning of year	$	1,106,956,737		$	1,490,095,412
End of year	$	1,173,884,588		$	1,106,956,737
Distributions in excess of net investment income	$	(162,577	)	$	(95,108	)

See Notes to Financial Statements.

12

Financial Highlights

	Year Ended 12/31
	2010			2009			2008			2007			2006
Per Share Operating Performance
Net asset value, beginning of year		$20.35			$17.27			$27.91			$29.34			$26.16
Investment operations:
Net investment income(a)		.12			.17			.35			.39			.39
Net realized and unrealized gain (loss)		3.42			3.10			(10.55	)		.64			4.12
Total from investment operations		3.54			3.27			(10.20	)		1.03			4.51
Distributions to shareholders from:
Net investment income		(.12	)		(.19	)		(.36	)		(.38	)		(.36	)
Net realized gain		–			–			(.08	)		(2.08	)		(.97	)
Total distributions		(.12	)		(.19	)		(.44	)		(2.46	)		(1.33	)
Net asset value, end of year		$23.77			$20.35			$17.27			$27.91			$29.34
Total Return(b)		17.41	%		18.90	%		(36.42	)%		3.44	%		17.27	%
Ratios to Average Net Assets:
Expenses, including expense reductions		.92	%		.93	%		.90	%		.88	%		.87	%
Expenses, excluding expense reductions		.92	%		.93	%		.90	%		.88	%		.87	%
Net investment income		.54	%		.95	%		1.51	%		1.27	%		1.38	%
Supplemental Data:
Net assets, end of year (000)		$1,173,885			$1,106,957			$1,490,095			$2,407,662			$2,153,380
Portfolio turnover rate		55.80	%		71.71	%(c)		113.29	%		91.72	%(c)		51.65	%(c)

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

^(b) Total return does not consider the effects of sales charges or other expenses imposed by an insurance company and assumes the reinvestment of all distributions.

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

See Notes to Financial Statements.

13

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 and was incorporated under Maryland law in 1989. The Company consists of twelve 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 has 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 the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

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 fair value.

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

(c) Investment Income–Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis as earned. Discounts are accreted and premiums are amortized using the effective interest method and are included in Interest income in the Statement of Operations. 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.

14

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, 2007 through December 31, 2010. 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 gain on investments 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, the Fund may incur a loss upon disposition of the securities.

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

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

15

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, 2010 in valuing the Fund’s investments carried at value:

Investment Type*	Level 1 (000)		Level 2 (000)		Level 3 (000)		Total (000)
Common Stocks	$	1,174,932	$	–	$	–	$	1,174,932
Repurchase Agreement		–		7,194		–		7,194
Total	$	1,174,932	$	7,194	$	–	$	1,182,126

* 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 rate:

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

For the fiscal year ended December 31, 2010, the effective management fee paid to Lord Abbett was at an annualized rate of .50% of the Fund’s average daily net assets.

In addition, Lord Abbett provides certain administrative services to the Fund pursuant to an Administrative Services Agreement in return for a fee 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, 2010, the Fund incurred expenses of $3,867,084 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.

16

Notes to Financial Statements (continued)

4.    DISTRIBUTIONS AND CAPITAL LOSS CARRYFORWARDS

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

The tax character of distributions paid during the fiscal years ended December 31, 2010 and the 2009 was as follows:

	12/31/2010		12/31/2009
Distributions paid from:
Ordinary income	$	6,076,863	$	9,940,508
Total distributions paid	$	6,076,863	$	9,940,508

As of December 31, 2010, the components of accumulated losses on a tax-basis were as follows:

Capital loss carryforwards*	$	(541,000,636	)
Temporary differences		(2,130,676	)
Unrealized gains – net		215,303,471
Total accumulated losses – net	$	(327,827,841	)

* As of December 31, 2010, the capital loss carryforwards, along with the related expiration dates, were as follows:

2016		2017		Total
	$158,855,028	$	382,145,608	$	541,000,636

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 capital losses of $1,968,099 during fiscal 2010.

As of December 31, 2010, the aggregate unrealized security gains and losses based on cost for U.S. federal income tax purposes were as follows:

Tax cost	$	966,822,349
Gross unrealized gain		221,699,040
Gross unrealized loss		(6,395,569	)
Net unrealized security gain	$	215,303,471

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

17

Notes to Financial Statements (continued)

Permanent items identified during the fiscal year ended December 31, 2010 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
	$4,891	$	(911	)	$	(3,980	)

The permanent differences are attributable to the tax treatment of certain distributions paid and foreign currency transactions.

On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the “Modernization Act”) was signed by the President. The Modernization Act includes numerous provisions that generally become effective for taxable years beginning after the date of enactment. Management is currently assessing the impact of the Modernization Act as it relates to the Fund.

5.    PORTFOLIO SECURITIES TRANSACTIONS

Purchases and sales of investment securities (excluding short-term investments) for the fiscal year ended December 31, 2010 were as follows:

Purchases	Sales
$591,735,453	$	643,911,427

There were no purchases or sales of U.S. Government securities for the fiscal year ended December 31, 2010.

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 which is included on the Statements of Changes in Net Assets.

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.

18

Notes to Financial Statements (concluded)

8.    EXPENSE REDUCTIONS

The Company has entered into an arrangement with its transfer agent and custodian, whereby credits realized as a result of uninvested cash balances are used to reduce a portion of 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 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, foreign companies and ADR’s, 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, 2010			Year Ended December 31, 2009
Shares sold		2,065,677			2,356,631
Reinvestment of distributions		257,360			485,376
Shares reacquired		(7,323,805	)		(9,252,869	)
Redemptions in-kind		–			(25,488,920	)
Decrease		(5,000,768	)		(31,899,782	)

19

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 of Growth and Income Portfolio, one of the portfolios constituting the Lord Abbett Series Fund, Inc. (the “Company”), including the schedule of investments, as of December 31, 2010, 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, 2010, 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 Growth and Income Portfolio of the Lord Abbett Series Fund, Inc. as of December 31, 2010, 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 15, 2011

20

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 the investment adviser provides, and annually considers whether to renew the contract with the adviser. Generally, each Director holds office until his/her successor is elected and qualified or until his/her earlier resignation or removal, as provided in the Company’s organizational documents.

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

Interested Directors

The following Directors are associated with Lord Abbett and are “interested persons” of the Company as defined in the Act. Mr. Dow and Ms. Foster are officers and directors or trustees of each of the 13 Lord Abbett-sponsored funds, which consist of 53 portfolios or series.

Name, Address and Year of Birth	Current Position and Length of Service with the Company	Principal Occupation and Other Directorships During Past Five Years
Robert S. Dow Lord, Abbett & Co. LLC 90 Hudson Street Jersey City, NJ 07302 (1945)	Director since 1995 and Chairman since 1996	Principal Occupation: Senior Partner of Lord Abbett (since 2007) and was formerly Managing Partner (1996 - 2007) and Chief Investment Officer (1995 - 2007), joined Lord Abbett in 1972. Other Directorships: None.
Daria L. Foster Lord, Abbett & Co. LLC 90 Hudson Street Jersey City, NJ 07302 (1954)	Director and President since 2006	Principal Occupation: Managing Partner of Lord Abbett (since 2007), and was formerly Director of Marketing and Client Service, joined Lord Abbett in 1990. Other Directorships: None.

Independent Directors

The following Independent Directors also are directors or trustees of each of the 13 Lord Abbett-sponsored funds, which consist of 53 portfolios or series.

Name, Address and Year of Birth	Current Position and Length of Service with the Company	Principal Occupation and Other Directorships During Past Five Years
E. Thayer Bigelow Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1941)	Director since 1994	Principal Occupation: Managing General Partner, Bigelow Media, LLC (since 2000); Senior Adviser, Time Warner Inc. (1998 - 2000). Other Directorships: Currently serves as director of Crane Co. (since 1984) and Huttig Building Products Inc. (since 1998). Previously served as a director of R.H. Donnelley Inc. (2009 - 2010) and Adelphia Communications Inc. (2003 - 2007).

21

Basic Information About Management (continued)

Name, Address and Year of Birth	Current Position and Length of Service with the Company	Principal Occupation and Other Directorships During Past Five Years
Robert B. Calhoun, Jr. Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1942)	Director since 1998	Principal Occupation: Senior Advisor of Monitor Clipper Partners, a private equity investment fund (since 1997); President of Clipper Asset Management Corp. (1991–2009). Other Directorships: Previously served as a director of Avondale, Inc. (1991 - 2005) and Interstate Bakeries Corp. (1991 - 2008).
Evelyn E. Guernsey Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1955)	Director since 2011	Principal Occupation: CEO, Americas of J.P. Morgan Asset Management (2004 - 2010). Other Directorships: None.
Julie A. Hill Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1946)	Director since 2004	Principal Occupation: Owner and CEO of The Hill Company, a business consulting firm (since 1998). Other Directorships: Currently serves as director of WellPoint, Inc., a health benefits company (since 1994). Previously served as a director of Resources Connection, Inc., a consulting firm (2004 - 2007).
Franklin W. Hobbs Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1947)	Director since 2001	Principal Occupation: Advisor of One Equity Partners, a private equity firm (since 2004). Other Directorships: Currently serves as a director and Chairman of the Board of Ally Financial 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	Principal Occupation: Chairman of Spencer Stuart (U.S.), an executive search consulting firm (since 1996). Other Directorships: Currently serves as director of Ace, Ltd. (since 1997). Previously served as a director of Hewitt Associates, Inc. (2004 - 2010).
James L.L. Tullis Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1947)	Director since 2006	Principal Occupation: CEO of Tullis-Dickerson and Co. Inc., a venture capital management firm (since 1990). Other Directorships: Currently serves as director of Crane Co. (since 1998). Previously served as a director of Viacell Inc. (2003 - 2007).

22

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 also may be officers of the other Lord Abbett-sponsored funds and maintain offices at 90 Hudson Street, Jersey City, NJ 07302. Unless otherwise indicated, the position(s) and title(s) listed under the “Principal Occupation” column indicate each officer’s position(s) and title(s) with Lord Abbett.

Name and Year of Birth	Current Position with the 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 of Lord Abbett (since 2007), and was formerly Managing Partner (1996 - 2007) and Chief Investment Officer (1995 - 2007), joined Lord Abbett in 1972.
Daria L. Foster (1954)	President	Elected in 2006	Managing Partner of Lord Abbett (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.
Robert A. Lee (1969)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 1997.
Vincent J. McBride (1964)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 2003.
Andrew H. O’Brien (1973)	Executive Vice President	Elected in 2010	Partner and Portfolio Manager, joined Lord Abbett in 1998.
F. Thomas O’Halloran, III (1955)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 2001.

23

Basic Information About Management (continued)

Name and Year of Birth	Current Position with the Company	Length of Service of Current Position	Principal Occupation During Past Five Years
Harold E. Sharon (1960)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 2003.
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.
A. Edward Allinson (1961)	Vice President	Elected in 2011	Portfolio Manager, joined Lord Abbett in 2005.
Sean J. Aurigemma (1969)	Vice President	Elected in 2010	Portfolio Manager, joined Lord Abbett in 2007 and was formerly a Managing Director and Portfolio Manager at Morgan Stanley (1999 - 2007).
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.
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	Partner and Director, joined Lord Abbett in 2001.

24

Basic Information About Management (continued)

Name and Year of Birth	Current Position with the Company	Length of Service of Current Position	Principal Occupation During Past Five Years
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).
Thomas B. Maher (1967)	Vice President	Elected in 2010	Partner and Portfolio Manager, joined Lord Abbett in 2003.
Justin C. Maurer (1969)	Vice President	Elected in 2010	Partner and Portfolio Manager, joined Lord Abbett in 2001.
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	Partner and Senior Deputy General Counsel, joined Lord Abbett in 2007 and was formerly an Executive Vice President and the General Counsel at Cohen & Steers Capital Management, Inc. (1999 - 2007).
Francis T. Timons (1969)	Vice President	Elected in 2010	Portfolio Manager, joined Lord Abbett in 2007 and was formerly a Research Analyst at Robert W. Baird & Co. (2004 - 2007).

25

Basic Information About Management (concluded)

Name and Year of Birth	Current Position with the Company	Length of Service of Current Position	Principal Occupation During Past Five Years
Arthur K. Weise (1970)	Vice President	Elected in 2010	Portfolio Manager, joined Lord Abbett in 2007 and was formerly a Managing Director, Portfolio Manager and Analyst at Bank of New York Institutional Asset Management (2005 - 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 15 and 16, 2010, 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, including information about the investment performance of the Fund compared to the performance of its benchmark, 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 the results of the examination of the portfolio management team by members of the Contract Committee during the year, which included a meeting with the portfolio management team. Additionally, the Board took into consideration its familiarity with Lord Abbett gained through its previous meetings and discussions during the course of the year.

The materials received by the Board included, but were not limited to: (1) information provided by Lipper Inc. (“Lipper”) regarding the investment performance of the Fund compared to the investment performance of one or more groups of funds with substantially similar investment objectives, including a group of funds within the same investment classification/objective (each group a “performance universe”) and to the investment performance of an appropriate fund index; (2) information on the expense ratios, effective management fee rates, and other expense components for the Fund and similar funds (the “peer group”); (3) information provided by Lord Abbett on the projected expense ratios, management fee rates, and other expense components for the Fund; (4) sales and redemption information for the Fund; (5) information regarding Lord Abbett’s financial condition; (6) an analysis of the relative profitability of the management agreement to Lord Abbett; (7) information provided by Lord Abbett regarding the investment management fees Lord Abbett receives from its other advisory clients maintaining accounts with a similar investment strategy as the Fund; (8) information regarding the distribution arrangements of the Fund; and (9) 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 previously had 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 two performance universes, the first consisting of large-cap core funds underlying variable insurance products and the second consisting of large-cap value funds underlying variable insurance products. As to the first performance universe, the Board observed that the Fund’s investment performance was in the first quintile for the nine-month and ten-year periods and the fourth quintile for the one-year, three-year, and five-year periods. The Board also

27

observed that the investment performance was higher than the Lipper Variable Underlying Large-Cap Core Index for the nine-month and ten-year periods and lower than that of the Index for the one-year, three-year, and five-year periods. As to the second performance universe, the Board observed that the investment performance of the Fund was in the second quintile of its performance universe for the nine-month period, the third quintile for the three-year and ten-year periods, and the fourth quintile for the one-year and five-year periods. The Board also observed that the investment performance was higher than that of the Lipper Variable Underlying Funds Large-Cap Value Index for the nine-month, three-year, and ten-year periods and lower than that of the Index for the one-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 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 noted that the portfolio manager of the Fund, Eli M. Salzmann, had recently left Lord Abbett and had been replaced by Robert P. Fetch and Sean J. Aurigemma. 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 two different peer groups, the first consisting of large-cap core funds underlying variable insurance products and the second consisting of large-cap value funds underlying variable insurance products. The Board considered the fiscal periods on which the peer group comparisons were based, and noted that such periods ended before September 30, 2010. It also considered the projected expense levels of the Fund. It also considered the amount and nature of the fees paid by shareholders. As to the first peer group, the Board observed that for the fiscal year ended December 31, 2009 the contractual management and administrative services fees were approximately thirteen basis points below the median of the peer group and the actual management and administrative services fees were approximately eight basis points below the median of the peer group. The Board also observed that for the fiscal year ended December 31, 2009 the total expense ratio of the Fund was approximately one basis point below the median of the peer group. As to the second peer group, the Board observed that for the fiscal year ended December 31, 2009 the contractual management and administrative services fees were approximately nine basis points below the median of the peer group and the actual management and administrative services fees were eight basis points below the median of the peer group. The Board also observed that for the fiscal year ended December 31, 2009 the total expense ratio of the Fund was the same as the median of the peer group. The Board considered the projected expense ratio and how that expense ratio would relate to the expense ratios of the peer groups.

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

28

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 increased in its 2010 fiscal year. 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

100% of the ordinary income distributions paid by the Fund during the year is qualified dividend income.

For corporate shareholders, 100.00% of the ordinary income distributions is 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-2-1210

(02/11)

2010

LORD ABBETT

ANNUAL

REPORT    

Lord Abbett

Series Fund—Growth Opportunities Portfolio

For the fiscal year ended December 31, 2010

Lord Abbett Series Fund — Growth Opportunities Portfolio

Annual Report

For the fiscal year ended December 31, 2010

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 performance of the Lord Abbett Series Fund — Growth Opportunities Portfolio for the fiscal year ended December 31, 2010. 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

For the fiscal year ended December 31, 2010, the Fund returned 22.92%, reflecting performance at the net asset value (NAV) of Class VC shares, with all distributions reinvested, compared to its benchmark, the Russell Midcap^® Growth Index,1 which returned 26.38% over the same period.

While 2010 was characterized by a near-constant debate about the likelihood of a double-dip recession, important developments throughout the year continually pointed to stability and recovery. Gross domestic product (GDP) advanced in each calendar quarter, household income increased, industrial production rose, and home prices stabilized. Late in the year, we began to see positive employment data, and Congress passed a stimulative tax package. These developments led to significant gains for equities during the year, particularly for small and mid-sized companies.

While the portfolio underperformed for the fiscal year, we are encouraged by the strength and nature of the stock market rally of late. During the fourth quarter, investors sought out companies with compelling growth characteristics. This was an attractive environment for our strategy of conducting rigorous fundamental

1

research to identify and invest in firms with strong relative growth characteristics.

Stock selection within the health care sector detracted from relative Fund performance, despite making a positive overall contribution. Intuitive Surgical, Inc., producer of the da Vinci robotic surgical system, suffered amid slower than expected procedure growth and reimbursement issues in Japan. Within the consumer discretionary space, shares of Apollo Group, Inc., operator of the University of Phoenix, declined following a report by the Government Accountability Office that created political uncertainty for the entire for-profit education industry. Although our holdings in the financial sector contributed positively to the fiscal year return, the portfolio’s performance was not able to keep pace with the benchmark in this sector. The largest detractor from Fund performance in the sector was asset management firm Blackrock, Inc., whose shares declined amid concerns about fund flows and margin compression.

Fund performance was helped by strong stock selection within the technology sector. One of the largest contributors in the technology sector was F5 Networks, Inc., which offers a superior solution for managing network traffic and has been gaining market share from key competitors. NetApp, Inc., a provider of data storage services that allow users to access data from any computer, appreciated as the growth of “cloud computing”* has accelerated. Stock selection also was strong in the materials sector, where we saw appreciation of our holding in Walter Energy, Inc., a producer of metallurgical coal used for steel production.

* Cloud computing is a term used to describe Internet-based computing whereby software, operating systems, and infrastructure are accessed via the internet rather than via a local installation.

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 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 are also members of the Russell l000^® Growth Index.

Unless otherwise specified, the index reflects total return, with all dividends reinvested. The index is unmanaged, does not reflect the deduction of fees or expenses, and is not available for direct investment.

Important Performance and Other Information

Performance data quoted in the following pages reflect past performance and are no guarantee of future results. Current performance may be higher or lower than the performance quoted. The investment return and principal value of an investment in 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, 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 above are as of December 31, 2010; these views and portfolio

2

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, the Russell Midcap^® Index and the S&P MidCap 400^® Growth Index, assuming reinvestment of all dividends and distributions. The Fund believes that the Russell Midcap^® Index is a more appropriate benchmark for the Fund and therefore will remove the S&P MidCap 400^® Growth Index from the next Annual Report. 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, 2010

	1 Year		5 Years		Life of Class
Class VC2		22.92%		7.65%		9.54%

¹    Performance for each unmanaged index does not reflect any fees or expenses. The performance of each index is not necessarily representative of the Fund’s performance. Performance for each index began on April 30, 2003.

²    The Class VC shares commenced operations and performance for the Class began 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, 2010 through December 31, 2010).

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 7/1/10 – 12/31/10” 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†
	7/1/10		12/31/10		7/1/10 - 12/31/10
Class VC
Actual	$	1,000.00	$	1,338.10	$	7.07
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.17	$	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, 2010

Sector*	%**
Consumer Discretionary		23.22%
Consumer Staples		1.71%
Energy		8.77%
Financials		8.80%
Health Care		9.15%
Industrials		16.62%
Information Technology		24.01%
Materials		7.72%
Total		100.00%

* A sector may comprise several industries.

** Represents percent of total investments.

6

Schedule of Investments

December 31, 2010

Investments	Shares		Value (000)
COMMON STOCKS 100.48%
Air Freight & Logistics 1.19%
C.H. Robinson Worldwide, Inc.		16,217	$	1,300
Airlines 0.56%
United Continental Holdings, Inc.*		25,946		618
Auto Components 1.08%
Gentex Corp.		28,513		843
Lear Corp.*		3,412		337
Total				1,180
Biotechnology 1.71%
Alexion Pharmaceuticals, Inc.*		14,264		1,149
Onyx Pharmaceuticals, Inc.*		19,585		722
Total				1,871
Capital Markets 5.31%
Affiliated Managers Group, Inc.*		12,305		1,221
BlackRock, Inc.		3,612		688
Invesco Ltd.		32,062		771
Lazard Ltd. Class A		26,854		1,060
LPL Investment Holdings, Inc.*		17,390		632
T. Rowe Price Group, Inc.		22,506		1,453
Total				5,825
Chemicals 4.12%
Albemarle Corp.		17,904		999
Celanese Corp. Series A		21,528		886
Eastman Chemical Co.		6,516		548
FMC Corp.		6,935		554
Huntsman Corp.		49,552		773
LyondellBasell Industries NV Class A (Netherlands)*(a)		22,180		763
Total				4,523
Commercial Banks 0.51%
City National Corp.		9,175		563

Investments	Shares		Value (000)
Communications Equipment 2.52%
Acme Packet, Inc.*		12,341	$	656
Ciena Corp.*		32,222		678
F5 Networks, Inc.*		7,465		972
Juniper Networks, Inc.*		12,427		459
Total				2,765
Computers & Peripherals 2.13%
NetApp, Inc.*		24,958		1,372
SanDisk Corp.*		19,280		961
Total				2,333
Construction & Engineering 0.71%
Chicago Bridge & Iron Co. NV (Netherlands)*(a)		23,681		779
Diversified Financial Services 0.50%
Moody’s Corp.		20,591		546
Electrical Equipment 3.27%
AMETEK, Inc.		23,660		929
Cooper Industries plc		22,687		1,322
Rockwell Automation, Inc.		18,551		1,330
Total				3,581
Electronic Equipment, Instruments & Components 2.61%
Agilent Technologies, Inc.*		34,335		1,422
Amphenol Corp. Class A		12,091		638
Dolby Laboratories, Inc. Class A*		12,032		803
Total				2,863
Energy Equipment & Services 3.58%
Atwood Oceanics, Inc.*		16,388		612
Cameron International Corp.*		14,844		753
FMC Technologies, Inc.*		12,822		1,140
Weatherford International Ltd. (Switzerland)*(a)		62,397		1,423
Total				3,928

See Notes to Financial Statements.

7

Schedule of Investments (continued)

December 31, 2010

Investments	Shares		Value (000)
Food & Staples Retailing 0.92%
Whole Foods Market, Inc.*		19,992	$	1,011
Food Products 0.79%
Green Mountain Coffee Roasters, Inc.*		26,530		872
Health Care Equipment & Supplies 2.42%
Beckman Coulter, Inc.		4,527		341
Edwards Lifesciences Corp.*		5,511		445
Hospira, Inc.*		22,049		1,228
Intuitive Surgical, Inc.*		2,490		642
Total				2,656
Health Care Providers & Services 2.13%
Express Scripts, Inc.*		15,144		819
Humana, Inc.*		15,583		853
Universal Health Services, Inc. Class B		15,383		668
Total				2,340
Health Care Technology 0.52%
SXC Health Solutions Corp.*		13,292		570
Hotels, Restaurants & Leisure 5.94%
Chipotle Mexican Grill, Inc.*		3,588		763
Darden Restaurants, Inc.		14,914		693
Gaylord Entertainment Co.*		20,284		729
Las Vegas Sands Corp.*		14,409		662
Marriott International, Inc. Class A		27,004		1,122
MGM Resorts International*		41,425		615
Royal Caribbean Cruises Ltd.*		16,675		784
Starwood Hotels & Resorts Worldwide, Inc.		18,828		1,144
Total				6,512
Household Durables 0.60%
Whirlpool Corp.		7,387		656

Investments	Shares		Value (000)
Information Technology Services 1.46%
VeriFone Systems, Inc.*		20,877	$	805
Western Union Co. (The)		43,077		800
Total				1,605
Insurance 1.54%
Marsh & McLennan Cos., Inc.		35,951		983
Principal Financial Group, Inc.		21,711		707
Total				1,690
Internet & Catalog Retail 1.30%
priceline.com, Inc.*		3,564		1,424
Internet Software & Services 1.24%
Akamai Technologies, Inc.*		19,102		899
Baidu, Inc. ADR*		4,728		456
Total				1,355
Leisure Equipment & Products 0.91%
Hasbro, Inc.		21,251		1,003
Life Sciences Tools & Services 0.96%
Illumina, Inc.*		16,620		1,053
Machinery 7.41%
Cummins, Inc.		14,054		1,546
Deere & Co.		7,945		660
Dover Corp.		14,141		827
Eaton Corp.		4,820		489
Flowserve Corp.		7,095		846
Ingersoll-Rand plc (Ireland)(a)		22,345		1,052
Joy Global, Inc.		4,436		385
Kennametal, Inc.		11,356		448
Pall Corp.		18,644		924
Parker Hannifin Corp.		11,039		953
Total				8,130
Media 2.39%
Interpublic Group of Cos., Inc. (The)*		98,386		1,045

See Notes to Financial Statements.

8

Schedule of Investments (continued)

December 31, 2010

Investments	Shares		Value (000)
Media (continued)
Lamar Advertising Co. Class A*		22,496	$	896
Scripps Networks Interactive, Inc. Class A		13,071		676
Total				2,617
Metals & Mining 2.74%
Agnico-Eagle Mines Ltd. (Canada)(a)		5,018		385
Cliffs Natural Resources, Inc.		15,884		1,239
Walter Energy, Inc.		10,808		1,382
Total				3,006
Multi-Line Retail 1.74%
J.C. Penney Co., Inc.		19,694		636
Nordstrom, Inc.		30,041		1,273
Total				1,909
Oil, Gas & Consumable Fuels 5.23%
Arch Coal, Inc.		16,031		562
Concho Resources, Inc.*		16,524		1,449
CONSOL Energy, Inc.		23,410		1,141
Continental Resources, Inc.*		16,833		991
Resolute Energy Corp.*		28,900		427
Whiting Petroleum Corp.*		9,911		1,161
Total				5,731
Paper & Forest Products 0.89%
International Paper Co.		35,889		978
Pharmaceuticals 1.46%
Warner Chilcott plc Class A (Ireland)(a)		29,990		677
Watson Pharmaceuticals, Inc.*		17,844		922
Total				1,599
Professional Services 2.08%
Monster Worldwide, Inc.*		58,905		1,392
Robert Half International, Inc.		28,985		887
Total				2,279

Investments	Shares		Value (000)
Real Estate Management & Development 0.98%
CB Richard Ellis Group, Inc. Class A*		52,372	$	1,073
Road & Rail 1.49%
Con-way, Inc.		15,713		575
Kansas City Southern*		22,083		1,057
Total				1,632
Semiconductors & Semiconductor Equipment 7.31%
Altera Corp.		23,104		822
Analog Devices, Inc.		31,779		1,197
Atheros Communications, Inc.*		19,413		697
Atmel Corp.*		75,079		925
Broadcom Corp. Class A		9,184		400
Cypress Semiconductor Corp.*		43,709		812
Lam Research Corp.*		11,164		578
Linear Technology Corp.		23,841		825
Marvell Technology Group Ltd.*		17,743		329
NVIDIA Corp.*		69,186		1,065
ON Semiconductor Corp.*		36,699		363
Total				8,013
Software 6.85%
ANSYS, Inc.*		12,539		653
BMC Software, Inc.*		22,552		1,063
Citrix Systems, Inc.*		19,258		1,317
Intuit, Inc.*		10,658		525
Nuance Communications, Inc.*		37,306		678
Red Hat, Inc.*		21,457		980
Rovi Corp.*		11,537		715
salesforce.com, Inc.*		9,903		1,307
SuccessFactors, Inc.*		9,680		280
Total				7,518
Specialty Retail 7.09%
Bed Bath & Beyond, Inc.*		22,243		1,093
Dick’s Sporting Goods, Inc.*		26,707		1,002

See Notes to Financial Statements.

9

Schedule of Investments (concluded)

December 31, 2010

Investments	Shares		Value (000)
Specialty Retail (continued)
Limited Brands, Inc.		43,886	$	1,349
O’Reilly Automotive, Inc.*		15,612		943
Ross Stores, Inc.		20,851		1,319
Tiffany & Co.		19,422		1,209
Tractor Supply Co.		17,801		863
Total				7,778
Textiles, Apparel & Luxury Goods 2.29%
Coach, Inc.		18,270		1,011
Hanesbrands, Inc.*		21,993		559
Phillips-Van Heusen Corp.		14,958		942
Total				2,512
Total Investments in Common Stocks 100.48% (cost $83,818,681)				110,197
Liabilities in Excess of Cash and Other Assets (0.48%)				(521	)
Net Assets 100.00%			$	109,676

ADR	American Depositary Receipt.
*	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, 2010

ASSETS:
Investments in securities, at value (cost $83,818,681)	$	110,197,312
Receivables:
Investment securities sold		1,383,099
Dividends		33,238
Capital shares sold		7,548
From advisor (See Note 3)		5,545
Prepaid expenses and other assets		484
Total assets		111,627,226
LIABILITIES:
Payables:
Investment securities purchased		1,115,361
To bank		573,025
Management fee		76,436
Capital shares reacquired		11,772
Directors’ fees		8,324
Fund administration		3,822
Accrued expenses and other liabilities		162,470
Total liabilities		1,951,210
NET ASSETS	$	109,676,016
COMPOSITION OF NET ASSETS:
Paid-in capital	$	79,302,672
Accumulated net investment loss		(8,097	)
Accumulated net realized gain on investments		4,002,810
Net unrealized appreciation on investments		26,378,631
Net Assets	$	109,676,016
Outstanding shares (50 million shares of common stock authorized, $.001 par value)		6,236,988
Net asset value, offering and redemption price per share (Net assets divided by outstanding shares)		$17.58

See Notes to Financial Statements.

11

Statement of Operations

For the Year Ended December 31, 2010

Investment income:
Dividends	$	1,021,095
Interest		126
Total investment income		1,021,221
Expenses:
Management fee		827,156
Shareholder servicing		373,816
Fund administration		41,358
Professional		40,032
Reports to shareholders		6,575
Custody		5,552
Directors’ fees		4,099
Other		2,661
Gross expenses		1,301,249
Expense reductions (See Note 7)		(136	)
Management fee waived (See Note 3)		(60,379	)
Net expenses		1,240,734
Net investment loss		(219,513	)
Net realized and unrealized gain:
Net realized gain on investments		18,902,305
Net change in unrealized appreciation/depreciation on investments		3,670,416
Net realized and unrealized gain		22,572,721
Net Increase in Net Assets Resulting From Operations	$	22,353,208

See Notes to Financial Statements.

12

Statements of Changes in Net Assets

INCREASE IN NET ASSETS	For the Year Ended December 31, 2010			For the Year Ended December 31, 2009
Operations:
Net investment loss	$	(219,513	)	$	(259,157	)
Net realized gain (loss) on investments		18,902,305			(9,276,289	)
Net change in unrealized appreciation/depreciation on investments		3,670,416			42,836,725
Net increase in net assets resulting from operations		22,353,208			33,301,279
Distributions to shareholders from:
Net realized gain		(605,004	)		—
Capital share transactions (See Note 10):
Proceeds from sales of shares		8,667,671			18,092,168
Reinvestment of distributions		605,003			—
Cost of shares reacquired		(28,443,264	)		(19,206,893	)
Net decrease in net assets resulting from capital share transactions		(19,170,590	)		(1,114,725	)
Net increase in net assets		2,577,614			32,186,554
NET ASSETS:
Beginning of year	$	107,098,402		$	74,911,848
End of year	$	109,676,016		$	107,098,402
Accumulated net investment loss	$	(8,097	)	$	(6,177	)

See Notes to Financial Statements.

13

Financial Highlights

	Year Ended 12/31
	2010			2009			2008			2007			2006
Per Share Operating Performance
Net asset value, beginning of year		$14.38			$9.88			$16.34			$14.67			$13.73
Investment operations:
Net investment loss(a)		(.03	)		(.03	)		(.06	)		(.09	)		(.04	)
Net realized and unrealized gain (loss)		3.33			4.53			(6.20	)		3.22			1.12
Total from investment operations		3.30			4.50			(6.26	)		3.13			1.08
Distributions to shareholders from:
Net realized gain		(.10	)		—			(.20	)		(1.46	)		(.14	)
Net asset value, end of year		$17.58			$14.38			$  9.88			$16.34			$14.67
Total Return(b)		22.92	%		45.55	%		(38.24	)%		21.28	%		7.89	%
Ratios to Average Net Assets:
Expenses, excluding expense reductions and including management fee waived and expenses reimbursed		1.20	%		1.20	%		1.20	%		1.20	%		1.20	%
Expenses, including expense reductions, management fee waived and expenses reimbursed		1.20	%		1.20	%		1.20	%		1.20	%		1.20	%
Expenses, excluding expense reductions, management fee waived and expenses reimbursed		1.26	%		1.33	%		1.35	%		1.31	%		1.36	%
Net investment loss		(.21	)%		(.30	)%		(.43	)%		(.55	)%		(.25	)%
Supplemental Data:
Net assets, end of year (000)		$109,676			$107,098			$74,912			$126,418			$98,888
Portfolio turnover rate		112.24	%		83.55	%		125.21	%		118.74	%		153.71	%

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

^(b) Total return does not consider the effects of sales charges or expenses imposed by an insurance company and 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 and was incorporated under Maryland law in 1989. The Company consists of twelve separate portfolios (the “Fund”). 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 has 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 the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

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 fair value.

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

(c) Investment Income–Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis as earned. Discounts are accreted and premiums are amortized using the effective interest method and are included in Interest income in the Statement of Operations. 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, 2007 through December 31, 2010. 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, the Fund may incur a loss upon disposition of the securities.

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

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

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

• Level 3 – significant unobservable inputs (including 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, 2010 in valuing the Fund’s investments carried at value:

Investment Type*	Level 1 (000)		Level 2 (000)		Level 3 (000)		Total (000)
Common Stocks	$	110,197	$	—	$	—	$	110,197
Total	$	110,197	$	—	$	—	$	110,197

* 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 rate:

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

For the fiscal year ended December 31, 2010, the effective management fee, net of waivers, was at an annualized rate of .74% of the Fund’s average daily net assets.

In addition, Lord Abbett provides certain administrative services to the Fund pursuant to an Administrative Services Agreement in return for a fee at an annual rate of .04% of the Fund’s average daily net assets.

For the period January 1, 2010 through April 30, 2010, Lord Abbett voluntarily agreed to waive all or a portion of its management fee and, if necessary, reimburse the Fund’s other expenses to the extent necessary so that total net annual operating expenses did not exceed an annualized rate of 1.20%.

For the period May 1, 2010 through April 30, 2011, Lord Abbett has contractually agreed to continue such waivers under the same terms. This agreement may be terminated only upon the approval of the Fund’s Board of Directors.

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, 2010, the Fund incurred expenses of $361,881 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.

17

Notes to Financial Statements (continued)

4.    DISTRIBUTIONS AND CAPITAL LOSS CARRYFORWARDS

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

The tax character of distributions paid during the fiscal year ended December 31, 2010 was as follows:

	Year Ended 12/31/2010		Year Ended 12/31/2009
Distributions paid from:
Net long-term capital gains	$	605,004	$	—
Total distributions paid	$	605,004	$	—

As of December 31, 2010, the components of accumulated gains on a tax-basis were as follows:

Undistributed ordinary income - net	$	1,625,156
Undistributed long-term capital gains		2,662,696
Total undistributed earnings	$	4,287,852
Temporary differences		(8,324	)
Unrealized gains—net		26,093,816
Total accumulated gains—net	$	30,373,344

As of December 31, 2010, the aggregate unrealized security gains and losses based on cost for U.S. federal income tax purposes were as follows:

Tax cost	$	84,103,496
Gross unrealized gain		26,491,685
Gross unrealized loss		(397,869	)
Net unrealized security gain	$	26,093,816

18

Notes to Financial Statements (continued)

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

Permanent items identified during the fiscal year ended December 31, 2010 have been reclassified among the components of net assets based on their tax basis treatment as follows:

Accumulated Net Investment Loss	Accumulated Net Realized Gain		Paid-in Capital
$ 217,593	$	(217,391)	$	(202)

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

On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the “Modernization Act”) was signed by the President. The Modernization Act includes numerous provisions that generally become effective for taxable years beginning after the date of enactment. Management is currently assessing the impact of the Modernization Act as it relates to the Fund.

5.    PORTFOLIO SECURITIES TRANSACTIONS

Purchases and sales of investment securities (excluding short-term investments) for the fiscal year ended December 31, 2010 were as follows:

Purchases	Sales
$114,468,838	$	132,366,460

There were no purchases or sales of U.S. Government securities for the fiscal year ended December 31, 2010.

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 an arrangement with its transfer agent and custodian, whereby credits realized as a result of uninvested cash balances are used to reduce a portion of 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. 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 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 the Fund’s exposure to foreign companies (and ADRs), 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, 2010			Year Ended December 31, 2009
Shares sold		579,790			1,566,936
Reinvestment of distributions		34,220			–
Shares reacquired		(1,823,982	)		(1,702,998	)
Decrease		(1,209,972	)		(136,062	)

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 of Growth Opportunities Portfolio, one of the portfolios constituting the Lord Abbett Series Fund, Inc. (the “Company”), including the schedule of investments, as of December 31, 2010, 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, 2010, 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 Growth Opportunities Portfolio of the Lord Abbett Series Fund, Inc. as of December 31, 2010, 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 15, 2011

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 the investment adviser provides, and annually considers whether to renew the contract with the adviser. Generally, each Director holds office until his/her successor is elected and qualified or until his/her earlier resignation or removal, as provided in the Company’s organizational documents.

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

Interested Directors

The following Directors are associated with Lord Abbett and are “interested persons” of the Company as defined in the Act. Mr. Dow and Ms. Foster are officers and directors or trustees of each of the 13 Lord Abbett-sponsored funds, which consist of 53 portfolios or series.

Name, Address and Year of Birth	Current Position and Length of Service with the Company	Principal Occupation and Other Directorships During Past Five Years
Robert S. Dow Lord, Abbett & Co. LLC 90 Hudson Street Jersey City, NJ 07302 (1945)	Director since 1995 and Chairman since 1996	Principal Occupation: Senior Partner of Lord Abbett (since 2007) and was formerly Managing Partner (1996 - 2007) and Chief Investment Officer (1995 - 2007), joined Lord Abbett in 1972. Other Directorships: None.
Daria L. Foster Lord, Abbett & Co. LLC 90 Hudson Street Jersey City, NJ 07302 (1954)	Director and President since 2006	Principal Occupation: Managing Partner of Lord Abbett (since 2007), and was formerly Director of Marketing and Client Service, joined Lord Abbett in 1990. Other Directorships: None.

Independent Directors

The following Independent Directors also are directors or trustees of each of the 13 Lord Abbett-sponsored funds, which consist of 53 portfolios or series.

Name, Address and Year of Birth	Current Position and Length of Service with the Company	Principal Occupation and Other Directorships During Past Five Years
E. Thayer Bigelow Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1941)	Director since 1994	Principal Occupation: Managing General Partner, Bigelow Media, LLC (since 2000); Senior Adviser, Time Warner Inc. (1998 - 2000). Other Directorships: Currently serves as director of Crane Co. (since 1984) and Huttig Building Products Inc. (since 1998). Previously served as a director of R.H. Donnelley Inc. (2009 - 2010) and Adelphia Communications Inc. (2003 - 2007).

22

Basic Information About Management (continued)

Name, Address and Year of Birth	Current Position and Length of Service with the Company	Principal Occupation and Other Directorships During Past Five Years
Robert B. Calhoun, Jr. Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1942)	Director since 1998	Principal Occupation: Senior Advisor of Monitor Clipper Partners, a private equity investment fund (since 1997); President of Clipper Asset Management Corp. (1991 - 2009). Other Directorships: Previously served as a director of Avondale, Inc. (1991 - 2005) and Interstate Bakeries Corp. (1991 - 2008).
Evelyn E. Guernsey Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1955)	Director since 2011	Principal Occupation: CEO, Americas of J.P. Morgan Asset Management (2004 - 2010). Other Directorships: None.
Julie A. Hill Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1946)	Director since 2004	Principal Occupation: Owner and CEO of The Hill Company, a business consulting firm (since 1998). Other Directorships: Currently serves as director of WellPoint, Inc., a health benefits company (since 1994). Previously served as a director of Resources Connection, Inc., a consulting firm (2004 - 2007).
Franklin W. Hobbs Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1947)	Director since 2001	Principal Occupation: Advisor of One Equity Partners, a private equity firm (since 2004). Other Directorships: Currently serves as a director and Chairman of the Board of Ally Financial 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	Principal Occupation: Chairman of Spencer Stuart (U.S.), an executive search consulting firm (since 1996). Other Directorships: Currently serves as director of Ace, Ltd. (since 1997). Previously served as a director of Hewitt Associates, Inc. (2004 - 2010).
James L.L. Tullis Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1947)	Director since 2006	Principal Occupation: CEO of Tullis-Dickerson and Co. Inc., a venture capital management firm (since 1990). Other Directorships: Currently serves as director of Crane Co. (since 1998). Previously served as a director of Viacell Inc. (2003 - 2007).

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 also may be officers of the other Lord Abbett-sponsored funds and maintain offices at 90 Hudson Street, Jersey City, NJ 07302. Unless otherwise indicated, the position(s) and title(s) listed under the “Principal Occupation” column indicate each officer’s position(s) and title(s) with Lord Abbett.

Name and Year of Birth	Current Position with the 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 of Lord Abbett (since 2007), and was formerly Managing Partner (1996 - 2007) and Chief Investment Officer (1995 - 2007), joined Lord Abbett in 1972.
Daria L. Foster (1954)	President	Elected in 2006	Managing Partner of Lord Abbett (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.
Robert A. Lee (1969)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 1997.
Vincent J. McBride (1964)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 2003.
Andrew H. O’Brien (1973)	Executive Vice President	Elected in 2010	Partner and Portfolio Manager, joined Lord Abbett in 1998.
F. Thomas O’Halloran, III (1955)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 2001.
Harold E. Sharon (1960)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 2003.

24

Basic Information About Management (continued)

Name and Year of Birth	Current Position with the Company	Length of Service of Current Position	Principal Occupation During Past Five Years
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.
A. Edward Allinson (1961)	Vice President	Elected in 2011	Portfolio Manager, joined Lord Abbett in 2005.
Sean J. Aurigemma (1969)	Vice President	Elected in 2010	Portfolio Manager, joined Lord Abbett in 2007 and was formerly a Managing Director and Portfolio Manager at Morgan Stanley (1999 - 2007).
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.
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	Partner and Director, joined Lord Abbett in 2001.

25

Basic Information About Management (continued)

Name and Year of Birth	Current Position with the Company	Length of Service of Current Position	Principal Occupation During Past Five Years
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).
Thomas B. Maher (1967)	Vice President	Elected in 2010	Partner and Portfolio Manager, joined Lord Abbett in 2003.
Justin C. Maurer (1969)	Vice President	Elected in 2010	Partner and Portfolio Manager, joined Lord Abbett in 2001.
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	Partner and Senior Deputy General Counsel, joined Lord Abbett in 2007 and was formerly an Executive Vice President and the General Counsel at Cohen & Steers Capital Management, Inc. (1999 - 2007).
Francis T. Timons (1969)	Vice President	Elected in 2010	Portfolio Manager, joined Lord Abbett in 2007 and was formerly a Research Analyst at Robert W. Baird & Co. (2004 - 2007).

26

Basic Information About Management (concluded)

Name and Year of Birth	Current Position with the Company	Length of Service of Current Position	Principal Occupation During Past Five Years
Arthur K. Weise (1970)	Vice President	Elected in 2010	Portfolio Manager, joined Lord Abbett in 2007 and was formerly a Managing Director, Portfolio Manager and Analyst at Bank of New York Institutional Asset Management (2005 - 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 15 and 16, 2010, 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, including information about the investment performance of the Fund compared to the performance of its benchmark, 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 the results of the examination of the portfolio management team by members of the Contract Committee during the year, which included a meeting with the portfolio management team. Additionally, the Board took into consideration its familiarity with Lord Abbett gained through its previous meetings and discussions during the course of the year.

The materials received by the Board included, but were not limited to: (1) information provided by Lipper Inc. (“Lipper”) regarding the investment performance of the Fund compared to the investment performance of one or more groups of funds with substantially similar investment objectives, including a group of funds within the same investment classification/objective (each group a “performance universe”) and to the investment performance of an appropriate fund index; (2) information on the expense ratios, effective management fee rates, and other expense components for the Fund and similar funds (the “peer group”); (3) information provided by Lord Abbett on the projected expense ratios, management fee rates, and other expense components for the Fund; (4) sales and redemption information for the Fund; (5) information regarding Lord Abbett’s financial condition; (6) an analysis of the relative profitability of the management agreement to Lord Abbett; (7) information provided by Lord Abbett regarding the investment management fees Lord Abbett receives from its other advisory clients maintaining accounts with a similar investment strategy as the Fund; (8) information regarding the distribution arrangements of the Fund; and (9) 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 previously had 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 observed that the investment performance of the Fund was in the fifth quintile of its performance universe for the nine-month and one-year periods, the first quintile for the three-year period, and 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 and one-year periods and higher than that of the Index for the three-year and five-year periods. The Board also noted that the Fund’s investment objective, strategy, and investment team were

28

identical to those of 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.

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 also 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 observed that for the fiscal year ended December 31, 2009 the contractual management and administrative services fees were approximately seven basis points above the median of the peer group and the actual management and administrative services fees were approximately four basis points below the median of the peer group. The Board observed that for the fiscal year ended December 31, 2009 the total expense ratio of the Fund was approximately one basis point above the median of the peer group. The Board noted that effective May 1, 2010 it and Lord Abbett had entered into an expense limitation agreement that had the effect of limiting the total expense ratio to 1.20% of average daily net assets, that Lord Abbett proposed to renew the agreement through April 30, 2012, and that this expense ratio was the same as that in the peer group comparisons.

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 increased in its 2010 fiscal year. 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

29

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.

Tax Information

All of the distributions paid to shareholders during the year ended December 31, 2010 represents long-term capital gains.

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-2-1210

(02/11)

2010

LORD ABBETT

ANNUAL

REPORT    

Lord Abbett

Series Fund—International

Core Equity Portfolio

For the fiscal period ended December 31, 2010

Lord Abbett Series Fund — International Core Equity Portfolio*

Annual Report

For the fiscal period ended December 31, 2010

*    The Fund commenced operations on April 16, 2010, and investment performance began on May 1, 2010.

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 performance of the Lord Abbett Series Fund — International Core Equity Portfolio for the period ended December 31, 2010. 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

For the eight-month period ended December 31, 2010, the Fund returned 7.79%, reflecting performance at the net asset value (NAV) of Class VC shares, with all distributions reinvested, compared to its benchmark, the MSCI EAFE^® Index with Gross Dividends,¹ which returned 9.08% over the same period.

Global markets had a volatile run during this period, with developed markets, specifically the eurozone, faring worse compared with global emerging markets. While the eurozone endeavors to resolve investors’ concerns about peripheral Europe (i.e., Greece, Spain, Portugal, and Ireland), growth is more evident in the Asian economies (excluding Japan) and in Latin America, where debt levels and government finances generally were lower than those in Europe.

Overall, currency volatility, most notably in the Japanese yen and the Korean won, had a negative effect on Fund performance during the fiscal period and was the primary reason for the Fund’s relative underperformance. From a sector

1

point of view, the consumer staples and health care sectors were the largest detractors from Fund performance. Within the consumer staples sector, shares of Central European Distribution Corporation, a Poland-based distributor of alcoholic beverages, dropped in the second quarter after the company lowered earnings expectations for the fiscal year 2010. The vodka market, the company’s primary market, has been challenging, and sales have declined. Additionally, shares of Japan Tobacco Inc., a Japan-based company engaged in the manufacturing and marketing of tobacco, fell due to both macro and micro issues—from investors’ concerns about the weakening euro to falling sales in Russia. Within the health care sector, the Fund was negatively affected by its stocks that are denominated in Japanese yen and Israel shekel, given their recent currency volatility.

The Fund’s exposure to emerging markets, both directly and indirectly (by owning global companies deriving revenues from emerging markets), contributed significantly to the Fund’s returns. The Fund benefited from strong stock selection, particularly in the industrials and materials sectors. Within the industrials sector, shares of Weichai Power Co., Ltd., a China-based automobile and component manufacturer, were propelled by a strong rally in the latter part of the financial year due to record-high sales, particularly in the heavy-duty truck sector, where Weichai Power Co. Ltd. has a strong market share, and also benefited from improved cost controls. In addition, shares of Deutsche Lufthansa AG, a Germany-based airline operator, rose due to the strong volume of passenger traffic, particularly in Europe, Africa, and the Middle East. Within the materials sector, shares of Yara International ASA, a Norway-based chemical company whose chemicals are used to make nitrogen fertilizer, benefited from increased demand for fertilizer as a result of both low supplies of and an increased demand for grain.

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 (Europe, Australasia, Far East) is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the United States and Canada. As of May 27, 2010, the MSCI EAFE^® Index consisted of the following 22 developed market country indexes: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom.

The MSCI EAFE^® Index is calculated with both gross and net dividends. 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.

2

Unless otherwise specified, the index reflects total return, with all dividends reinvested. The index is unmanaged, does not reflect the deduction of fees or expenses, and is not available for direct investment.

Important Performance and Other Information

Performance data quoted in the following pages reflect past performance and are no guarantee of future results. Current performance may be higher or lower than the performance quoted. The investment return and principal value of an investment in 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 shown, 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 above are as of December 31, 2010; 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 Morgan Stanley Capital International Europe, Australasia, Far East Index (MSCI EAFE^® Index) with Gross Dividends and the MSCI EAFE^® Index with Net Dividends, 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 the period, expenses of the Fund were waived or reimbursed by Lord Abbett; without such waiver or reimbursement of expenses, the Fund’s returns would have been lower. Past performance is no guarantee of future results.

Total Return for the

Period Ended December 31, 2010

	Life of Class
Class VC2		7.79%	*

¹    Performance for each unmanaged index does not reflect any fees or expenses. The performance of each index is not necessarily representative of the Fund’s performance. Performance for each index began on April 30, 2010.

²    The Class VC shares commenced operations on April 16, 2010. Performance for the Class began on May 1, 2010.

*    Because Class VC shares have existed for less than one year, average annual returns are not provided.

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, 2010 through December 31, 2010).

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 7/1/10 – 12/31/10” 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†
	7/1/10		12/31/10		7/1/10 - 12/31/10
Class VC
Actual	$	1,000.00	$	1,236.70	$	4.90
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.85	$	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).

Portfolio Holdings Presented by Sector

December 31, 2010

Sector*	%**
Consumer Discretionary		13.87%
Consumer Staples		8.27%
Energy		7.00%
Financials		18.47%
Health Care		4.57%
Industrials		15.97%
Information Technology		8.11%
Materials		13.39%
Telecommunication Services		5.52%
Utilities		4.83%
Total		100.00%

* A sector may comprise several industries.

** Represents percent of total investments.

6

Schedule of Investments

December 31, 2010

Investments	Shares		U.S. $ Value
COMMON STOCKS 98.57%
Australia 2.00%
Multi-Line Retail 0.99%
Myer Holdings Ltd.		1,588	$	5,766
Road & Rail 1.01%
QR National Ltd.*		2,103		5,915
Total Australia				11,681
Belgium 1.37%
Beverages
Anheuser-Busch InBev NV		140		8,007
Brazil 5.96%
Commercial Banks 2.74%
Banco do Brasil SA		449		8,499
Banco Santander Brasil SA ADR		555		7,548
				16,047
Household Durables 1.01%
PDG Realty SA Empreendimentos e Participacoes		964		5,900
Real Estate Management & Development 0.55%
BR Malls Participacoes SA		310		3,193
Water Utilities 1.66%
Companhia de Saneamento Basico do Estado de Sao Paulo ADR*		184		9,730
Total Brazil				34,870
Canada 3.01%
Metals & Mining 1.39%
First Quantum Minerals Ltd.		75		8,146
Oil, Gas & Consumable Fuels 1.62%
Bankers Petroleum Ltd.*		605		4,624

Investments	Shares		U.S. $ Value
Canadian Oil Sands Trust Unit		100	$	2,660
Questerre Energy Corp.*		1,055		2,164
				9,448
Total Canada				17,594
China 1.05%
Machinery
Changsha Zoomlion Heavy Industry Science & Technology Development Co., Ltd. H Shares*		1,200		2,711
Weichai Power Co., Ltd. H Shares		556		3,423
Total China				6,134
Denmark 0.79%
Beverages
Carlsberg AS Class B		46		4,617
France 5.04%
Aerospace & Defense 1.17%
Safran SA		193		6,835
Construction & Engineering 1.22%
Vinci SA		131		7,121
Electrical Equipment 0.47%
Alstom SA		57		2,728
Insurance 0.67%
AXA SA		237		3,943
Multi-Line Retail 1.11%
PPR		41		6,520
Pharmaceuticals 0.40%
Sanofi-Aventis SA ADR		73		2,353
Total France				29,500

See Notes to Financial Statements.

7

Schedule of Investments (continued)

December 31, 2010

Investments	Shares		U.S. $ Value
Germany 8.07%
Air Freight & Logistics 1.11%
Deutsche Post AG Registered Shares		384	$	6,515
Airlines 0.66%
Deutsche Lufthansa AG Registered Shares*		179		3,894
Automobiles 0.58%
Daimler AG Registered Shares*		50		3,379
Diversified Telecommunication Services 0.51%
Deutsche Telekom AG Registered Shares		230		2,965
Household Products 1.03%
Henkel KGaA		117		6,032
Industrial Conglomerates 0.68%
Siemens AG Registered Shares		32		3,964
Machinery 0.94%
GEA Group AG		191		5,520
Semiconductors & Semiconductor Equipment 1.29%
Dialog Semiconductor plc*		331		7,528
Software 1.27%
SAP AG		146		7,446
Total Germany				47,243
Greece 0.59%
Electric: Utilities
Public Power Corp. SA		241		3,472
Hong Kong 5.01%
Chemicals 0.93%
Huabao International Holdings Ltd.		3,368		5,451

Investments	Shares		U.S. $ Value
Real Estate Management & Development 2.05%
Hysan Development Co., Ltd.		1,400	$	6,592
Wharf Holdings Ltd. (The)		700		5,386
				11,978
Specialty Retail 1.20%
GOME Electrical Appliances Holdings Ltd.*		19,400		6,989
Water Utilities 0.83%
Guangdong Investment Ltd.		9,480		4,879
Total Hong Kong				29,297
Indonesia 2.38%
Commercial Banks 0.80%
PT Bank Negara Indonesia (Persero) Tbk		10,894		4,675
Diversified Telecommunication Services 0.73%
PT Telekomunikasi Indonesia Tbk		4,850		4,279
Oil, Gas & Consumable Fuels 0.85%
PT Bumi Resources Tbk		14,890		4,988
Total Indonesia				13,942
Ireland 1.45%
Information Technology Services
Accenture plc Class A		175		8,486
Israel 2.44%
Chemicals 0.97%
Israel Chemicals Ltd.		330		5,652
Pharmaceuticals 1.47%
Teva Pharmaceutical Industries Ltd. ADR		165		8,602
Total Israel				14,254

See Notes to Financial Statements.

8

Schedule of Investments (continued)

December 31, 2010

Investments	Shares		U.S. $ Value
Italy 1.28%
Commercial Banks 0.68%
Intesa Sanpaolo SpA		1,473	$	4,005
Diversified Telecommunication Services 0.60%
Telecom Italia SpA		2,694		3,495
Total Italy				7,500
Japan 14.48%
Auto Components 1.19%
Bridgestone Corp.		361		6,949
Automobiles 1.79%
Honda Motor Co., Ltd.		265		10,459
Chemicals 1.13%
Asahi Kasei Corp.		1,015		6,602
Commercial Banks 1.19%
Bank of Yokohama Ltd. (The)		1,355		6,987
Consumer Finance 0.74%
ORIX Corp.		44		4,311
Electronic Equipment, Instruments & Components 1.47%
Nippon Electric Glass Co., Ltd.		600		8,612
Household Durables 1.40%
Sony Corp.		230		8,226
Machinery 1.33%
NSK Ltd.		865		7,779
Oil, Gas & Consumable Fuels 1.04%
JX Holdings, Inc.		900		6,090
Trading Companies & Distributors 3.20%
Mitsui & Co., Ltd.		540		8,885
Sumitomo Corp.		700		9,854
				18,739
Total Japan				84,754

Investments	Shares		U.S. $ Value
Luxembourg 0.60%
Metals & Mining
ArcelorMittal		92	$	3,489
Netherlands 3.17%
Diversified Financial Services 1.25%
ING Groep NV CVA*		753		7,325
Food & Staples Retailing 0.59%
Koninklijke Ahold NV		263		3,471
Industrial Conglomerates 1.33%
Koninklijke Philips Electronics NV		253		7,749
Total Netherlands				18,545
Norway 3.82%
Chemicals 1.99%
Yara International ASA		200		11,642
Commercial Banks 1.01%
DnB NOR ASA		418		5,880
Specialty Retail 0.82%
Statoil Fuel & Retail ASA*		528		4,823
Total Norway				22,345
Singapore 3.06%
Airlines 1.02%
Singapore Airlines Ltd.		500		5,961
Commercial Banks 1.14%
DBS Group Holdings Ltd.		596		6,650
Industrial Conglomerates 0.90%
Keppel Corp., Ltd.		600		5,292
Total Singapore				17,903
South Korea 2.98%
Auto Components 1.54%
Hyundai Mobis		36		9,014

See Notes to Financial Statements.

9

Schedule of Investments (continued)

December 31, 2010

Investments	Shares		U.S. $ Value
South Korea (continued)
Diversified Telecommunication Services 0.87%
KT Corp.		126	$	5,117
Semiconductors & Semiconductor Equipment 0.57%
Samsung Electronics Co., Ltd.		4		3,341
Total South Korea				17,472
Sweden 1.44%
Communications Equipment
Telefonaktiebolaget LM Ericsson ADR		730		8,417
Switzerland 2.45%
Chemicals 1.10%
Syngenta AG Registered Shares		22		6,449
Food Products 1.35%
Nestle SA Registered Shares		135		7,909
Total Switzerland				14,358
Taiwan 0.68%
Computers & Peripherals
Wistron Corp.		1,950		3,973
Thailand 1.01%
Commercial Banks
Bangkok Bank Public Co., Ltd.		1,170		5,918
Turkey 1.61%
Automobiles 0.58%
Ford Otomotiv Sanayi AS		403		3,406
Diversified Telecommunication Services 1.03%
Turk Telekomunikasyon AS		1,427		6,007
Total Turkey				9,413

Investments	Shares		U.S. $ Value
United Kingdom 22.83%
Commercial Banks 3.20%
Barclays plc		1,821	$	7,429
HSBC Holdings plc ADR		221		11,280
				18,709
Food & Staples Retailing 1.02%
Tesco plc		903		5,983
Insurance 1.57%
Aviva plc		502		3,076
Prudential plc		588		6,124
				9,200
Media 1.76%
Reed Elsevier plc		473		3,993
WPP plc		513		6,315
				10,308
Metals & Mining 5.38%
Anglo American plc		236		12,273
Vedanta Resources plc		243		9,536
Xstrata plc		411		9,647
				31,456
Multi-Utilities 1.16%
National Grid plc		788		6,794
Oil, Gas & Consumable Fuels 3.55%
BG Group plc		380		7,678
Tullow Oil plc		666		13,094
				20,772
Pharmaceuticals 1.19%
GlaxoSmithKline plc ADR		178		6,981
Tobacco 2.18%
British American Tobacco plc		138		5,300
Imperial Tobacco Group plc		242		7,425
				12,725

See Notes to Financial Statements.

10

Schedule of Investments (concluded)

December 31, 2010

Investments	Shares		U.S. $ Value
United Kingdom (continued)
Wireless Telecommunication Services 1.82%
Vodafone Group plc		4,129	$	10,673
Total United Kingdom				133,601
Total Common Stocks (cost $538,479)				576,785
PREFERRED STOCKS 2.15%
Brazil 0.61%
Independent Power Producers & Energy Traders
Companhia Energetica de Sao Paulo B Shares		220		3,578
Germany 1.54%
Health Care Equipment & Supplies
Fresenius SE		105		8,996
Total Preferred Stocks (cost $11,882)				12,574
Total Investments in Securities 100.72% (cost $550,361)			$	589,359
Liabilities in Excess of Cash, Foreign Cash and Other Assets (0.72)%				(4,187	)
Net Assets 100%			$	585,172

ADR	American Depositary Receipt.
Unit	More than one class of securities traded together.
*	Non-income producing security.

See Notes to Financial Statements.

11

Statement of Assets and Liabilities

December 31, 2010

ASSETS:
Investments in securities, at value (cost $550,361)	$	589,359
Cash		63,648
Foreign cash, at value (cost $3,248)		3,274
Receivables:
From advisor (See Note 3)		37,309
Interest and dividends		1,093
Investment securities sold		1,070
Prepaid expenses		3,123
Total assets		698,876
LIABILITIES:
Payables:
Investment securities purchased		34,986
Offering costs		4,518
Management fee		336
Capital shares reacquired		245
Fund administration		18
Directors’ fees		7
Accrued expenses and other liabilities		73,594
Total liabilities		113,704
NET ASSETS	$	585,172
COMPOSITION OF NET ASSETS:
Paid-in capital	$	549,028
Distributions in excess of net investment income		(374	)
Accumulated net realized loss on investments and foreign currency related transactions		(2,418	)
Net unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies		38,936
Net Assets	$	585,172
Outstanding shares (50 million shares of common stock authorized, $.001 par value)		37,235
Net asset value, offering and redemption price per share (Net assets divided by outstanding shares)		$15.72

See Notes to Financial Statements.

12

Statement of Operations

For the Period Ended December 31, 2010*

Investment income:
Dividends (net of foreign withholding taxes of $311)	$	4,278
Interest and other		5
Total investment income		4,283
Expenses:
Management fee		1,688
Shareholder servicing		1,970
Custody		75,759
Professional		41,682
Offering costs		7,430
Reports to shareholders		6,000
Fund administration		90
Directors’ fees		10
Other		9,951
Gross expenses		144,580
Management fee waived and expenses reimbursed (See Note 3)		(142,621	)
Net expenses		1,959
Net investment income		2,324
Net realized and unrealized gain (loss):
Net realized loss on investments and foreign currency related transactions		(3,016	)
Net change in unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies		38,936
Net realized and unrealized gain		35,920
Net Increase in Net Assets Resulting From Operations	$	38,244

* For the period April 16, 2010 (commencement of operations) to December 31, 2010.

See Notes to Financial Statements.

13

Statement of Changes in Net Assets

INCREASE IN NET ASSETS	For the Period Ended December 31, 2010*
Operations:
Net investment income	$	2,324
Net realized loss on investments and foreign currency related transactions		(3,016	)
Net change in unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies		38,936
Net increase in net assets resulting from operations		38,244
Distributions to shareholders from:
Net investment income		(2,100	)
Capital share transactions (See Note 10):
Proceeds from sales of shares		562,066
Reinvestment of distributions		2,099
Cost of shares reacquired		(15,137	)
Net increase in net assets resulting from capital share transactions		549,028
Net increase in net assets		585,172
NET ASSETS:
Beginning of period	$	–
End of period	$	585,172
Distributions in excess of net investment income	$	(374	)

* For the period April 16, 2010 (commencement of operations) to December 31, 2010.

See Notes to Financial Statements.

14

Financial Highlights

	4/16/2010(a) to 12/31/2010
Per Share Operating Performance
Net asset value, beginning of period		$15.00
Investment operations:
Net investment income(b)		.01
Net realized and unrealized loss		(.37	)
Total from investment operations		(.36	)
Net asset value, on SEC Effective Date, 5/1/2010		$14.64
Investment operations:
Net investment income(b)		.10
Net realized and unrealized gain		1.04
Total from investment operations		1.14
Distributions to shareholders from:
Net investment income		(.06	)
Net asset value, end of period		$15.72
Total Return(c)		5.20	%(d)(e)
Total Return(c)		7.79	%(d)(f)
Ratios to Average Net Assets:
Expenses, excluding expense reductions and including management fee waived and expenses reimbursed		.87	%(g)
Expenses, including expense reductions, management fee waived and expenses reimbursed		.87	%(g)
Expenses, excluding expense reductions, management fee waived and expenses reimbursed		63.34	%(g)
Net investment income		1.02	%(g)
Supplemental Data:
Net assets, end of period (000)		$585
Portfolio turnover rate		50.25	%

^(a) Commencement of operations was 4/16/2010, SEC effective date and date shares first became available to the public was 5/1/2010.

^(b) Calculated using average shares outstanding during the period.

^(c) Total return does not consider the effects of sales charges or other expenses imposed by an insurance company and assumes the reinvestment of all distributions.

^(d) Not annualized.

^(e) Total return for the period 4/16/10 through 12/31/10.

^(f) Total return for the period 5/1/10 through 12/31/10.

^(g) Annualized.

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 and was incorporated under Maryland law in 1989. The Company consists of twelve separate portfolios (the “Funds”). This report covers International Core Equity Portfolio (the “Fund”). The Fund commenced operations on April 16, 2010. The Fund became effective with the SEC and first made shares available to the public on May 1, 2010. The Fund is diversified as defined in the Act.

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

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 fair value.

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

(c) Investment Income–Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis as earned. Discounts are accreted and premiums are amortized using the effective interest method and are included in Interest and other income in the Statement of Operations. 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.

16

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 period ended December 31, 2010. 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 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) 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, the Fund may incur a loss upon disposition of the securities.

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

17

Notes to Financial Statements (continued)

assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below:

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

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

• Level 3 - significant unobservable inputs (including 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, 2010 in valuing the Fund’s investments carried at value:

Investment Type*	Level 1		Level 2		Level 3		Total
Common Stocks	$	576,785	$	–	$	–	$	576,785
Preferred Stocks		12,574		–		–		12,574
Total	$	589,359	$	–	$	–	$	589,359

* 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 rate:

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

For the fiscal period ended December 31, 2010, the effective management fee, net of waivers and expenses reimbursed, was at an annualized rate of .00% of the Fund’s average daily net assets.

In addition, Lord Abbett provides certain administrative services to the Fund pursuant to an Administrative Services Agreement in return for a fee at an annual rate of .04% of the Fund’s average daily net assets.

For the period April 16, 2010 to April 30, 2010, Lord Abbett voluntarily agreed to waive all or a portion of its management fee and, if necessary, reimburse the Fund’s other expenses to the extent necessary so that total net annual operating expenses do not exceed an annualized rate of .87%.

For the period May 1, 2010 through April 30, 2011, Lord Abbett has contractually agreed to continue such waivers under the same terms. This agreement may be terminated only upon the approval of the Fund’s Board of Directors.

18

Notes to Financial Statements (continued)

The Company, on behalf of the Fund, may enter 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 period ended December 31, 2010, the Fund incurred expenses of $650 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 semi-annually. Taxable net realized gains from investment transactions, reduced by allowable capital loss carryforwards, if any, are declared and distributed to shareholders at least annually. The capital loss carryforward amount, if any, is available to offset future net capital gains. Dividends and distributions to shareholders are recorded on the ex-dividend date. The amounts of dividends and distributions from net investment income and net realized capital gains are determined in accordance with federal income tax regulations, which may differ from accounting principles generally accepted in the United States of America. These book/tax differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the components of net assets based on their federal tax basis treatment; temporary differences do not require reclassification. Dividends and distributions, which exceed earnings and profits for tax purposes, are reported as a tax return of capital.

The tax character of distributions paid during the fiscal period ended December 31, 2010 was as follows:

	Period Ended 12/31/2010*
Distributions paid from:
Ordinary income	$	2,100
Total distributions paid	$	2,100

* For the period April 16, 2010 (commencement of operations) to December 31, 2010.

As of December 31, 2010, the components of accumulated gains on a tax-basis were as follows:

Undistributed ordinary income - net	$	267
Total undistributed earnings	$	267
Capital loss carryforward*		(814	)
Temporary differences		(7	)
Unrealized gains—net		36,698
Total accumulated gains—net	$	36,144

* As of December 31, 2010, the capital loss carryforward, along with the related expiration date, was as follow:

2018		Total
	$814	$	814

19

Notes to Financial Statements (continued)

As of December 31, 2010, the aggregate unrealized security gains and losses based on cost for U.S. federal income tax purposes were as follows:

Tax cost	$	552,467
Gross unrealized gain		42,317
Gross unrealized loss		(5,425	)
Net unrealized security gain	$	36,892

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

Permanent items identified during the fiscal period ended December 31, 2010 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
$(598)	$	598

The permanent difference is attributable to the tax treatment of foreign currency transactions.

On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the “Modernization Act”) was signed by the President. The Modernization Act includes numerous provisions that generally become effective for taxable years beginning after the date of enactment. Management is currently assessing the impact of the Modernization Act as it relates to the Fund.

5.    PORTFOLIO SECURITIES TRANSACTIONS

Purchases and sales of investment securities (excluding short-term investments) for the period ended December 31, 2010 were as follows:

Purchases	Sales
$714,672	$	161,744

There were no purchases or sales of U.S. Government securities for the fiscal period ended December 31, 2010.

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.

20

Notes to Financial Statements (concluded)

7.    EXPENSE REDUCTIONS

The Company has entered into an arrangement with its transfer agent and custodian, whereby credits realized as a result of uninvested cash balances are used to reduce a portion of 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 markets in general and to the changing prospects of individual companies in which the Fund invests.

Large company value stocks, in which the Fund invests, may perform differently than the market as a whole and other types of stocks, such as small company stocks and growth stocks.

The Fund is subject to the risks of investing in foreign securities, the securities of large foreign companies, and derivatives. 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. These risks are generally greater for securities issued by companies in emerging market countries.

The Fund is also subject to the risks associated with derivatives, which may be different from and greater than the risks associated with investing directly in securities and other investments.

These factors can affect the Fund’s performance.

10.    SUMMARY OF CAPITAL TRANSACTIONS

Transactions in shares of capital stock were as follows:

	Period Ended December 31,  2010†
Shares sold		38,067
Reinvestment of distributions		135
Shares reacquired		(967	)
Increase		37,235

^† For the period April 16, 2010 (commencement of operations) to December 31, 2010.

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 of International Core Equity Portfolio, one of the portfolios constituting the Lord Abbett Series Fund, Inc. (the “Company”), including the schedule of investments, as of December 31, 2010, and the related statement of operations, changes in net assets, and the financial highlights for the period from April 16, 2010 (commencement of operations) to December 31, 2010. 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 audit.

We conducted our audit 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 audit 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, 2010, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audit provides 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 International Core Equity Portfolio of the Lord Abbett Series Fund, Inc. as of December 31, 2010, the results of its operations, the changes in its net assets, and financial highlights for period from April 16, 2010 (commencement of operations) through December 31, 2010, in conformity with accounting principles generally accepted in the United States of America.

DELOITTE & TOUCHE LLP

New York, New York

February 15, 2011

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 the investment adviser provides, and annually considers whether to renew the contract with the adviser. Generally, each Director holds office until his/her successor is elected and qualified or until his/her earlier resignation or removal, as provided in the Company’s organizational documents.

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

Interested Directors

The following Directors are associated with Lord Abbett and are “interested persons” of the Company as defined in the Act. Mr. Dow and Ms. Foster are officers and directors or trustees of each of the 13 Lord Abbett-sponsored funds, which consist of 53 portfolios or series.

Name, Address and Year of Birth	Current Position and Length of Service with the Company	Principal Occupation and Other Directorships During Past Five Years
Robert S. Dow Lord, Abbett & Co. LLC 90 Hudson Street Jersey City, NJ 07302 (1945)	Director since 1995 and Chairman since 1996	Principal Occupation: Senior Partner of Lord Abbett (since 2007) and was formerly Managing Partner (1996 - 2007) and Chief Investment Officer (1995 - 2007), joined Lord Abbett in 1972. Other Directorships: None.
Daria L. Foster Lord, Abbett & Co. LLC 90 Hudson Street Jersey City, NJ 07302 (1954)	Director and President since 2006	Principal Occupation: Managing Partner of Lord Abbett (since 2007), and was formerly Director of Marketing and Client Service, joined Lord Abbett in 1990. Other Directorships: None.

Independent Directors

The following Independent Directors also are directors or trustees of each of the 13 Lord Abbett-sponsored funds, which consist of 53 portfolios or series.

Name, Address and Year of Birth	Current Position and Length of Service with the Company	Principal Occupation and Other Directorships During Past Five Years
E. Thayer Bigelow Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1941)	Director since 1994	Principal Occupation: Managing General Partner, Bigelow Media, LLC (since 2000); Senior Adviser, Time Warner Inc. (1998 - 2000). Other Directorships: Currently serves as director of Crane Co. (since 1984) and Huttig Building Products Inc. (since 1998). Previously served as a director of R.H. Donnelley Inc. (2009 - 2010) and Adelphia Communications Inc. (2003 - 2007).

23

Basic Information About Management (continued)

Name, Address and Year of Birth	Current Position and Length of Service with the Company	Principal Occupation and Other Directorships During Past Five Years
Robert B. Calhoun, Jr. Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1942)	Director since 1998	Principal Occupation: Senior Advisor of Monitor Clipper Partners, a private equity investment fund (since 1997); President of Clipper Asset Management Corp. (1991 - 2009). Other Directorships: Previously served as a director of Avondale, Inc. (1991 - 2005) and Interstate Bakeries Corp. (1991 - 2008).
Evelyn E. Guernsey Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1955)	Director since 2011	Principal Occupation: CEO, Americas of J.P. Morgan Asset Management (2004 - 2010). Other Directorships: None.
Julie A. Hill Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1946)	Director since 2004	Principal Occupation: Owner and CEO of The Hill Company, a business consulting firm (since 1998). Other Directorships: Currently serves as director of WellPoint, Inc., a health benefits company (since 1994). Previously served as a director of Resources Connection, Inc., a consulting firm (2004 - 2007).
Franklin W. Hobbs Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1947)	Director since 2001	Principal Occupation: Advisor of One Equity Partners, a private equity firm (since 2004). Other Directorships: Currently serves as a director and Chairman of the Board of Ally Financial 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	Principal Occupation: Chairman of Spencer Stuart (U.S.), an executive search consulting firm (since 1996). Other Directorships: Currently serves as director of Ace, Ltd. (since 1997). Previously served as a director of Hewitt Associates, Inc. (2004 - 2010).
James L.L. Tullis Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1947)	Director since 2006	Principal Occupation: CEO of Tullis-Dickerson and Co. Inc., a venture capital management firm (since 1990). Other Directorships: Currently serves as director of Crane Co. (since 1998). Previously served as a director of Viacell Inc. (2003 - 2007).

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 also may be officers of the other Lord Abbett-sponsored funds and maintain offices at 90 Hudson Street, Jersey City, NJ 07302. Unless otherwise indicated, the position(s) and title(s) listed under the “Principal Occupation” column indicate each officer’s position(s) and title(s) with Lord Abbett.

Name and Year of Birth	Current Position with the 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 of Lord Abbett (since 2007), and was formerly Managing Partner (1996 - 2007) and Chief Investment Officer (1995 - 2007), joined Lord Abbett in 1972.
Daria L. Foster (1954)	President	Elected in 2006	Managing Partner of Lord Abbett (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.
Robert A. Lee (1969)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 1997.
Vincent J. McBride (1964)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 2003.
Andrew H. O’Brien (1973)	Executive Vice President	Elected in 2010	Partner and Portfolio Manager, joined Lord Abbett in 1998.
F. Thomas O’Halloran, III (1955)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 2001.
Harold E. Sharon (1960)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 2003.
Christopher J. Towle (1957)	Executive Vice President	Elected in 1999	Partner and Director, joined Lord Abbett in 1987.

25

Basic Information About Management (continued)

Name and Year of Birth	Current Position with the Company	Length of Service of Current Position	Principal Occupation During Past Five Years
Paul J. Volovich (1973)	Executive Vice President	Elected in 2005	Partner and Director, joined Lord Abbett in 1997.
A. Edward Allinson (1961)	Vice President	Elected in 2011	Portfolio Manager, joined Lord Abbett in 2005.
Sean J. Aurigemma (1969)	Vice President	Elected in 2010	Portfolio Manager, joined Lord Abbett in 2007 and was formerly a Managing Director and Portfolio Manager at Morgan Stanley (1999 - 2007).
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.
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	Partner and Director, 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).

26

Basic Information About Management (concluded)

Name and Year of Birth	Current Position with the Company	Length of Service of Current Position	Principal Occupation During Past Five Years
Thomas B. Maher (1967)	Vice President	Elected in 2010	Partner and Portfolio Manager, joined Lord Abbett in 2003.
Justin C. Maurer (1969)	Vice President	Elected in 2010	Partner and Portfolio Manager, joined Lord Abbett in 2001.
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	Partner and Senior Deputy General Counsel, joined Lord Abbett in 2007 and was formerly an Executive Vice President and the General Counsel at Cohen & Steers Capital Management, Inc. (1999 - 2007).
Francis T. Timons (1969)	Vice President	Elected in 2010	Portfolio Manager, joined Lord Abbett in 2007 and was formerly a Research Analyst at Robert W. Baird & Co. (2004 - 2007).
Arthur K. Weise (1970)	Vice President	Elected in 2010	Portfolio Manager, joined Lord Abbett in 2007 and was formerly a Managing Director, Portfolio Manager and Analyst at Bank of New York Institutional Asset Management (2005 - 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 March 3, 2010, 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 proposed management agreement between the Fund and Lord Abbett. 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. Additionally, the Board took into consideration its familiarity with Lord Abbett gained through its previous meetings and discussions.

The materials received by the Board included, but were not limited to: (1) information provided by Lipper Inc. regarding the effective management fee rates and expense ratios for one or more groups of funds with similar objectives and of similar size (the “peer expense group”); and (2) information regarding the personnel and other resources devoted by Lord Abbett to managing the Fund.

Investment Management Services Generally. The Board considered the investment management services to be provided by Lord Abbett to the Fund, including investment research, portfolio management, and trading, and Lord Abbett’s commitment to compliance with all relevant legal requirements. The Board also observed that Lord Abbett was 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 to be 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. Because the Fund had not yet begun operations, the Board was not able to review the Fund’s investment performance and compliance.

Lord Abbett’s Personnel and Methods. The Board considered the qualifications of the personnel who would be providing investment management services to the Fund, in light of its investment objective and discipline. The Board noted that the same personnel provided management services to Lord Abbett International Core Equity Fund. 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 expected expense levels of the Fund and the expense levels of the peer expense group. It also considered the amount and nature of the fees to be paid by shareholders. The Board noted that it and Lord Abbett had agreed to cap expenses of the Fund for the period from May 1, 2010 through April 30, 2011 at 0.87% of average daily net assets.

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

28

overall 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.

Economies of Scale. The Board considered whether there might be economies of scale in managing the Fund and whether the Fund would benefit appropriately from any such economies of scale. The Board concluded that the proposed 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 to be paid by the Fund and the Fund’s shareholders to Lord Abbett and Distributor for services other than investment advisory services. The Board also considered the revenues and profitability of Lord Abbett’s investment advisory business apart from its mutual fund business, and the intangible benefits enjoyed by Lord Abbett by virtue of its relationship with the Fund. The Board observed that Distributor receives 12b-1 fees from certain of the Lord Abbett Funds as to shares held in accounts for which there is no other broker of record, may retain a portion of the 12b-1 fees 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.

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

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

100% of the ordinary income distributions paid by the Fund during the year is qualified dividend income.

The Fund intends to pass through foreign source income of $4,589 and foreign taxes of $248.

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.

International Core Equity Portfolio

SFICE-PORT-2-1210

(02/11)

2010

LORD ABBETT

ANNUAL

REPORT    

Lord Abbett

Series Fund—International Opportunities Portfolio*

For the fiscal year ended December 31, 2010

* Formerly known as International Portfolio

Lord Abbett Series Fund — International Opportunities Portfolio (formerly International Portfolio)

Annual Report

For the fiscal year ended December 31, 2010

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 performance of the Lord Abbett Series Fund — International Opportunities Portfolio for the fiscal year ended December 31, 2010. 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

For the fiscal year ended December 31, 2010, the Fund returned 21.22%, 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. SmallCap^® Index, ¹ which returned 21.96% over the same period.

Global markets had a volatile run during this period, as developed markets, specifically the eurozone, did not fare as well as global emerging markets. While the eurozone endeavors to resolve investors’ concerns about peripheral Europe (i.e., Greece, Spain, Portugal, and Ireland), growth is more evident in the Asian economies (excluding Japan) and in Latin America, where debt levels and government finances generally were lower than those in Europe.

Overall, slightly weak sector allocation was the reason for the Fund’s underperformance versus the benchmark. Within the consumer discretionary sector, shares of Intralot S.A., a Greece-based lottery systems provider, were hurt by the

1

Greek government’s tax reform bill, which targeted an increase in taxes from large corporations so that the government could generate more revenue. Furthermore, a gaming tax increase in Bulgaria also negatively affected the company. In addition, shares of Bellway plc, a United Kingdom-based homebuilder, dropped due to investors’ concerns about the U.K. housing market, as well as cuts to government funding. The recent austerity measures introduced by the new government have contributed to apprehension among both buyers and sellers. Within the information technology sector, shares of IBIDEN Co., Ltd., a Japan-based manufacturer of printed circuit boards and plastic packages, fell due to the company’s lower than expected operating profit forecast for the fiscal year 2011.

The Fund’s exposure to emerging markets both directly and indirectly (by owning global companies deriving revenues from emerging markets) contributed significantly to the Fund’s returns. Contributing to relative Fund performance was stock selection in the financials and energy sectors. Within the financials sector, shares of Megaworld Corporation, a Philippines-based real estate company, were boosted due to the rise in the company’s residential project launches as demand for condominiums increased during the second and third quarters of 2010. In addition, shares of PT Bank Negara Indonesia benefited from increased revenues and strong company management, as the company bolstered its risk management division and board of directors. Another positive for the company is the impending rights issue, which will increase the company’s capital and will be used primarily to fund loan growth. Within the energy sector, shares of Premier Oil plc, a United Kingdom-based oil and gas company, profited from a strong exploration program in both the North Sea and Indonesia.

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 Developed Ex-U.S. SmallCap^® Index is a component of the S&P Developed Broad Market Index (BMI). The BMI is a float-weighted index that spans 22 countries and includes the listed shares of all companies with an available market capitalization (float) of at least $100 million at the annual reconstitution, using end of July data.

Unless otherwise specified, the index reflects total return, with all dividends reinvested. The index is unmanaged, does not reflect the deduction of fees or expenses, and is not available for direct investment.

Important Performance and Other Information

Performance data quoted in the following pages reflect past performance and are no guarantee of future results. Current performance may be higher or lower than the performance quoted. The investment return and principal value of an investment in 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

2

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 above are as of December 31, 2010; 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 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, 2010

	1 Year		5 Years		10 Years
Class VC		21.22%		3.27%		4.34%

¹    Performance for the unmanaged index does not reflect any fees or expenses. The performance of the index is not necessarily representative of the Fund’s performance.

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, 2010 through December 31, 2010).

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 7/1/10 – 12/31/10” 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†
	7/1/10		12/31/10		7/1/10 - 12/31/10
Class VC
Actual	$	1,000.00	$	1,309.30	$	6.98
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.17	$	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, 2010

Sector*	%**
Consumer Discretionary		24.98%
Consumer Staples		8.99%
Energy		3.81%
Financials		14.98%
Health Care		3.49%
Industrials		18.40%
Information Technology		9.08%
Materials		10.76%
Telecommunication Services		0.64%
Utilities		3.32%
Short-Term Investment		1.55%
Total		100.00%

* A sector may comprise several industries.

** Represents percent of total investments.

6

Schedule of Investments

December 31, 2010

Investments	Shares		U.S. $ Value (000)
LONG-TERM INVESTMENTS 97.78%
COMMON STOCKS 96.23%
Australia 4.07%
Chemicals 1.79%
Incitec Pivot Ltd.		232,948	$	944
Multi-Line Retail 0.70%
Myer Holdings Ltd.		100,813		366
Multi-Utilities 0.68%
DUET Group		209,103		360
Trading Companies & Distributors 0.90%
Emeco Holdings Ltd.		427,375		472
Total Australia				2,142
Austria 0.86%
Hotels, Restaurants & Leisure
bwin Interactive Entertainment AG		11,390		450
Brazil 3.60%
Insurance 1.13%
Brasil Insurance Participacoes e Administracao SA*		500		596
Real Estate Management & Development 1.04%
BR Properties SA		50,146		549
Textiles, Apparel & Luxury Goods 0.35%
Restoque Comercio e Confeccoes de Roupas SA		17,995		185
Water Utilities 1.08%
Companhia de Saneamento Basico do Estado de Sao Paulo ADR*		10,700		566
Total Brazil				1,896

Investments	Shares		U.S. $ Value (000)
Canada 3.79%
Airlines 0.35%
Westjet Airlines Ltd.		12,988	$	186
Metals & Mining 2.59%
Equinox Minerals Ltd.*		134,700		828
Quadra FNX Mining Ltd.*		31,745		535
				1,363
Oil, Gas & Consumable Fuels 0.85%
Crescent Point Energy Corp.		7,800		347
Questerre Energy Corp.*		48,270		98
				445
Total Canada				1,994
China 0.44%
Food Products
Zhongpin, Inc.*		11,421		233
Egypt 1.12%
Automobiles 0.42%
Ghabbour Auto		29,527		221
Capital Markets 0.70%
EFG-Hermes Holding SAE		63,217		369
Total Egypt				590
France 3.95%
Beverages 1.13%
Remy Cointreau SA		8,413		595
Computers & Peripherals 0.73%
Gemalto NV		9,025		384
Media 2.09%
Ipsos SA		14,774		701
Publicis Groupe		7,684		401
				1,102
Total France				2,081

See Notes to Financial Statements.

7

Schedule of Investments (continued)

December 31, 2010

Investments	Shares		U.S. $ Value (000)
Germany 9.63%
Aerospace & Defense 1.30%
MTU Aero Engines Holding AG		10,179	$	687
Chemicals 0.92%
Symrise GmbH & Co. AG		17,642		483
Electrical Equipment 0.73%
Tognum AG		14,626		385
Industrial Conglomerates 1.28%
Rheinmetall AG		8,395		673
Life Sciences Tools & Services 1.26%
Gerresheimer AG*		15,068		662
Machinery 0.53%
GEA Group AG		9,653		279
Semiconductors & Semiconductor Equipment 1.61%
Dialog Semiconductor plc*		37,247		847
Trading Companies & Distributors 1.18%
Kloeckner & Co. SE*		22,107		620
Transportation Infrastructure 0.82%
Hamburger Hafen und Logistik AG		9,315		430
Total Germany				5,066
Greece 0.48%
Hotels, Restaurants & Leisure
Intralot SA-Integrated Lottery Systems & Services		75,133		250
Hong Kong 5.20%
Auto Components 0.93%
Minth Group Ltd.		300,000		493

Investments	Shares		U.S. $ Value (000)
Communications Equipment 0.47%
VTech Holdings Ltd.		21,000	$	247
Construction & Engineering 1.15%
China State Construction International Holdings Ltd.		642,000		606
Hotels, Restaurants & Leisure 0.53%
REXLot Holdings Ltd.		2,625,000		277
Specialty Retail 1.34%
Hengdeli Holdings Ltd.		756,000		450
Pou Sheng International Holdings Ltd.*		1,457,000		253
				703
Textiles, Apparel & Luxury Goods 0.78%
Daphne International Holdings Ltd.		440,000		412
Total Hong Kong				2,738
Indonesia 1.41%
Commercial Banks 0.97%
PT Bank Negara Indonesia (Persero) Tbk		1,192,669		512
Real Estate Management & Development 0.44%
PT Bakrieland Development Tbk		13,365,000		232
Total Indonesia				744
Ireland 1.77%
Beverages 0.60%
C&C Group plc		69,990		316
Machinery 1.17%
Charter International plc		46,665		614
Total Ireland				930

See Notes to Financial Statements.

8

Schedule of Investments (continued)

December 31, 2010

Investments	Shares		U.S. $ Value (000)
Italy 6.78%
Beverages 0.50%
Davide Campari-Milano SpA		40,491	$	264
Capital Markets 0.76%
Azimut Holding SpA		44,147		400
Electric: Utilities 0.49%
Iren SpA		155,387		260
Electrical Equipment 0.60%
Prysmian SpA		18,645		318
Food Products 1.18%
Parmalat SpA		226,513		621
Internet & Catalog Retail 1.22%
Yoox SpA*		49,701		641
Textiles, Apparel & Luxury Goods 1.02%
Safilo Group SpA*		30,015		534
Transportation Infrastructure 1.01%
Ansaldo STS SpA		36,985		531
Total Italy				3,569
Japan 19.30%
Auto Components 2.05%
Keihin Corp.		24,700		554
Nifco, Inc.		19,400		524
				1,078
Chemicals 1.78%
JSR Corp.		36,600		679
ZEON Corp.		31,000		259
				938
Communications Equipment 0.92%
Hitachi Kokusai Electric, Inc.		49,000		485
Containers & Packaging 1.48%
FP Corp.		14,100		780

Investments	Shares		U.S. $ Value (000)
Diversified Consumer Services 1.00%
Benesse Holdings, Inc.		11,400	$	525
Electronic Equipment, Instruments & Components 1.25%
Nippon Electric Glass Co., Ltd.		46,000		660
Health Care Equipment & Supplies 1.18%
Hogy Medical Co., Ltd.		12,800		622
Hotels, Restaurants & Leisure 0.67%
PGM Holdings KK		507		351
Household Durables 1.25%
Makita Corp.		16,100		655
Information Technology Services 0.84%
Obic Co., Ltd.		2,140		440
Internet & Catalog Retail 1.37%
DeNA Co., Ltd.		12,500		448
Start Today Co., Ltd.		68		271
				719
Internet Software & Services 0.75%
Gree, Inc.		31,000		393
Machinery 1.81%
Nabtesco Corp.		26,500		564
Sumitomo Heavy Industries Ltd.		61,000		390
				954
Multi-Line Retail 0.50%
Isetan Mitsukoshi Holdings Ltd.		22,792		264
Pharmaceuticals 0.47%
Rohto Pharmaceutical Co., Ltd.		21,000		245

See Notes to Financial Statements.

9

Schedule of Investments (continued)

December 31, 2010

Investments	Shares		U.S. $ Value (000)
Japan (continued)
Real Estate Investment Trusts 0.33%
United Urban Investment Corp.		138	$	176
Specialty Retail 1.01%
Nitori Co., Ltd.		6,100		533
Wireless Telecommunication Services 0.64%
Okinawa Cellular Telephone Co.		152		337
Total Japan				10,155
Netherlands 1.60%
Metals & Mining 1.08%
New World Resources NV A Shares		38,006		569
Professional Services 0.52%
Brunel International NV		6,868		271
Total Netherlands				840
Norway 0.81%
Specialty Retail
Statoil Fuel & Retail ASA*		46,620		426
Philippines 4.64%
Commercial Banks 1.80%
Metropolitan Bank & Trust Co.		291,440		477
Philippine National Bank*		327,290		472
				949
Food & Staples Retailing 1.11%
Alliance Global Group, Inc.		2,047,300		582
Real Estate Management & Development 1.73%
Filinvest Land, Inc.		12,420,000		371

Investments	Shares		U.S. $ Value (000)
Megaworld Corp.		9,566,000	$	540
				911
Total Philippines				2,442
Spain 1.65%
Commercial Services & Supplies 0.22%
Prosegur Compania de Seguridad SA Registered Shares		2,043		115
Food Products 1.43%
Ebro Foods SA		11,638		247
Viscofan SA		13,388		508
				755
Total Spain				870
Sweden 0.95%
Food & Staples Retailing
Axfood AB		13,431		502
Switzerland 4.75%
Capital Markets 0.97%
EFG International AG		37,496		513
Hotels, Restaurants & Leisure 0.69%
Orascom Development Holding AG EDR*		128,200		365
Household Durables 1.03%
Forbo Holding AG Registered Shares		858		541
Life Sciences Tools & Services 0.56%
Lonza Group AG Registered Shares		3,685		295
Specialty Retail 1.50%
Dufry Group Registered Shares*		5,843		786
Total Switzerland				2,500

See Notes to Financial Statements.

10

Schedule of Investments (continued)

December 31, 2010

Investments	Shares		U.S. $ Value (000)
Taiwan 1.25%
Computers & Peripherals 1.25%
Wistron Corp.		323,506	$	659
Diversified Financial Services 0.00%
iShares MSCI Taiwan Index Fund ETF		54		1
Total Taiwan				660
Thailand 0.82%
Real Estate Management & Development
Quality Houses pcl		6,184,500		431
Turkey 1.39%
Food Products 0.73%
Ulker Biskuvi Sanayi AS		108,207		385
Transportation Infrastructure 0.66%
TAV Havalimanlari Holding AS*		71,580		347
Total Turkey				732
United Kingdom 15.97%
Airlines 0.87%
easyJet plc*		66,410		456
Beverages 0.84%
Britvic plc		60,233		444
Capital Markets 0.98%
Schroders plc		17,841		516
Chemicals 1.04%
Croda International plc		21,747		548
Commercial Services & Supplies 0.50%
Babcock International Group plc		29,670		264

Investments	Shares		U.S. $ Value (000)
Consumer Finance 0.90%
Provident Financial plc		34,745	$	473
Electrical Equipment 0.11%
Ceres Power Holdings plc*		51,000		57
Hotels, Restaurants & Leisure 1.38%
PartyGaming plc*		84,797		272
Sportingbet plc		474,526		456
				728
Insurance 2.26%
Amlin plc		84,676		540
Catlin Group Ltd.		112,625		650
				1,190
Internet Software & Services 0.86%
Telecity Group plc*		61,695		452
Oil, Gas & Consumable Fuels 2.94%
Afren plc*		179,784		414
Dragon Oil plc*		62,940		528
Premier Oil plc*		19,904		605
				1,547
Professional Services 2.09%
Intertek Group plc		15,787		437
Michael Page International plc		76,617		663
				1,100
Software 0.34%
Micro Focus International plc		29,308		178
Specialty Retail 0.86%
Carphone Warehouse Group plc*		73,202		451
Total United Kingdom				8,404
Total Common Stocks (cost $42,183,959)				50,645

See Notes to Financial Statements.

11

Schedule of Investments (concluded)

December 31, 2010

Investments	Shares		U.S. $ Value (000)
PREFERRED STOCKS 1.52%
Brazil
Electric: Utilities 1.04%
Companhia de Transmissao de Energia Eletrica Paulista		16,545	$	549
Machinery 0.48%
Marcopolo SA		60,194		254
Total Preferred Stocks (cost $538,103)				803
RIGHT 0.03%
Philippines
Metropolitan Bank & Trust*(a) (cost $0)		30,494		15
Total Long-Term Investments (cost $42,722,062)				51,463

	Principal Amount (000)		U.S. $ Value (000)
SHORT-TERM INVESTMENT 1.54%
Repurchase Agreement
Repurchase Agreement dated 12/31/2010, 0.04% due 1/3/2011 with Fixed Income Clearing Corp. collateralized by $770,000 of Federal Home Loan Mortgage Corp. at 4.00% due 6/12/2013; value: $825,825; proceeds: $808,784 (cost $808,782)	$	809	$	809
Total Investments in Securities 99.32% (cost $43,530,844)				52,272
Foreign Cash and Other Assets in Excess of Liabilities 0.68%				359
Net Assets 100.00%			$	52,631

ADR	American Depositary Receipt.
EDR	Egyptian Depositary Receipt.
ETF	Exchange Traded Fund.
*	Non-income producing security.
(a)	Exercise price of $50.00 and expiration date of 1/14/11.

See Notes to Financial Statements.

12

Statement of Assets and Liabilities

December 31, 2010

ASSETS:
Investments in securities, at value (cost $43,530,844)	$	52,271,745
Foreign cash, at value (cost $881,891)		913,241
Receivables:
Interest and dividends		106,441
Investment securities sold		42,588
From advisor (See Note 3)		14,531
Capital shares sold		8,911
Prepaid expenses		386
Total assets		53,357,843
LIABILITIES:
Payables:
Investment securities purchased		541,149
Capital shares reacquired		34,759
Management fee		32,258
Directors’ fees		3,291
Fund administration		1,720
Accrued expenses and other liabilities		114,119
Total liabilities		727,296
NET ASSETS	$	52,630,547
COMPOSITION OF NET ASSETS:
Paid-in capital	$	47,869,822
Distributions in excess of net investment income		(55,391	)
Accumulated net realized loss on investments and foreign currency related transactions		(3,956,850	)
Net unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies		8,772,966
Net Assets	$	52,630,547
Outstanding shares (50 million shares of common stock authorized, $.001 par value)		6,006,999
Net asset value, offering and redemption price per share (Net assets divided by outstanding shares)		$8.76

See Notes to Financial Statements.

13

Statement of Operations

For the Year Ended December 31, 2010

Investment income:
Dividends (net of foreign withholding taxes of $73,393)	$	949,996
Interest and other		4,598
Total investment income		954,594
Expenses:
Management fee		344,015
Shareholder servicing		139,413
Custody		74,111
Professional		47,036
Reports to shareholders		21,317
Fund administration		18,348
Directors’ fees		1,854
Other		2,269
Gross expenses		648,363
Expense reductions (See Note 7)		(63	)
Management fee waived (See Note 3)		(97,876	)
Net expenses		550,424
Net investment income		404,170
Net realized and unrealized gain:
Net realized gain on investments and foreign currency related transactions (net of foreign capital gains tax)		7,114,979
Net change in unrealized appreciation/depreciation on investments and translation of assets and liabilities denominated in foreign currencies		1,684,283
Net realized and unrealized gain		8,799,262
Net Increase in Net Assets Resulting From Operations	$	9,203,432

See Notes to Financial Statements.

14

Statements of Changes in Net Assets

INCREASE IN NET ASSETS	For the Year Ended December 31, 2010			For the Year Ended December 31, 2009
Operations:
Net investment income	$	404,170		$	340,065
Net realized gain (loss) on investments and foreign currency related transactions (net of foreign capital gains tax)		7,114,979			(501,558	)
Net change in unrealized appreciation/depreciation on investments and translation of assets and liabilities denominated in foreign currencies		1,684,283			13,499,072
Net increase in net assets resulting from operations		9,203,432			13,337,579
Distributions to shareholders from:
Net investment income		(374,581	)		(580,563	)
Capital share transactions (See Note 10):
Proceeds from sales of shares		14,587,155			18,840,756
Reinvestment of distributions		374,581			580,563
Cost of shares reacquired		(15,170,326	)		(9,762,520	)
Net increase (decrease) in net assets resulting from capital share transactions		(208,590	)		9,658,799
Net increase in net assets		8,620,261			22,415,815
NET ASSETS:
Beginning of year	$	44,010,286		$	21,594,471
End of year	$	52,630,547		$	44,010,286
Distributions in excess of net investment income	$	(55,391	)	$	(304,475	)

See Notes to Financial Statements.

15

Financial Highlights

	Year Ended 12/31
	2010			2009			2008			2007			2006
Per Share Operating Performance
Net asset value, beginning of year		$7.28			$4.99			$10.83			$11.89			$10.43
Investment operations:
Net investment income(a)		.07			.06			.10			.08			.10
Net realized and unrealized gain (loss)		1.47			2.33			(5.69	)		.44			2.91
Total from investment operations		1.54			2.39			(5.59	)		.52			3.01
Distributions to shareholders from:
Net investment income		(.06	)		(.10	)		(.05	)		(.11	)		(.05	)
Net realized gain		—			—			(.20	)		(1.47	)		(1.50	)
Total distributions		(.06	)		(.10	)		(.25	)		(1.58	)		(1.55	)
Net asset value, end of year		$8.76			$7.28			$4.99			$10.83			$11.89
Total Return(b)		21.22	%		47.87	%		(51.53	)%		4.73	%		29.08	%
Ratios to Average Net Assets:
Expenses, excluding expense reductions and including management fee waived and expenses reimbursed		1.20	%		1.15	%		1.06	%		1.15	%		1.15	%
Expenses, including expense reductions, management fee waived and expenses reimbursed		1.20	%		1.15	%		1.06	%		1.15	%		1.15	%
Expenses, excluding expense reductions, management fee waived and expenses reimbursed		1.41	%		1.58	%		1.53	%		1.36	%		1.65	%
Net investment income		.88	%		1.04	%		1.31	%		.67	%		.87	%
Supplemental Data:
Net assets, end of year (000)		$52,631			$44,010			$21,594			$33,963			$28,093
Portfolio turnover rate		86.71	%		104.65	%		123.71	%		106.30	%		98.50	%

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

^(b) Total return does not consider the effects of sales charges or other expenses imposed by an insurance company and assumes the reinvestment of all distributions.

See Notes to Financial Statements.

16

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 and was incorporated under Maryland law in 1989. The Company consists of twelve separate portfolios (the “Funds”). This report covers International Opportunities Portfolio (the “Fund,” formerly, International Portfolio). Effective May 1, 2010, International Portfolio changed its name to International Opportunities Portfolio. The Fund is diversified as defined in the Act.

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

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 (“NYSE”). 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 fair value.

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

(c) Investment Income–Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis as earned. Discounts are accreted and premiums are amortized using the effective interest method and are included in Interest and other income in the Statement of Operations. 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.

17

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, 2007 through December 31, 2010. 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 gain on investments and foreign currency related transactions (net of foreign capital gains tax) 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

18

Notes to Financial Statements (continued)

when the value of these securities has declined, the Fund may incur a loss upon disposition of the securities.

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

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

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

• Level 3 – significant unobservable inputs (including 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, 2010 in valuing the Fund’s investments carried at value:

Investment Type*	Level 1 (000)		Level 2 (000)		Level 3 (000)		Total (000)
Common Stocks	$	50,214	$	431	$	–	$	50,645
Preferred Stocks		803		–		–		803
Right		–		15		–		15
Repurchase Agreement		–		809		–		809
Total	$	51,017	$	1,255	$	–	$	52,272

* See Schedule of Investments for values in each industry.

The following is a reconciliation of investments with for unobservable inputs (Level 3) that were used in determining fair value:

Investment Type	Balance as of January 1, 2010 (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, 2010 (000)
Common Stock	$	1	$	–	$	1	$	–	*	$	(2	)	$	–	$	–

* Amount is less than $1,000.

19

Notes to Financial Statements (continued)

As of December 31, 2009, the Fund utilized adjusted valuations of foreign securities (as described in Note 2(a)) to more accurately reflect their fair value as of the close of regular trading on the NYSE, which resulted in Level 2 inputs for substantially all foreign securities. As of December 31, 2010, the Fund utilized the last sale or official closing price on the exchange or system on which the foreign securities are principally traded. Accordingly, the valuations of foreign securities as of December 31, 2010 were categorized as Level 1 inputs. During the period ended December 31, 2010, all foreign securities held by the Fund that were classified as Level 2 as of December 31, 2009 that remain in the portfolio as of December 31, 2010 were transferred from Level 2 to Level 1. As of December 31, 2009, the value of foreign securities included in Level 2 for the Fund were approximately $37,412.

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 rate:

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

For the fiscal year ended December 31, 2010, the effective management fee, net of waivers, was at an annualized rate of .54% of the Fund’s average daily net assets.

In addition, Lord Abbett provides certain administrative services to the Fund pursuant to an Administrative Services Agreement in return for a fee at an annual rate of .04% of the Fund’s average daily net assets.

For the period January 1, 2010 through April 30 2010, Lord Abbett voluntarily agreed to waive all or a portion of its management fee and, if necessary, reimburse the Fund’s other expenses to the extent necessary so that total net annual operating expenses did not exceed an annualized rate of 1.20%.

For the period May 1, 2010 through April 30, 2011, Lord Abbett has contractually agreed to continue such waivers under the same terms. This agreement may be terminated only upon the approval of the Fund’s Board of Directors.

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, 2010, the Fund incurred expenses of $121,601 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.

20

Notes to Financial Statements (continued)

4. DISTRIBUTIONS AND CAPITAL LOSS CARRYFORWARDS

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

The tax character of distributions paid during the fiscal years ended December 31, 2010 and 2009 was as follows:

	Year Ended 12/31/2010		Year Ended 12/31/2009
Distributions paid from:
Ordinary income	$	374,581	$	580,563
Total distributions paid	$	374,581	$	580,563

As of December 31, 2010, the components of accumulated gains on a tax-basis were as follows:

Undistributed ordinary income - net	$	16,151
Total undistributed earnings	$	16,151
Capital loss carryforwards*		(3,259,150	)
Temporary differences		(13,688	)
Unrealized gains—net		8,017,412
Total accumulated gains—net	$	4,760,725

* As of December 31, 2010, the capital loss carryforwards, along with the related expiration dates, were as follows:

2016		2017		Total
	$408,950	$	2,850,200	$	3,259,150

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 ordinary losses of $10,397 during fiscal 2010.

As of December 31, 2010, the aggregate unrealized security gains and losses based on cost for U.S. federal income tax purposes were as follows:

Tax cost	$	44,285,246
Gross unrealized gain		9,189,148
Gross unrealized loss		(1,202,649	)
Net unrealized security gain	$	7,986,499

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

21

Notes to Financial Statements (continued)

Permanent items identified during the fiscal year ended December 31, 2010 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
	$219,495	$	18,540		$ (238,035)

The permanent differences are attributable to the tax treatment of certain distributions paid, foreign currency transactions and certain foreign securities.

On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the “Modernization Act”) was signed by the President. The Modernization Act includes numerous provisions that generally become effective for taxable years beginning after the date of enactment. Management is currently assessing the impact of the Modernization Act as it relates to the Fund.

5.    PORTFOLIO SECURITIES TRANSACTIONS

Purchases and sales of investment securities (excluding short-term investments) for the fiscal year ended December 31, 2010 were as follows:

Purchases	Sales
$38,491,191	$	38,254,870

There were no purchases or sales of U.S. Government securities for the fiscal year ended December 31, 2010.

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 an arrangement with its transfer agent and custodian, whereby credits realized as a result of uninvested cash balances are used to reduce a portion of 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.

22

Notes to Financial Statements (concluded)

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. These risks are generally greater for securities issued by companies in emerging market countries. Investing in small companies generally involves greater risks than investing in the stocks of larger companies, including more volatility and less liquidity.

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, 2010			Year Ended December 31, 2009
Shares sold		1,905,221			3,267,315
Reinvestment of distributions		43,658			80,971
Shares reacquired		(1,989,589	)		(1,624,786	)
Increase (decrease)		(40,710	)		1,723,500

23

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 of International Opportunities Portfolio (formerly known as International Portfolio), one of the portfolios constituting the Lord Abbett Series Fund, Inc. (the “Company”), including the schedule of investments, as of December 31, 2010, 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, 2010, 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 International Opportunities Portfolio (formerly known as International Portfolio) of the Lord Abbett Series Fund, Inc. as of December 31, 2010, 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 15, 2011

24

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 the investment adviser provides, and annually considers whether to renew the contract with the adviser. Generally, each Director holds office until his/her successor is elected and qualified or until his/her earlier resignation or removal, as provided in the Company’s organizational documents.

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

Interested Directors

The following Directors are associated with Lord Abbett and are “interested persons” of the Company as defined in the Act. Mr. Dow and Ms. Foster are officers and directors or trustees of each of the 13 Lord Abbett-sponsored funds, which consist of 53 portfolios or series.

Name, Address and Year of Birth	Current Position and Length of Service with the Company	Principal Occupation and Other Directorships During Past Five Years
Robert S. Dow Lord, Abbett & Co. LLC 90 Hudson Street Jersey City, NJ 07302 (1945)	Director since 1995 and Chairman since 1996	Principal Occupation: Senior Partner of Lord Abbett (since 2007) and was formerly Managing Partner (1996 - 2007) and Chief Investment Officer (1995 - 2007), joined Lord Abbett in 1972. Other Directorships: None.
Daria L. Foster Lord, Abbett & Co. LLC 90 Hudson Street Jersey City, NJ 07302 (1954)	Director and President since 2006	Principal Occupation: Managing Partner of Lord Abbett (since 2007), and was formerly Director of Marketing and Client Service, joined Lord Abbett in 1990. Other Directorships: None.

Independent Directors

The following Independent Directors also are directors or trustees of each of the 13 Lord Abbett-sponsored funds, which consist of 53 portfolios or series.

Name, Address and Year of Birth	Current Position and Length of Service with the Company	Principal Occupation and Other Directorships During Past Five Years
E. Thayer Bigelow Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1941)	Director since 1994	Principal Occupation: Managing General Partner, Bigelow Media, LLC (since 2000); Senior Adviser, Time Warner Inc. (1998 - 2000). Other Directorships: Currently serves as director of Crane Co. (since 1984) and Huttig Building Products Inc. (since 1998). Previously served as a director of R.H. Donnelley Inc. (2009 - 2010) and Adelphia Communications Inc. (2003 - 2007).

25

Basic Information About Management (continued)

Name, Address and Year of Birth	Current Position and Length of Service with the Company	Principal Occupation and Other Directorships During Past Five Years
Robert B. Calhoun, Jr. Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1942)	Director since 1998	Principal Occupation: Senior Advisor of Monitor Clipper Partners, a private equity investment fund (since 1997); President of Clipper Asset Management Corp. (1991 - 2009). Other Directorships: Previously served as a director of Avondale, Inc. (1991 - 2005) and Interstate Bakeries Corp. (1991 - 2008).
Evelyn E. Guernsey Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1955)	Director since 2011	Principal Occupation: CEO, Americas of J.P. Morgan Asset Management (2004 - 2010). Other Directorships: None.
Julie A. Hill Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1946)	Director since 2004	Principal Occupation: Owner and CEO of The Hill Company, a business consulting firm (since 1998). Other Directorships: Currently serves as director of WellPoint, Inc., a health benefits company (since 1994). Previously served as a director of Resources Connection, Inc., a consulting firm (2004 - 2007).
Franklin W. Hobbs Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1947)	Director since 2001	Principal Occupation: Advisor of One Equity Partners, a private equity firm (since 2004). Other Directorships: Currently serves as a director and Chairman of the Board of Ally Financial 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	Principal Occupation: Chairman of Spencer Stuart (U.S.), an executive search consulting firm (since 1996). Other Directorships: Currently serves as director of Ace, Ltd. (since 1997). Previously served as a director of Hewitt Associates, Inc. (2004 - 2010).
James L.L. Tullis Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1947)	Director since 2006	Principal Occupation: CEO of Tullis-Dickerson and Co. Inc., a venture capital management firm (since 1990). Other Directorships: Currently serves as director of Crane Co. (since 1998). Previously served as a director of Viacell Inc. (2003 - 2007).

26

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 also may be officers of the other Lord Abbett-sponsored funds and maintain offices at 90 Hudson Street, Jersey City, NJ 07302. Unless otherwise indicated, the position(s) and title(s) listed under the “Principal Occupation” column indicate each officer’s position(s) and title(s) with Lord Abbett.

Name and Year of Birth	Current Position with the 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 of Lord Abbett (since 2007), and was formerly Managing Partner (1996 - 2007) and Chief Investment Officer (1995 - 2007), joined Lord Abbett in 1972.
Daria L. Foster (1954)	President	Elected in 2006	Managing Partner of Lord Abbett (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.
Robert A. Lee (1969)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 1997.
Vincent J. McBride (1964)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 2003.
Andrew H. O’Brien (1973)	Executive Vice President	Elected in 2010	Partner and Portfolio Manager, joined Lord Abbett in 1998.
F. Thomas O’Halloran, III (1955)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 2001.
Harold E. Sharon (1960)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 2003.

27

Basic Information About Management (continued)

Name and Year of Birth	Current Position with the Company	Length of Service of Current Position	Principal Occupation During Past Five Years
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.
A. Edward Allinson (1961)	Vice President	Elected in 2011	Portfolio Manager, joined Lord Abbett in 2005.
Sean J. Aurigemma (1969)	Vice President	Elected in 2010	Portfolio Manager, joined Lord Abbett in 2007 and was formerly a Managing Director and Portfolio Manager at Morgan Stanley (1999 - 2007).
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.
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	Partner and Director, joined Lord Abbett in 2001.

28

Basic Information About Management (continued)

Name and Year of Birth	Current Position with the Company	Length of Service of Current Position	Principal Occupation During Past Five Years
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).
Thomas B. Maher (1967)	Vice President	Elected in 2010	Partner and Portfolio Manager, joined Lord Abbett in 2003.
Justin C. Maurer (1969)	Vice President	Elected in 2010	Partner and Portfolio Manager, joined Lord Abbett in 2001.
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	Partner and Senior Deputy General Counsel, joined Lord Abbett in 2007 and was formerly an Executive Vice President and the General Counsel at Cohen & Steers Capital Management, Inc. (1999 - 2007).
Francis T. Timons (1969)	Vice President	Elected in 2010	Portfolio Manager, joined Lord Abbett in 2007 and was formerly a Research Analyst at Robert W. Baird & Co. (2004 - 2007).

29

Basic Information About Management (concluded)

Name and Year of Birth	Current Position with the Company	Length of Service of Current Position	Principal Occupation During Past Five Years
Arthur K. Weise (1970)	Vice President	Elected in 2010	Portfolio Manager, joined Lord Abbett in 2007 and was formerly a Managing Director, Portfolio Manager and Analyst at Bank of New York Institutional Asset Management (2005 -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.

30

Approval of Advisory Contract

At meetings held on December 15 and 16, 2010, 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, including information about the investment performance of the Fund compared to the performance of its benchmark, 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 the results of the examination of the portfolio management team by members of the Contract Committee during the year, which included a meeting with the portfolio management team. Additionally, the Board took into consideration its familiarity with Lord Abbett gained through its previous meetings and discussions during the course of the year.

The materials received by the Board included, but were not limited to: (1) information provided by Lipper Inc. (“Lipper”) regarding the investment performance of the Fund compared to the investment performance of one or more groups of funds with substantially similar investment objectives, including a group of funds within the same investment classification/objective (each group a “performance universe”) and to the investment performance of an appropriate fund index; (2) information on the expense ratios, effective management fee rates, and other expense components for the Fund and similar funds (the “peer group”); (3) information provided by Lord Abbett on the projected expense ratios, management fee rates, and other expense components for the Fund; (4) sales and redemption information for the Fund; (5) information regarding Lord Abbett’s financial condition; (6) an analysis of the relative profitability of the management agreement to Lord Abbett; (7) information provided by Lord Abbett regarding the investment management fees Lord Abbett receives from its other advisory clients maintaining accounts with a similar investment strategy as the Fund; (8) information regarding the distribution arrangements of the Fund; and (9) 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 previously had 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 observed that the investment performance of the Fund was in the first quintile of its performance universe for the nine-month period, the second quintile for the one-year period, and the fourth quintile for the three-year, 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 ten-year periods and lower than that of the Index for the three-year and five-year periods.

31

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 observed that for the fiscal year ended December 31, 2009 the contractual management and administrative services fees were approximately two basis points above the median of the peer group and the actual management and administrative services fees were approximately thirty-five basis points below the median of the peer group. The Board observed that for the fiscal year ended December 31, 2009 the total expense ratio of the Fund was approximately seven basis points below the median of the peer group. The Board noted that effective May 1, 2010 it and Lord Abbett had entered into an expense limitation agreement that had the effect of limiting the total expense ratio to 1.20% of average daily net assets, and that Lord Abbett proposed to renew the agreement through April 30, 2012. The Board considered how that expense ratio would relate to the expense ratios 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 increased in its 2010 fiscal year. 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

32

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.

33

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

100% of the ordinary income distributions paid by the Fund during the year is qualified dividend income.

The Fund intends to pass through foreign source income of $1,023,388 and foreign taxes of $97,867.

34

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 Opportunities Portfolio

SFIO-PORT-2-1210

(02/11)

2010

LORD ABBETT

ANNUAL REPORT    

Lord Abbett

Series Fund—Mid Cap Value Portfolio

For the fiscal year ended December 31, 2010

Lord Abbett Series Fund — Mid Cap Value Portfolio

Annual Report

For the fiscal year ended December 31, 2010

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 performance of the Lord Abbett Series Fund – Mid Cap Value Portfolio for the fiscal year ended December 31, 2010. 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 commmentaries 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

For the fiscal year ended December 31, 2010, the Fund returned 25.43%, 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,¹ which returned 24.75% over the same period.

The broad market generally advanced during the beginning of 2010, peaking in April. It then entered a period of dramatic uncertainty during the summer, and rallied strongly in the fourth quarter. The Fund’s holdings in fundamentally strong and attractively valued companies have benefited from generally improving economic conditions and market sentiment. While the market continued to present timely investment opportunities, the market also required the rigorous execution of our sell discipline.

During the 12-month period, positive stock selection within the industrials and information technology sectors was the largest contributor to Fund performance. Within industrials, Eaton Corp., a maker of fluid power systems and vehicle transmissions, saw its shares rise on better than expected earnings driven by its rapidly

1

recovering end markets. Within information technology, shares of Verifone Holdings Inc., a maker of electronic payment systems, were buoyed by strong demand for the firm’s next-generation encryption products sold to its tier one retailer and petroleum customers, as well as traction in its emerging media business. A relative overweight within consumer discretionary, along with excellent stock selection, also aided relative Fund performance. Shares of Wabco Holdings Inc., a commercial vehicle components manufacturer, benefited from a recovery in European truck production, as well as higher sales and profits in emerging markets.

The largest detractor from Fund performance during the 12-month period was poor stock selection within the strong performing energy sector. Shares of natural gas company Williams Companies, Inc. lagged the overall energy sector due to depressed natural gas prices and commodity-price weakness. A large overweight within the lackluster health care sector, along with poor stock selection within the materials sector, also hampered Fund performance. Steel maker Steel Dynamics, Inc. was hurt by low demand for metal, high raw material costs, and a slow recovery within the construction industry. The profits of glass container manufacturer Owens Illinois, Inc. suffered due to foreign currency headwinds.

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 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 included in the Russell 1000^® Value Index.

Unless otherwise specified, the index reflects total return, with all dividends reinvested. The index is unmanaged, does not reflect the deduction of fees or expenses, and is not available for direct investment.

Important Performance and Other Information

Performance data quoted in the following pages reflect past performance and are no guarantee of future results. Current performance may be higher or lower than the performance quoted. The investment return and principal value of an investment in 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 above are as of December 31, 2010; 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.

2

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. Past performance is no guarantee of future results.

Average Annual Total Returns for the

Periods Ended December 31, 2010

	1 Year		5 Years		10 Years
Class VC		25.43%		1.69%		5.90%

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

3

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, 2010 through December 31, 2010).

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 7/1/10 – 12/31/10” 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.

4

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†
	7/1/10		12/31/10		7/1/10 – 12/31/10
Class VC
Actual	$	1,000.00	$	1,288.30	$	6.81
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.24	$	6.01

^† Net expenses are equal to the Fund’s annualized expense ratio of 1.18%, 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, 2010

Sector*	%**
Consumer Discretionary		12.91%
Consumer Staples		1.70%
Energy		11.29%
Financials		21.15%
Health Care		11.24%
Industrials		13.46%
Information Technology		8.98%
Materials		10.88%
Telecommunication Services		1.50%
Utilities		4.51%
Short-Term Investment		2.38%
Total		100.00%

* A sector may comprise several industries.

** Represents percent of total investments.

5

Schedule of Investments

December 31, 2010

Investments	Shares		Value (000)
COMMON STOCKS 98.39%
Airlines 0.85%
Southwest Airlines Co.		326,000	$	4,231
Auto Components 0.99%
Gentex Corp.		69,200		2,046
Lear Corp.*		29,200		2,882
Total				4,928
Capital Markets 5.04%
Affiliated Managers Group, Inc.*		54,200		5,378
Invesco Ltd.		206,500		4,968
Lazard Ltd. Class A		309,340		12,216
LPL Investment Holdings, Inc.*		71,025		2,583
Total				25,145
Chemicals 4.51%
Air Products & Chemicals, Inc.		54,900		4,993
Ashland, Inc.		45,000		2,289
Celanese Corp. Series A		41,988		1,729
Eastman Chemical Co.		44,000		3,700
Huntsman Corp.		131,600		2,054
LyondellBasell Industries NV Class A (Netherlands)*(a)		104,200		3,584
Olin Corp.		202,409		4,153
Total				22,502
Commercial Banks 10.60%
City National Corp.		148,353		9,103
Comerica, Inc.		169,500		7,160
Commerce Bancshares, Inc.		120,419		4,784
Cullen/Frost Bankers, Inc.		91,400		5,586
Hancock Holding Co.		37,900		1,321
KeyCorp		577,900		5,114
M&T Bank Corp.		51,000		4,440
Signature Bank*		87,103		4,355
TCF Financial Corp.		427,195		6,327
UMB Financial Corp.		50,000		2,071
Zions Bancorporation		108,253		2,623
Total				52,884

Investments	Shares		Value (000)
Commercial Services & Supplies 1.11%
Republic Services, Inc.		185,262	$	5,532
Computers & Peripherals 0.69%
Diebold, Inc.		107,300		3,439
Containers & Packaging 1.73%
Ball Corp.		50,600		3,443
Greif, Inc. Class A		83,700		5,181
Total				8,624
Diversified Financial Services 1.11%
CIT Group, Inc.*		117,437		5,531
Diversified Telecommunication Services 1.52%
CenturyLink, Inc.		163,719		7,559
Electric: Utilities 1.31%
Northeast Utilities		90,263		2,878
PPL Corp.		138,400		3,643
Total				6,521
Electrical Equipment 0.70%
AMETEK, Inc.		89,250		3,503
Electronic Equipment, Instruments & Components 0.81%
Tyco Electronics Ltd. (Switzerland)(a)		114,000		4,036
Energy Equipment & Services 5.28%
Halliburton Co.		164,260		6,707
Helmerich & Payne, Inc.		52,100		2,526
Pride International, Inc.*		58,000		1,914
Superior Energy Services, Inc.*		137,600		4,815
Weatherford International Ltd. (Switzerland)*(a)		454,600		10,365
Total				26,327
Food Products 1.71%
Bunge Ltd.		130,523		8,552

See Notes to Financial Statements.

6

Schedule of Investments (continued)

December 31, 2010

Investments	Shares		Value (000)
Gas Utilities 2.01%
EQT Corp.		180,859	$	8,110
Questar Corp.		109,700		1,910
Total				10,020
Health Care Equipment & Supplies 3.41%
Beckman Coulter, Inc.		26,700		2,009
Cooper Cos., Inc. (The)		57,103		3,217
Kinetic Concepts, Inc.*		129,500		5,423
St. Jude Medical, Inc.*		60,500		2,586
Zimmer Holdings, Inc.*		70,200		3,768
Total				17,003
Health Care Providers & Services 4.17%
AmerisourceBergen Corp.		43,100		1,471
Coventry Health Care, Inc.*		75,800		2,001
HealthSouth Corp.*		178,835		3,704
Humana, Inc.*		42,100		2,304
McKesson Corp.		69,400		4,884
Patterson Cos., Inc.		56,500		1,731
Universal Health Services, Inc. Class B		108,300		4,702
Total				20,797
Hotels, Restaurants & Leisure 0.96%
Marriott International, Inc. Class A		52,537		2,182
Penn National Gaming, Inc.*		74,000		2,601
Total				4,783
Household Durables 1.49%
Fortune Brands, Inc.		82,300		4,958
Tupperware Brands Corp.		52,100		2,484
Total				7,442
Industrial Conglomerates 0.75%
Tyco International Ltd. (Switzerland)(a)		90,100		3,734
Information Technology Services 4.10%
Fiserv, Inc.*		149,900		8,778

Investments	Shares		Value (000)
VeriFone Systems, Inc.*		161,090	$	6,212
Western Union Co. (The)		294,600		5,471
Total				20,461
Insurance 3.72%
ACE Ltd. (Switzerland)(a)		46,519		2,896
Aon Corp.		115,200		5,300
Markel Corp.*		4,503		1,703
PartnerRe Ltd.		87,790		7,054
W.R. Berkley Corp.		58,900		1,613
Total				18,566
Machinery 9.22%
Dover Corp.		48,172		2,816
Eaton Corp.		61,860		6,279
Ingersoll-Rand plc (Ireland)(a)		130,200		6,131
Kennametal, Inc.		130,540		5,151
Oshkosh Corp.*		57,300		2,019
Pall Corp.		99,111		4,914
Parker Hannifin Corp.		55,600		4,798
Trinity Industries, Inc.		209,387		5,572
WABCO Holdings, Inc.*		136,236		8,301
Total				45,981
Media 6.15%
Interpublic Group of Cos., Inc. (The)*		1,308,280		13,894
Meredith Corp.		143,700		4,979
Omnicom Group, Inc.		257,900		11,812
Total				30,685
Metals & Mining 4.72%
Agnico-Eagle Mines Ltd. (Canada)(a)		69,656		5,343
IAMGOLD Corp. (Canada)(a)		284,500		5,064
Reliance Steel & Aluminum Co.		166,200		8,493
Royal Gold, Inc.		36,000		1,967
United States Steel Corp.		46,277		2,703
Total				23,570

See Notes to Financial Statements.

7

Schedule of Investments (concluded)

December 31, 2010

Investments	Shares		Value (000)
Multi-Line Retail 0.24%
Macy’s, Inc.		46,800	$	1,184
Multi-Utilities 1.23%
CMS Energy Corp.		330,403		6,146
Oil, Gas & Consumable Fuels 6.10%
Cabot Oil & Gas Corp.		75,100		2,843
El Paso Corp.		651,600		8,966
Forest Oil Corp.*		37,474		1,423
Murphy Oil Corp.		52,100		3,884
QEP Resources, Inc.		184,700		6,706
Range Resources Corp.		88,000		3,958
Southwestern Energy Co.*		28,000		1,048
Williams Cos., Inc. (The)		65,000		1,607
Total				30,435
Pharmaceuticals 3.75%
Mylan, Inc.*		420,811		8,892
Par Pharmaceutical Cos., Inc.*		71,900		2,769
Warner Chilcott plc Class A (Ireland)(a)		187,700		4,234
Watson Pharmaceuticals, Inc.*		54,700		2,825
Total				18,720
Real Estate Investment Trusts 0.84%
Alexandria Real Estate Equities, Inc.		47,200		3,458
Duke Realty Corp.		57,720		719
Total				4,177
Road & Rail 0.94%
Heartland Express, Inc.		86,300		1,382
Kansas City Southern*		68,676		3,287
Total				4,669
Semiconductors & Semiconductor Equipment 1.42%
Analog Devices, Inc.		42,600		1,605
Micron Technology, Inc.*		459,300		3,684
National Semiconductor Corp.		132,096		1,818
Total				7,107

Investments	Shares		Value (000)
Software 2.02%
Adobe Systems, Inc.*		178,180	$	5,484
Intuit, Inc.*		93,600		4,614
Total				10,098
Specialty Retail 2.60%
Guess?, Inc.		51,600		2,442
PetSmart, Inc.		103,800		4,133
Pier 1 Imports, Inc.*		608,500		6,389
Total				12,964
Textiles, Apparel & Luxury Goods 0.59%
VF Corp.		33,900		2,922
Total Common Stocks (cost $382,205,863)				490,778
	Principal Amount (000)
SHORT-TERM INVESTMENT 2.39%
Repurchase Agreement
Repurchase Agreement dated 12/31/2010, 0.04% due 1/3/2011 with Fixed Income Clearing Corp. collateralized by $11,880,000 of U.S. Treasury Note at 1.75% due 4/15/2013; value: $12,191,850; proceeds: $11,950,086 (cost $11,950,047)	$	11,950		11,950
Total Investments in Securities 100.78% (cost $394,155,910)				502,728
Liabilities in Excess of Other Assets (0.78%)				(3,910	)
Net Assets 100.00%			$	498,818

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

See Notes to Financial Statements.

8

Statement of Assets and Liabilities

December 31, 2010

ASSETS:
Investments in securities, at value (cost $394,155,910)	$	502,727,616
Receivables:
Investment securities sold		1,442,607
Interest and dividends		350,220
Capital shares sold		8,685
Prepaid expenses and other assets		4,442
Total assets		504,533,570
LIABILITIES:
Payables:
Investment securities purchased		2,962,987
Capital shares reacquired		1,880,557
Management fee		314,180
Directors’ fees		92,630
Fund administration		16,756
Accrued expenses and other liabilities		448,510
Total liabilities		5,715,620
NET ASSETS	$	498,817,950
COMPOSITION OF NET ASSETS:
Paid-in capital	$	637,396,321
Distributions in excess of net investment income		(90,219	)
Accumulated net realized loss on investments		(247,059,858	)
Net unrealized appreciation on investments		108,571,706
Net Assets	$	498,817,950
Outstanding shares (200 million shares of common stock authorized, $.001 par value)		30,114,465
Net asset value, offering and redemption price per share (Net assets divided by outstanding shares)		$16.56

See Notes to Financial Statements.

9

Statement of Operations

For the Year Ended December 31, 2010

Investment income:
Dividends (net of foreign withholding taxes of $5,531)	$	7,357,511
Interest		2,240
Total investment income		7,359,751
Expenses:
Management fee		3,484,066
Shareholder servicing		1,665,432
Fund administration		185,817
Reports to shareholders		66,324
Professional		52,181
Custody		28,320
Directors’ fees		18,431
Other		105,867
Gross expenses		5,606,438
Expense reductions (See Note 8)		(611	)
Net expenses		5,605,827
Net investment income		1,753,924
Net realized and unrealized gain:
Net realized gain on investments		76,909,643
Net change in unrealized appreciation/depreciation on investments		27,202,122
Net realized and unrealized gain		104,111,765
Net Increase in Net Assets Resulting From Operations	$	105,865,689

See Notes to Financial Statements.

10

Statements of Changes in Net Assets

INCREASE (DECREASE) IN NET ASSETS	For the Year Ended December 31, 2010			For the Year Ended December 31, 2009
Operations:
Net investment income	$	1,753,924		$	2,077,676
Net realized gain (loss) on investments		76,909,643			(227,883,923	)
Net realized loss on redemptions in-kind (See Note 6)		–			(31,304,963	)
Net change in unrealized appreciation/depreciation on investments		27,202,122			341,935,651
Net increase in net assets resulting from operations		105,865,689			84,824,441
Distributions to shareholders from:
Net investment income		(1,792,881	)		(2,048,588	)
Capital share transactions (See Note 11):
Proceeds from sales of shares		21,920,143			28,129,424
Reinvestment of distributions		1,792,881			2,048,588
Cost of shares reacquired		(99,594,418	)		(93,415,185	)
Redemption in-kind (See Note 6)		–			(86,276,287	)
Net decrease in net assets resulting from capital share transactions		(75,881,394	)		(149,513,460	)
Net increase (decrease) in net assets		28,191,414			(66,737,607	)
NET ASSETS:
Beginning of year	$	470,626,536		$	537,364,143
End of year	$	498,817,950		$	470,626,536
Distributions in excess of net investment income	$	(90,219	)	$	(56,360	)

See Notes to Financial Statements.

11

Financial Highlights

	Year Ended 12/31
	2010			2009			2008			2007			2006
Per Share Operating Performance
Net asset value, beginning of year		$13.26			$10.51			$18.90			$21.78			$21.09
Investment operations:
Net investment income(a)		.05			.05			.19			.09			.10
Net realized and unrealized gain (loss)		3.31			2.76			(7.68	)		.07			2.47
Total from investment operations		3.36			2.81			(7.49	)		.16			2.57
Distributions to shareholders from:
Net investment income		(.06	)		(.06	)		(.21	)		(.10	)		(.11	)
Net realized gain		–			–			(.69	)		(2.94	)		(1.77	)
Total distributions		(.06	)		(.06	)		(.90	)		(3.04	)		(1.88	)
Net asset value, end of year		$16.56			$13.26			$10.51			$18.90			$21.78
Total Return(b)		25.43	%		26.62	%		(39.36	)%		.58	%		12.23	%
Ratios to Average Net Assets:
Expenses, including expense reductions		1.21	%		1.22	%		1.15	%		1.12	%		1.12	%
Expenses, excluding expense reductions		1.21	%		1.22	%		1.15	%		1.12	%		1.12	%
Net investment income		.38	%		.48	%		1.21	%		.40	%		.48	%
Supplemental Data:
Net assets, end of year (000)		$498,818			$470,627			$537,364			$1,052,158			$1,226,358
Portfolio turnover rate		68.22	%		112.51	%(c)		30.43	%		35.39	%(c)		27.96	%(c)

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

^(b) Total return does not consider the effects of sales charges or other expenses imposed by an insurance company and assumes the reinvestment of all distributions.

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

See Notes to Financial Statements.

12

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 and was incorporated under Maryland law in 1989. The Company consists of twelve 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 to seek capital appreciation through investments, primarily in equity securities, which are believed to be undervalued in the marketplace. The Fund has 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 the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

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 fair value.

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

(c) Investment Income–Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis as earned. Discounts are accreted and premiums are amortized using the effective interest method and are included in Interest income in the Statement of Operations. 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.

13

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, 2007 through December 31, 2010. 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, the Fund may incur a loss upon disposition of the securities.

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

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

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

• Level 3 - significant unobservable inputs (including 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.

14

Notes to Financial Statements (continued)

The following is a summary of the inputs used as of December 31, 2010 in valuing the Fund’s investments carried at value:

Investment Type*	Level 1 (000)		Level 2 (000)		Level 3 (000)		Total (000)
Common Stocks	$	490,778	$	–	$	–	$	490,778
Repurchase Agreement		–		11,950		–		11,950
Total	$	490,778	$	11,950	$	–	$	502,728

* 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 rate:

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

For the fiscal year ended December 31, 2010, the effective management fee paid to Lord Abbett was at an annualized rate of .75% of the Fund’s average daily net assets.

In addition, Lord Abbett provides certain administrative services to the Fund pursuant to an Administrative Services Agreement in return for a fee 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, 2010, the Fund incurred expenses of $1,625,897 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 semi-annually. Taxable net realized gains from investment transactions, reduced by allowable capital loss carryforwards, if any, are declared and distributed to shareholders at least annually. The capital loss carryforward amount, if any, is available to offset future net capital gains. Dividends and distributions to shareholders are recorded on the ex-dividend date. The amounts of dividends and distributions

15

Notes to Financial Statements (continued)

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, 2010 and 2009 was as follows:

	Year Ended 12/31/2010		Year Ended 12/31/2009
Distributions paid from:
Ordinary income	$	1,792,881	$	2,048,588
Total distributions paid	$	1,792,881	$	2,048,588

As of December 31, 2010, the components of accumulated losses on a tax-basis were as follows:

Capital loss carryforward*	$	(245,721,548	)
Temporary differences		(92,630	)
Unrealized gains–net		107,235,807
Total accumulated losses–net		(138,578,371	)

* As of December 31, 2010, the capital loss carryforward, along with the related expiration date, was as follows:

2017		Total
	$245,721,548	$	245,721,548

As of December 31, 2010, the aggregate unrealized security gains and losses based on cost for U.S. federal income tax purposes were as follows:

Tax cost	$	395,491,809
Gross unrealized gain		108,208,836
Gross unrealized loss		(973,029	)
Net unrealized security gain	$	107,235,807

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

16

Notes to Financial Statements (continued)

Permanent items identified during the fiscal year ended December 31, 2010 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
$5,098	$	12,863	$	(17,961	)

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

On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the “Modernization Act”) was signed by the President. The Modernization Act includes numerous provisions that generally become effective for taxable years beginning after the date of enactment. Management is currently assessing the impact of the Modernization Act as it relates to the Fund.

5.    PORTFOLIO SECURITIES TRANSACTIONS

Purchases and sales of investment securities (excluding short-term investments) for the fiscal year ended December 31, 2010 were as follows:

Purchases	Sales
$305,753,452	$	381,603,893

There were no purchases or sales of U.S. Government securities for the fiscal year ended December 31, 2010.

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 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, which is included on the Statements of Changes in Net Assets.

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 an arrangement with its transfer agent and custodian, whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the Fund’s expenses.

17

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 and mid-sized company 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. 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.

Due to the Fund’s exposure to foreign companies (and ADRs), 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, 2010			Year Ended December 31, 2009
Shares sold		1,525,333			2,622,913
Reinvestment of distributions		108,562			153,108
Shares reacquired		(7,021,862	)		(8,819,233	)
Redemptions in-kind		–			(9,596,917	)
Decrease		(5,387,967	)		(15,640,129	)

18

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 of Mid-Cap Value Portfolio, one of the portfolios constituting the Lord Abbett Series Fund, Inc. (the “Company”), including the schedule of investments, as of December 31, 2010, 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, 2010, 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 Mid-Cap Value Portfolio of the Lord Abbett Series Fund, Inc. as of December 31, 2010, 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 15, 2011

19

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 the investment adviser provides, and annually considers whether to renew the contract with the adviser. Generally, each Director holds office until his/her successor is elected and qualified or until his/her earlier resignation or removal, as provided in the Company’s organizational documents.

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

Interested Directors

The following Directors are associated with Lord Abbett and are “interested persons” of the Company as defined in the Act. Mr. Dow and Ms. Foster are officers and directors or trustees of each of the 13 Lord Abbett-sponsored funds, which consist of 53 portfolios or series.

Name, Address and Year of Birth	Current Position and Length of Service with the Company	Principal Occupation and Other Directorships During Past Five Years
Robert S. Dow Lord, Abbett & Co. LLC 90 Hudson Street Jersey City, NJ 07302 (1945)	Director since 1995 and Chairman since 1996	Principal Occupation: Senior Partner of Lord Abbett (since 2007) and was formerly Managing Partner (1996 - 2007) and Chief Investment Officer (1995 - 2007), joined Lord Abbett in 1972. Other Directorships: None.
Daria L. Foster Lord, Abbett & Co. LLC 90 Hudson Street Jersey City, NJ 07302 (1954)	Director and President since 2006	Principal Occupation: Managing Partner of Lord Abbett (since 2007), and was formerly Director of Marketing and Client Service, joined Lord Abbett in 1990. Other Directorships: None.

Independent Directors

The following Independent Directors also are directors or trustees of each of the 13 Lord Abbett-sponsored funds, which consist of 53 portfolios or series.

Name, Address and Year of Birth	Current Position and Length of Service with the Company	Principal Occupation and Other Directorships During Past Five Years
E. Thayer Bigelow Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1941)	Director since 1994	Principal Occupation: Managing General Partner, Bigelow Media, LLC (since 2000); Senior Adviser, Time Warner Inc. (1998 - 2000). Other Directorships: Currently serves as director of Crane Co. (since 1984) and Huttig Building Products Inc. (since 1998). Previously served as a director of R.H. Donnelley Inc. (2009 - 2010) and Adelphia Communications Inc. (2003 - 2007).

20

Basic Information About Management (continued)

Name, Address and Year of Birth	Current Position and Length of Service with the Company	Principal Occupation and Other Directorships During Past Five Years
Robert B. Calhoun, Jr. Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1942)	Director since 1998	Principal Occupation: Senior Advisor of Monitor Clipper Partners, a private equity investment fund (since 1997); President of Clipper Asset Management Corp. (1991 - 2009). Other Directorships: Previously served as a director of Avondale, Inc. (1991 - 2005) and Interstate Bakeries Corp. (1991 - 2008).
Evelyn E. Guernsey Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1955)	Director since 2011	Principal Occupation: CEO, Americas of J.P. Morgan Asset Management (2004 - 2010). Other Directorships: None.
Julie A. Hill Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1946)	Director since 2004	Principal Occupation: Owner and CEO of The Hill Company, a business consulting firm (since 1998). Other Directorships: Currently serves as director of WellPoint, Inc., a health benefits company (since 1994). Previously served as a director of Resources Connection, Inc., a consulting firm (2004 - 2007).
Franklin W. Hobbs Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1947)	Director since 2001	Principal Occupation: Advisor of One Equity Partners, a private equity firm (since 2004). Other Directorships: Currently serves as a director and Chairman of the Board of Ally Financial 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	Principal Occupation: Chairman of Spencer Stuart (U.S.), an executive search consulting firm (since 1996). Other Directorships: Currently serves as director of Ace, Ltd. (since 1997). Previously served as a director of Hewitt Associates, Inc. (2004 - 2010).
James L.L. Tullis Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1947)	Director since 2006	Principal Occupation: CEO of Tullis-Dickerson and Co. Inc., a venture capital management firm (since 1990). Other Directorships: Currently serves as director of Crane Co. (since 1998). Previously served as a director of Viacell Inc. (2003 - 2007).

21

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 also may be officers of the other Lord Abbett-sponsored funds and maintain offices at 90 Hudson Street, Jersey City, NJ 07302. Unless otherwise indicated, the position(s) and title(s) listed under the “Principal Occupation” column indicate each officer’s position(s) and title(s) with Lord Abbett.

Name and Year of Birth	Current Position with the 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 of Lord Abbett (since 2007), and was formerly Managing Partner (1996 - 2007) and Chief Investment Officer (1995 - 2007), joined Lord Abbett in 1972.
Daria L. Foster (1954)	President	Elected in 2006	Managing Partner of Lord Abbett (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.
Robert A. Lee (1969)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 1997.
Vincent J. McBride (1964)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 2003.
Andrew H. O’Brien (1973)	Executive Vice President	Elected in 2010	Partner and Portfolio Manager, joined Lord Abbett in 1998.
F. Thomas O’Halloran, III (1955)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 2001.

22

Basic Information About Management (continued)

Name and Year of Birth	Current Position with the Company	Length of Service of Current Position	Principal Occupation During Past Five Years
Harold E. Sharon (1960)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 2003.
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.
A. Edward Allinson (1961)	Vice President	Elected in 2011	Portfolio Manager, joined Lord Abbett in 2005.
Sean J. Aurigemma (1969)	Vice President	Elected in 2010	Portfolio Manager, joined Lord Abbett in 2007 and was formerly a Managing Director and Portfolio Manager at Morgan Stanley (1999 - 2007).
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.
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).

23

Basic Information About Management (continued)

Name and Year of Birth	Current Position with the Company	Length of Service of Current Position	Principal Occupation During Past Five Years
David J. Linsen (1974)	Vice President	Elected in 2008	Partner and Director, 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).
Thomas B. Maher (1967)	Vice President	Elected in 2010	Partner and Portfolio Manager, joined Lord Abbett in 2003.
Justin C. Maurer (1969)	Vice President	Elected in 2010	Partner and Portfolio Manager, joined Lord Abbett in 2001.
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	Partner and Senior Deputy General Counsel, joined Lord Abbett in 2007 and was formerly an Executive Vice President and the General Counsel at Cohen & Steers Capital Management, Inc. (1999 - 2007).
Francis T. Timons (1969)	Vice President	Elected in 2010	Portfolio Manager, joined Lord Abbett in 2007 and was formerly a Research Analyst at Robert W. Baird & Co. (2004 - 2007).

24

Basic Information About Management (concluded)

Name and Year of Birth	Current Position with the Company	Length of Service of Current Position	Principal Occupation During Past Five Years
Arthur K. Weise (1970)	Vice President	Elected in 2010	Portfolio Manager, joined Lord Abbett in 2007 and was formerly a Managing Director, Portfolio Manager and Analyst at Bank of New York Institutional Asset Management (2005 - 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 15 and 16, 2010, 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, including information about the investment performance of the Fund compared to the performance of its benchmark, 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 the results of the examination of the portfolio management team by members of the Contract Committee during the year, which included a meeting with the portfolio management team. Additionally, the Board took into consideration its familiarity with Lord Abbett gained through its previous meetings and discussions during the course of the year.

The materials received by the Board included, but were not limited to: (1) information provided by Lipper Inc. (“Lipper”) regarding the investment performance of the Fund compared to the investment performance of one or more groups of funds with substantially similar investment objectives, including a group of funds within the same investment classification/objective (each group a “performance universe”) and to the investment performance of an appropriate fund index; (2) information on the expense ratios, effective management fee rates, and other expense components for the Fund and similar funds (the “peer group”); (3) information provided by Lord Abbett on the projected expense ratios, management fee rates, and other expense components for the Fund; (4) sales and redemption information for the Fund; (5) information regarding Lord Abbett’s financial condition; (6) an analysis of the relative profitability of the management agreement to Lord Abbett; (7) information provided by Lord Abbett regarding the investment management fees Lord Abbett receives from its other advisory clients maintaining accounts with a similar investment strategy as the Fund; (8) information regarding the distribution arrangements of the Fund; and (9) 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 previously had 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 considered the investment performance and expenses of the Fund in relation to two different peer universes, the first consisting of mid-cap core funds underlying variable insurance products and the second consisting of mid-cap value funds underlying variable insurance products. As to the first performance universe, the Board observed that the Fund’s investment performance was in the fourth quintile for the nine-month and one-year periods, the fifth quintile for the three-year and five-year periods, and the second

26

quintile for the ten-year period. The Board also observed that the investment performance was lower than that of the Lipper Variable Underlying Funds Mid-Cap Core 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. As to the second performance universe, the Board observed that the Fund’s investment performance was in the third quintile for the nine-month and one-year periods, the fifth quintile for the three-year and five-year periods, and the second quintile for the ten-year period. The Board also observed that the investment performance was higher than that of the Lipper Variable Underlying Funds Mid-Cap Value Index for the nine-month, one-year, and ten-year periods and lower than that of the Index for the 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 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 Howard Hansen resigned from Lord Abbett, at which time Robert P. Fetch joined Jeffrey Diamond in exercising primary responsibility for the daily management of the Fund’s portfolio. The Board noted that Mr. Fetch had had a very strong long-term performance record managing the 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 investment performance of the Fund in relation to two different expense groups, the first consisting of mid-cap core funds underlying variable insurance products and the second consisting of mid-cap value funds underlying variable insurance products. As to the first expense group, the Board observed that for the fiscal year ended December 31, 2009 the contractual management and administrative services fees were approximately four basis points above the median of the peer group and the actual management and administrative services fees were approximately the same as the median of the peer group. The Board also observed that for the fiscal year ended December 31, 2009 the total expense ratio of the Fund was approximately ten basis points above the median of the peer group. As to the second expense group, the Board observed that for the fiscal year ended December 31, 2009 the contractual management and administrative services fees were approximately seven basis points above the median of the peer group and the actual management and administrative services fees were approximately nine basis points above the median of the peer group. The Board also observed that for the fiscal year ended December 31, 2009 the total expense ratio of the Fund was approximately twenty basis points above the median of the peer group. The Board also considered the projected expense ratio and how that expense ratio would relate to the expense ratios of the peer groups.

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

27

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 increased in its 2010 fiscal year. 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.

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

100% of the ordinary income distributions paid by the Fund during the year is qualified dividend income.

For corporate shareholders, 100% of the ordinary income distributions is 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-2-1210

(02/11)

2010

LORD ABBETT

ANNUAL

REPORT    

Lord Abbett

Series Fund—Total Return Portfolio

For the fiscal period ended December 31, 2010

Lord Abbett Series Fund — Total Return Portfolio*

Annual Report

For the fiscal period ended December 31, 2010

*    The Fund commenced operations on April 16, 2010, and investment performance began on May 1, 2010.

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 performance of the Lord Abbett Series Fund — Total Return Portfolio for the period ended December 31, 2010. 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

For the eight-month period ended December 31, 2010, the Fund returned 4.90%, 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. Universal Index,¹ which returned 3.87% over the same period.

The Treasury market yield curve maintained its steep slope, as the Federal Reserve kept the federal funds rate near 0%, which has anchored the front end of the yield curve at very low interest rate levels. Treasury yields fluctuated considerably throughout the year, as investor sentiment alternated between fears of a double-dip recession and concern that a massive monetary stimulus might spark inflation. Corporate spreads versus Treasuries tightened over the past year. Demand for corporate bonds increased as investors continued to reach for yield amid an environment with historically low interest rates.

1

The most significant contributor to the Fund’s performance was its position in both investment-grade and high-yield corporate bonds. Investors’ increased willingness to assume credit risk led to outperformance of lower-rated corporate bonds over higher-rated issues. Our holdings in investment-grade corporates helped relative Fund performance as the Fund concentrated on ‘BBB’ rated bonds, which outperformed higher-rated issues. A position in high-yield corporates also contributed greatly to Fund performance, as lower-rated issues outperformed higher-rated corporates.

While the CMBS market has been one of the best performing sectors of the bond market during the past year, we concentrated on those securities with the highest levels of credit enhancement, which detracted from relative Fund performance as lower-quality issues outperformed their higher-quality counterparts. Our exposure to emerging market debt also detracted from relative Fund performance as global markets had a volatile run due to concerns over a weakening global economy. This modest drag on Fund performance was more than offset, however, by our significant exposure to the credit sectors such as corporate bonds and CMBS.

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 Barclays Capital U.S. Universal Index represents the union of the U.S. Aggregate Index, the U.S. High-Yield Corporate Index, the 144A Index, the Eurodollar index, the Emerging Markets Index, the non-ERISA portion of the CMBS Index, and the CMBS High-Yield Index. The index covers U.S. dollar-denominated, taxable bonds that are rated either investment-grade or below investment-grade.

Unless otherwise specified, the index reflects total return, with all dividends reinvested. The Index is unmanaged, does not reflect the deduction of fees or expenses, and is not available for direct investment.

Important Performance and Other Information

Performance data quoted in the following pages reflect past performance and are no guarantee of future results. Current performance may be higher or lower than the performance quoted. The investment return and principal value of an investment in 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 shown, 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 above are as of December 31, 2010; 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.

2

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. Universal Index and the 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 the period, expenses of the Fund were waived or reimbursed by Lord Abbett; without such waiver or reimbursement of expenses, the Fund’s returns would have been lower. Past performance is no guarantee of future results.

Total Return for the

Period Ended December 31, 2010

	Life of Class
Class VC2		4.90%	*

¹    Performance for each unmanaged index does not reflect any fees or expenses. The performance of each index is not necessarily representative of the Fund’s performance. Performance for each index began on April 30, 2010.

²    The Class VC shares commenced operations on April 16, 2010. Performance for the Class began on May 1, 2010.

*    Because Class VC shares have existed for less than one year, average annual returns are not provided.

3

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, 2010 through December 31, 2010).

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 7/1/10 – 12/31/10” 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.

4

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†
	7/1/10		12/31/10		7/1/10 — 12/31/10
Class VC
Actual	$	1,000.00	$	1,023.90	$	3.26
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,022.00	$	3.26

^† Net expenses are equal to the Fund's annualized expense ratio of 0.64%, 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, 2010

Sector*	%**
Auto		0.47%
Basic Industry		2.77%
Capital Goods		0.93%
Consumer Cyclical		2.08%
Consumer Discretionary		0.55%
Consumer Non-Cyclical		0.08%
Consumer Services		1.54%
Consumer Staples		1.02%
Energy		3.14%
Financial Services		22.87%
Foreign Government		0.17%
Healthcare		1.69%
Integrated Oils		0.71%
Materials & Processing		3.34%
Municipal		2.36%
Other		0.32%
Producer Durables		0.63%
Technology		1.65%
Telecommunications		0.67%
Transportation		1.65%
U.S. Government		41.52%
Utilities		2.74%
Short-Term Investment		7.10%
Total		100.00%

* A sector may comprise several industries.

** Represents percent of total investments.

5

Schedule of Investments

December 31, 2010

Investments	Interest Rate			Maturity Date		Principal Amount (000)		Value
LONG-TERM INVESTMENTS 106.18%
ASSET-BACKED SECURITIES 4.96%
Automobiles 3.05%
Bank of America Auto Trust 2010-2 A2		0.91%			10/15/2012	$	5	$	5,010
BMW Vehicle Lease Trust 2009-1 A3		2.91%			3/15/2012		3		2,906
Capital Auto Receivables Asset Trust 2008-1 A3B		1.26%	#		8/15/2012		3		2,877
Capital One Prime Auto Receivables Trust 2007-1 A4		0.28%	#		12/15/2012		4		4,173
CarMax Auto Owner Trust 2010-3 A2		0.75%			9/16/2013		5		5,001
Chrysler Financial Auto Securitization Trust 2009-B A2		1.15%			11/8/2011		9		8,639
Chrysler Financial Auto Securitization Trust 2010-A A2		0.69%			1/8/2013		5		5,002
Ford Credit Auto Owner Trust 2007-B A3B		0.60%	#		11/15/2011		1		1,156
Ford Credit Auto Owner Trust 2008-A A3B		1.06%	#		4/15/2012		11		10,701
Harley-Davidson Motorcycle Trust 2009-2 A2		2.00%			7/15/2012		5		4,688
Hyundai Auto Receivables Trust 2009-A A2		1.11%			2/15/2012		2		1,660
Hyundai Auto Receivables Trust 2010-A A2		0.86%			11/15/2012		5		5,007
Nissan Auto Lease Trust 2010-A A2		1.10%			3/15/2013		5		5,007
Volkswagen Auto Loan Enhanced Trust 2010-1 A2		0.66%			5/21/2012		4		3,595
World Omni Auto Receivables Trust 2007-A A4		0.26%	#		11/15/2012		3		3,351
Total									68,773
Credit Cards 1.46%
Bank of America Credit Card Trust 2006-A15		0.26%	#		4/15/2014		5		4,992
Bank of America Credit Card Trust 2007-A2		0.28%	#		6/17/2013		5		5,000
Capital One Multi-Asset Execution Trust 2004-A5		0.41%	#		3/17/2014		10		9,997
Capital One Multi-Asset Execution Trust 2005-A1		0.33%	#		1/15/2015		5		4,981
Discover Card Master Trust I 2006-1 A2		0.31%	#		8/16/2013		8		7,999
Total									32,969
Other 0.45%
CNH Equipment Trust 2007-A A4		0.30%	#		9/17/2012		2		2,472
SLM Student Loan Trust 2006-3 A3		0.328%	#		4/25/2017		8		7,698
Total									10,170
Total Asset-Backed Securities (cost $111,760)									111,912
CORPORATE BONDS 38.22%
Aerospace/Defense 0.18%
Alliant Techsystems, Inc.		6.75%			4/1/2016		3		3,124

See Notes to Financial Statements.

6

Schedule of Investments (continued)

December 31, 2010

Investments	Interest Rate		Maturity Date		Principal Amount (000)			Value
Aerospace/Defense (continued)
Embraer Overseas Ltd. (Brazil)(a)		6.375%		1/15/2020	$	1		$	1,060
Total									4,184
Air Transportation 1.03%
Continental Airlines, Inc.		4.75%		1/12/2021		1			1,000
Continental Airlines, Inc.		6.545%		2/2/2019		–	(b)		1,007
Qantas Airways Ltd. (Australia)†(a)		6.05%		4/15/2016		10			10,653
Southwest Airlines Co.		6.65%		8/1/2022		–	(b)		987
Southwest Airlines Co.†		10.50%		12/15/2011		9			9,693
Total									23,340
Apparel 0.09%
Phillips-Van Heusen Corp.		7.75%		11/15/2023		2			2,112
Auto Parts: Original Equipment 0.19%
Cooper-Standard Automotive, Inc.†		8.50%		5/1/2018		1			1,065
ITC Holdings Corp.†		5.50%		1/15/2020		3			3,146
Total									4,211
Auto: Replacement Parts 0.09%
Snap-on, Inc.		4.25%		1/15/2018		2			2,011
Automotive 0.22%
IDEX Corp.		4.50%		12/15/2020		3			2,947
Tenneco, Inc.†		6.875%		12/15/2020		2			2,055
Total									5,002
Banks: Diversified 2.35%
Bank of America Corp.		2.10%		4/30/2012		15			15,316
Bank of America Corp.		5.625%		7/1/2020		5			5,107
Bank of America Corp.		5.875%		1/5/2021		5			5,183
Bank of America Corp.		7.375%		5/15/2014		5			5,562
CIT Group, Inc.		7.00%		5/1/2017		9			9,045
Credit Suisse AG (Switzerland)(a)		5.40%		1/14/2020		2			2,046
Goldman Sachs Group, Inc. (The)		5.375%		3/15/2020		4			4,141
Goldman Sachs Group, Inc. (The)		6.125%		2/15/2033		4			4,251
Morgan Stanley		7.25%		4/1/2032		2			2,296
Total									52,947

See Notes to Financial Statements.

7

Schedule of Investments (continued)

December 31, 2010

Investments	Interest Rate		Maturity Date		Principal Amount (000)		Value
Banks: Money Center 0.26%
SVB Financial Group		5.375%		9/15/2020	$	6	$	5,780
Beverages 0.89%
Anheuser-Busch InBev Worldwide, Inc.†		8.20%		1/15/2039		2		2,722
Bacardi Ltd.†		7.45%		4/1/2014		15		17,267
Total								19,989
Biotechnology Research & Production 0.73%
Amgen, Inc.		5.70%		2/1/2019		4		4,555
Bio-Rad Laboratories, Inc.		7.50%		8/15/2013		2		2,038
Bio-Rad Laboratories, Inc.		8.00%		9/15/2016		9		9,810
Total								16,403
Broadcasting 0.33%
Cox Communications, Inc.		4.625%		6/1/2013		5		5,354
Salem Communications Corp.		9.625%		12/15/2016		2		2,130
Total								7,484
Brokers 0.21%
Raymond James Financial, Inc.		8.60%		8/15/2019		4		4,748
Building Materials 0.09%
Building Materials Corp. of America†		7.00%		2/15/2020		2		2,065
Business Services 0.23%
Hillenbrand, Inc.		5.50%		7/15/2020		3		2,994
StoneMor Operating LLC/Cornerstone Family Services/Osiris Holdings		10.25%		12/1/2017		2		2,115
Total								5,109
Cable Services 1.07%
CCH II LLC/CCH II Capital Corp.		13.50%		11/30/2016		5		5,988
Comcast Cable Communications LLC		6.75%		1/30/2011		10		10,041
Time Warner Cable, Inc.		7.50%		4/1/2014		7		8,034
Total								24,063
Capital Goods 0.91%
Republic Services, Inc.		6.75%		8/15/2011		20		20,649

See Notes to Financial Statements.

8

Schedule of Investments (continued)

December 31, 2010

Investments	Interest Rate			Maturity Date		Principal Amount (000)		Value
Chemicals 1.73%
Airgas, Inc.		7.125%			10/1/2018	$	3	$	3,330
Ashland, Inc.		9.125%			6/1/2017		2		2,315
Basell Finance Co. BV (Netherlands)†(a)		8.10%			3/15/2027		3		3,248
Dow Chemical Co. (The)		9.40%			5/15/2039		2		2,912
Incitec Pivot Finance LLC†		6.00%			12/10/2019		5		5,129
Methanex Corp. (Canada)(a)		6.00%			8/15/2015		2		1,926
Methanex Corp. (Canada)(a)		8.75%			8/15/2012		3		3,172
Mosaic Co. (The)†		7.625%			12/1/2016		3		3,229
Nova Chemicals Corp. (Canada)(a)		3.568%	#		11/15/2013		1		988
Phibro Animal Health Corp.†		9.25%			7/1/2018		2		2,070
Yara International ASA (Norway)†(a)		5.25%			12/15/2014		10		10,752
Total									39,071
Coal 0.28%
Drummond Co., Inc.		7.375%			2/15/2016		4		4,165
Drummond Co., Inc.†		9.00%			10/15/2014		2		2,145
Total									6,310
Communications Equipment 0.09%
Harris Corp.		6.15%			12/15/2040		2		2,054
Computer Hardware 0.19%
Maxim Integrated Products, Inc.		3.45%			6/14/2013		2		2,046
Seagate Technology International†		10.00%			5/1/2014		2		2,355
Total									4,401
Computer Software 0.84%
BMC Software, Inc.		7.25%			6/1/2018		9		10,427
Brocade Communications Systems, Inc.		6.875%			1/15/2020		2		2,140
Intuit, Inc.		5.75%			3/15/2017		2		2,183
SunGard Data Systems, Inc.		10.25%			8/15/2015		4		4,215
Total									18,965
Consumer Products 0.19%
Scotts Miracle-Gro Co. (The)		7.25%			1/15/2018		4		4,220
Containers 0.83%
Ball Corp.		6.625%			3/15/2018		7		7,158
Pactiv Corp.		7.95%			12/15/2025		1		877

See Notes to Financial Statements.

9

Schedule of Investments (continued)

December 31, 2010

Investments	Interest Rate		Maturity Date		Principal Amount (000)		Value
Containers (continued)
Rock-Tenn Co.		5.625%		3/15/2013	$	6	$	6,225
Rock-Tenn Co.		9.25%		3/15/2016		4		4,380
Total								18,640
Diversified 0.37%
BHP Billiton Finance USA Ltd. (Australia)(a)		6.50%		4/1/2019		7		8,338
Drugs 0.24%
Celgene Corp.		3.95%		10/15/2020		3		2,858
Pfizer, Inc.		7.20%		3/15/2039		2		2,597
Total								5,455
Electric: Power 2.80%
Black Hills Corp.		9.00%		5/15/2014		3		3,446
Bruce Mansfield Unit		6.85%		6/1/2034		2		2,088
CenterPoint Energy Houston Electric LLC		5.75%		1/15/2014		5		5,524
CenterPoint Energy Houston Electric LLC		7.00%		3/1/2014		2		2,287
Connecticut Light & Power Co. (The)		6.35%		6/1/2036		2		2,283
Coso Geothermal Power Holdings LLC†		7.00%		7/15/2026		6		5,636
Duquesne Light Holdings, Inc.†		6.40%		9/15/2020		5		4,972
EDF SA (France)†(a)		6.95%		1/26/2039		3		3,562
Elm Road Generating Station Supercritical LLC†		6.09%		2/11/2040		2		2,043
KCP&L Greater Missouri Operations Co.		11.875%		7/1/2012		3		3,404
NiSource Finance Corp.		10.75%		3/15/2016		3		4,016
North American Energy Alliance LLC/North American Energy Alliance Finance Corp.†		10.875%		6/1/2016		2		2,230
NV Energy, Inc.		6.25%		11/15/2020		4		4,040
Old Dominion Electric Cooperative		6.25%		6/1/2011		5		5,112
PNM Resources, Inc.		9.25%		5/15/2015		1		1,110
Potomac Edison Co. (The)		5.35%		11/15/2014		2		2,183
Tampa Electric Co.		6.55%		5/15/2036		2		2,233
Texas-New Mexico Power Co.†		9.50%		4/1/2019		3		3,825
Wisconsin Electric Power Co.		5.625%		5/15/2033		3		3,116
Total								63,110
Electrical Equipment 0.15%
Public Service Co. of New Mexico		7.95%		5/15/2018		3		3,376

See Notes to Financial Statements.

10

Schedule of Investments (continued)

December 31, 2010

Investments	Interest Rate		Maturity Date		Principal Amount (000)		Value
Electrical: Household 0.16%
Legrand France SA (France)(a)		8.50%		2/15/2025	$	3	$	3,519
Electronics 0.28%
Sensus USA, Inc.		8.625%		12/15/2013		3		3,060
Thomas & Betts Corp.		5.625%		11/15/2021		3		3,188
Total								6,248
Electronics: Semi-Conductors/Components 0.29%
Agilent Technologies, Inc.		6.50%		11/1/2017		2		2,220
KLA-Tencor Corp.		6.90%		5/1/2018		4		4,406
Total								6,626
Energy Equipment & Services 0.38%
Cameron International Corp.		6.375%		7/15/2018		2		2,221
Cameron International Corp.		7.00%		7/15/2038		3		3,287
Michigan Consolidated Gas Co.		5.70%		3/15/2033		3		3,028
Total								8,536
Engineering & Contracting Services 0.09%
Aeropuertos Argentina 2000 SA (Argentina)†(a)		10.75%		12/1/2020		2		2,127
Environmental Services 0.20%
Casella Waste Systems, Inc.		11.00%		7/15/2014		4		4,445
Fertilizers 0.48%
Potash Corp. of Saskatchewan, Inc. (Canada)(a)		5.25%		5/15/2014		7		7,660
Potash Corp. of Saskatchewan, Inc. (Canada)(a)		5.875%		12/1/2036		3		3,114
Total								10,774
Financial Services 3.60%
Aon Corp.		5.00%		9/30/2020		2		2,022
CME Group Index Services LLC†		4.40%		3/15/2018		8		8,064
General Electric Capital Corp.		2.00%		9/28/2012		15		15,328
General Electric Capital Corp.		6.875%		1/10/2039		33		38,265
Nomura Holdings, Inc. (Japan)(a)		6.70%		3/4/2020		3		3,216
Petrobras International Finance Co. (Brazil)(a)		6.875%		1/20/2040		2		2,111
Prudential Financial, Inc.		6.20%		11/15/2040		1		1,062
Prudential Financial, Inc.		6.625%		6/21/2040		1		1,120
TD Ameritrade Holding Corp.		5.60%		12/1/2019		4		4,196

See Notes to Financial Statements.

11

Schedule of Investments (continued)

December 31, 2010

Investments	Interest Rate		Maturity Date		Principal Amount (000)		Value
Financial Services (continued)
Woodside Finance Ltd. (Australia)†(a)		8.125%		3/1/2014	$	5	$	5,757
Total								81,141
Financial: Miscellaneous 0.45%
NASDAQ OMX Group, Inc. (The)		5.25%		1/16/2018		5		5,051
NASDAQ OMX Group, Inc. (The)		5.55%		1/15/2020		5		5,061
Total								10,112
Food 0.19%
Southern States Cooperative, Inc.†		11.25%		5/15/2015		2		2,130
TreeHouse Foods, Inc.		7.75%		3/1/2018		2		2,173
Total								4,303
Gaming 0.04%
Downstream Development Authority Quapaw Tribe of Oklahoma†		12.00%		10/15/2015		1		991
Health Care Products 0.58%
Biomet, Inc.		11.625%		10/15/2017		5		5,550
HCA, Inc.		8.50%		4/15/2019		5		5,500
HCA, Inc. PIK		9.625%		11/15/2016		2		2,147
Total								13,197
Health Care Services 0.19%
Omega Healthcare Investors, Inc.		7.50%		2/15/2020		4		4,225
Hospital Management 0.19%
Universal Health Services, Inc.		6.75%		11/15/2011		2		2,075
Universal Health Services, Inc.		7.125%		6/30/2016		2		2,171
Total								4,246
Household Furnishings 0.10%
Simmons Bedding Co.†		11.25%		7/15/2015		2		2,170
Industrial Products 0.19%
Vale Overseas Ltd. (Brazil)(a)		6.875%		11/21/2036		4		4,410
Insurance 0.38%
Aflac, Inc.		6.45%		8/15/2040		2		2,055
Aflac, Inc.		8.50%		5/15/2019		2		2,477

See Notes to Financial Statements.

12

Schedule of Investments (continued)

December 31, 2010

Investments	Interest Rate		Maturity Date		Principal Amount (000)		Value
Insurance (continued)
Fidelity National Financial, Inc.		6.60%		5/15/2017	$	2	$	1,998
Willis North America, Inc.		7.00%		9/29/2019		2		2,088
Total								8,618
Investment Management Companies 0.24%
Lazard Group LLC		7.125%		5/15/2015		5		5,389
Leasing 0.10%
International Lease Finance Corp.†		8.625%		9/15/2015		2		2,155
Leisure 0.27%
Royal Caribbean Cruises Ltd.		6.875%		12/1/2013		1		1,065
Royal Caribbean Cruises Ltd.		7.50%		10/15/2027		2		1,973
Speedway Motorsports, Inc.		6.75%		6/1/2013		3		3,037
Total								6,075
Machinery: Agricultural 0.14%
Lorillard Tobacco Co.		8.125%		5/1/2040		3		3,085
Machinery: Industrial/Specialty 0.19%
CPM Holdings, Inc.†		10.625%		9/1/2014		2		2,150
SPX Corp.†		6.875%		9/1/2017		2		2,135
Total								4,285
Machinery: Oil Well Equipment & Services 0.32%
National Oilwell Varco, Inc.		6.125%		8/15/2015		7		7,229
Media 0.89%
DirecTV Holdings LLC/DirecTV Financing Co., Inc.		6.375%		6/15/2015		12		12,465
DirecTV Holdings LLC/DirecTV Financing Co., Inc.		7.625%		5/15/2016		2		2,220
Nielsen Finance LLC/Nielsen Finance Co.		11.625%		2/1/2014		2		2,325
Rainbow National Services LLC†		10.375%		9/1/2014		2		2,085
Videotron Ltee (Canada)(a)		6.875%		1/15/2014		1		1,017
Total								20,112
Metals & Minerals: Miscellaneous 1.19%
AngloGold Ashanti Holdings plc (United Kingdom)(a)		6.50%		4/15/2040		1		1,026
Compass Minerals International, Inc.		8.00%		6/1/2019		2		2,190
FMG Resources (August 2006 Pty) Ltd. (Australia)†(a)		6.875%		2/1/2018		5		5,000

See Notes to Financial Statements.

13

Schedule of Investments (continued)

December 31, 2010

Investments	Interest Rate		Maturity Date		Principal Amount (000)		Value
Metals & Minerals: Miscellaneous (continued)
Freeport-McMoRan Copper & Gold, Inc.		8.375%		4/1/2017	$	6	$	6,646
Rain CII Carbon LLC and CII Carbon Corp.†		8.00%		12/1/2018		3		3,090
Teck Resources Ltd. (Canada)(a)		10.25%		5/15/2016		2		2,478
Teck Resources Ltd. (Canada)(a)		10.75%		5/15/2019		5		6,510
Total								26,940
Natural Gas 0.40%
Florida Gas Transmission Co. LLC†		7.90%		5/15/2019		2		2,422
Southern Star Central Gas Pipeline, Inc.†		6.00%		6/1/2016		2		2,179
Spectra Energy Capital LLC		5.50%		3/1/2014		4		4,354
Total								8,955
Oil 1.60%
Brigham Exploration Co.†		8.75%		10/1/2018		2		2,170
Continental Resources, Inc.		7.375%		10/1/2020		1		1,065
Continental Resources, Inc.		8.25%		10/1/2019		2		2,230
Ecopetrol SA (Colombia)(a)		7.625%		7/23/2019		1		1,160
Holly Corp.		9.875%		6/15/2017		2		2,190
Pan American Energy LLC (Argentina)†(a)		7.875%		5/7/2021		3		3,202
Panhandle Eastern Pipeline Co. LP		8.125%		6/1/2019		10		11,545
QEP Resources, Inc.		6.875%		3/1/2021		5		5,275
Rosetta Resources, Inc.		9.50%		4/15/2018		2		2,170
Shell International Finance BV (Netherlands)(a)		5.50%		3/25/2040		2		2,151
Swift Energy Co.		7.125%		6/1/2017		2		2,015
Whiting Petroleum Corp.		7.00%		2/1/2014		1		1,055
Total								36,228
Oil: Crude Producers 0.61%
Genesis Energy LP/Genesis Energy Finance Corp.†		7.875%		12/15/2018		2		1,995
Kinder Morgan Finance Co. LLC†		6.00%		1/15/2018		2		1,975
NGPL PipeCo LLC†		6.514%		12/15/2012		2		2,160
NGPL PipeCo LLC†		7.119%		12/15/2017		1		1,096
Noble Energy, Inc.		5.25%		4/15/2014		2		2,160
Southeast Supply Header LLC†		4.85%		8/15/2014		2		2,099
Southwestern Energy Co.		7.50%		2/1/2018		2		2,265
Total								13,750

See Notes to Financial Statements.

14

Schedule of Investments (continued)

December 31, 2010

Investments	Interest Rate		Maturity Date		Principal Amount (000)		Value
Oil: Integrated Domestic 0.81%
Ferrellgas LP/Ferrellgas Finance Corp.†		6.50%		5/1/2021	$	2	$	1,960
National Fuel Gas Co.		8.75%		5/1/2019		3		3,636
Occidental Petroleum Corp.		9.25%		8/1/2019		2		2,719
Questar Gas Co.		7.20%		4/1/2038		3		3,514
Questar Pipeline Co.		5.83%		2/1/2018		3		3,320
Trinidad Drilling Ltd. (Canada)†(a)		7.875%		1/15/2019		2		2,030
Weatherford International Ltd.		6.75%		9/15/2040		1		1,054
Total								18,233
Paper & Forest Products 1.70%
Clearwater Paper Corp.†		7.125%		11/1/2018		2		2,075
Clearwater Paper Corp.		10.625%		6/15/2016		3		3,442
Georgia-Pacific LLC†		7.125%		1/15/2017		3		3,210
Georgia-Pacific LLC		8.875%		5/15/2031		3		3,705
PH Glatfelter Co.		7.125%		5/1/2016		2		2,082
Plum Creek Timberlands LP		4.70%		3/15/2021		6		5,722
Plum Creek Timberlands LP		5.875%		11/15/2015		3		3,233
Sino-Forest Corp. (Canada)†(a)		6.25%		10/21/2017		2		2,028
Smurfit Kappa Funding plc (Ireland)(a)		7.75%		4/1/2015		2		2,060
Weyerhaeuser Co.		6.95%		8/1/2017		5		5,408
Weyerhaeuser Co.		7.375%		10/1/2019		5		5,471
Total								38,436
Pollution Control 0.24%
Clean Harbors, Inc.		7.625%		8/15/2016		5		5,337
Railroads 0.15%
Burlington Northern Santa Fe LLC		7.00%		2/1/2014		3		3,431
Real Estate Investment Trusts 0.83%
AvalonBay Communities, Inc.		3.95%		1/15/2021		2		1,912
Developers Diversified Realty Corp.		7.875%		9/1/2020		2		2,244
Entertainment Properties Trust†		7.75%		7/15/2020		2		2,125
Federal Realty Investment Trust		4.50%		2/15/2011		5		5,020
Federal Realty Investment Trust		5.40%		12/1/2013		3		3,232
Federal Realty Investment Trust		5.90%		4/1/2020		1		1,062
Rouse Co. LP (The)		6.75%		11/9/2015		3		3,120
Total								18,715

See Notes to Financial Statements.

15

Schedule of Investments (continued)

December 31, 2010

Investments	Interest Rate		Maturity Date		Principal Amount (000)		Value
Restaurants 0.10%
Dave & Buster’s, Inc.		11.00%		6/1/2018	$	2	$	2,205
Retail 0.29%
DineEquity, Inc.†		9.50%		10/30/2018		2		2,130
QVC, Inc.†		7.50%		10/1/2019		2		2,115
Wal-Mart Stores, Inc.		6.50%		8/15/2037		2		2,358
Total								6,603
Retail: Specialty 0.38%
Brown Shoe Co., Inc.		8.75%		5/1/2012		2		2,045
Rent-A-Center, Inc.†		6.625%		11/15/2020		2		2,000
Sally Holdings LLC/Sally Capital, Inc.		10.50%		11/15/2016		4		4,430
Total								8,475
Services 0.54%
Corrections Corp. of America		6.75%		1/31/2014		5		5,106
Iron Mountain, Inc.		6.625%		1/1/2016		5		5,044
Iron Mountain, Inc.		7.75%		1/15/2015		2		2,010
Total								12,160
Steel 0.70%
Allegheny Technologies, Inc.		9.375%		6/1/2019		10		11,700
Valmont Industries, Inc.		6.625%		4/20/2020		4		4,168
Total								15,868
Storage Facilities 0.09%
Niska Gas Storage US LLC/Niska Gas Storage Canada ULC†		8.875%		3/15/2018		2		2,150
Telecommunications 0.76%
Atlantic Broadband Finance LLC		9.375%		1/15/2014		5		5,100
CC Holdings GS V LLC/Crown Castle GS III Corp.†		7.75%		5/1/2017		2		2,195
DigitalGlobe, Inc.		10.50%		5/1/2014		4		4,585
GCI, Inc.		7.25%		2/15/2014		3		3,052
GeoEye, Inc.		9.625%		10/1/2015		2		2,270
Total								17,202
Telecommunications Equipment 0.19%
Cisco Systems, Inc.		4.95%		2/15/2019		4		4,366

See Notes to Financial Statements.

16

Schedule of Investments (continued)

December 31, 2010

Investments	Interest Rate			Maturity Date		Principal Amount (000)		Value
Tobacco 0.19%
Altria Group, Inc.		9.95%			11/10/2038	$	3	$	4,240
Transportation: Miscellaneous 0.60%
Asciano Finance Ltd. (Australia)†(a)		4.625%			9/23/2020		2		1,858
CSX Corp.		6.75%			3/15/2011		5		5,057
Viterra, Inc. (Canada)†(a)		5.95%			8/1/2020		7		6,691
Total									13,606
Utilities: Electrical 0.33%
IPALCO Enterprises, Inc.†		7.25%			4/1/2016		4		4,290
Otter Tail Corp.		9.00%			12/15/2016		3		3,262
Total									7,552
Total Corporate Bonds (cost $855,454)									862,507
FOREIGN GOVERNMENT OBLIGATIONS(a) 0.20%
Panama 0.10%
Republic of Panama		6.70%			1/26/2036		2		2,240
Peru 0.10%
Republic of Peru		6.55%			3/14/2037		2		2,200
Total Foreign Government Obligations (cost $4,987)									4,440
GOVERNMENT SPONSORED ENTERPRISES COLLATERALIZED MORTGAGE OBLIGATIONS 2.95%
Federal Home Loan Mortgage Corp. K003 A5		5.085%			3/25/2019		10		10,592
Federal Home Loan Mortgage Corp. K004 A2		4.186%			8/25/2019		25		25,398
Federal Home Loan Mortgage Corp. K005 A2		4.317%			11/25/2019		15		15,339
Federal Home Loan Mortgage Corp. K008 A2		3.531%			6/25/2020		10		9,682
Federal National Mortgage Assoc. 2005-14 OP		4.50%			10/25/2028		5		5,549
Total Government Sponsored Enterprises Collateralized Mortgage Obligations (cost $67,910)									66,560
GOVERNMENT SPONSORED ENTERPRISES PASS-THROUGHS 18.87%
Federal Home Loan Mortgage Corp.(c)		4.00%			TBA		75		74,473
Federal Home Loan Mortgage Corp.		4.861%	#		5/1/2035		5		5,661
Federal Home Loan Mortgage Corp.		5.00%			10/1/2018 - 6/1/2025		50		52,768
Federal Home Loan Mortgage Corp.		5.095%	#		12/1/2035		8		7,986
Federal Home Loan Mortgage Corp.		5.542%	#		6/1/2036		5		5,021
Federal Home Loan Mortgage Corp.(c)		6.00%			TBA		80		86,663
Federal National Mortgage Assoc.		5.262%	#		10/1/2035		9		9,392

See Notes to Financial Statements.

17

Schedule of Investments (continued)

December 31, 2010

Investments	Interest Rate			Maturity Date		Principal Amount (000)		Value
GOVERNMENT SPONSORED ENTERPRISES PASS-THROUGHS (continued)
Federal National Mortgage Assoc.		5.50%			1/1/2035 - 1/1/2037	$	158	$	170,255
Federal National Mortgage Assoc.		5.646%	#		12/1/2036		5		4,866
Federal National Mortgage Assoc.		5.839%	#		10/1/2036		8		8,876
Total Government Sponsored Enterprises Pass-Throughs (cost $425,024)									425,961
MUNICIPAL BONDS 2.70%
Education 0.41%
OH St Univ Gen Rcpts Build America Bds Ser C		4.91%			6/1/2040		5		4,532
Univ of CA Rev Build America Bds Regents Univ		5.77%			5/15/2043		5		4,716
Total									9,248
Housing 0.23%
Indianapolis IN Loc Pub Impt Bd Bk Build America Bds Ser B2		6.116%			1/15/2040		5		5,199
Other Revenue 0.22%
Metro Govt of Nashville & Davidson Cnty TN Convtn Ctr Auth Build America Bds Ser B		6.731%			7/1/2043		5		4,929
Sales Tax 0.22%
New York City NY Transnl Fin Auth Build America Bds		5.767%			8/1/2036		5		5,057
Transportation 0.97%
Bay Area Toll Auth CA Build America Bds Ser S1		6.918%			4/1/2040		5		5,040
Bay Area Toll Auth CA Build America Bds Ser S3		6.907%			10/1/2050		2		2,007
Chicago IL O’Hare Intl Arpt Build America Bds Ser B		6.845%			1/1/2038		5		4,790
Los Angeles Cnty CA Metro Transn Auth Build America Bds		5.735%			6/1/2039		5		4,761
UT Transit Auth Sales Tax Rev Build America Bds Ser B		5.937%			6/15/2039		5		5,261
Total									21,859
Utilities 0.65%
Muni Elec Auth GA Build America Bds		7.055%			4/1/2057		5		4,598
New York City NY Muni Wtr Fin Auth Build America Bds		6.011%			6/15/2042		5		5,000
New York City NY Muni Wtr Fin Auth Build America Bds		6.282%			6/15/2042		5		4,981
Total									14,579
Total Municipal Bonds (cost $63,449)									60,871

See Notes to Financial Statements.

18

Schedule of Investments (continued)

December 31, 2010

Investments	Interest Rate			Maturity Date		Principal Amount (000)			Value
NON-AGENCY COMMERCIAL MORTGAGE-BACKED SECURITIES 10.38%
Banc of America Commercial Mortgage, Inc. 2002-2 A3		5.118%			7/11/2043	$	10		$	10,305
Banc of America Commercial Mortgage, Inc. 2003-1 A1		3.878%			9/11/2036		7			6,655
Banc of America Commercial Mortgage, Inc. 2005-2 A5		4.857%			7/10/2043		10			10,635
Banc of America Commercial Mortgage, Inc. 2005-5 A4		5.115%			10/10/2045		10			10,728
CS First Boston Mortgage Securities Corp. 2001-CK6 A3		6.387%			8/15/2036		8			8,671
CS First Boston Mortgage Securities Corp. 2002-CKS4 A2		5.183%			11/15/2036		10			10,431
CS First Boston Mortgage Securities Corp. 2005-C5 AM		5.10%			8/15/2038		10			10,224
GE Capital Commercial Mortgage Corp. 2002-3A A2		4.996%			12/10/2037		10			10,500
GE Capital Commercial Mortgage Corp. 2003-C2 A4		5.145%			7/10/2037		10			10,633
GE Capital Commercial Mortgage Corp. 2004-C3 A2		4.433%			7/10/2039		4			3,548
GS Mortgage Securities Corp. II 2005-GG4 AABA		4.68%			7/10/2039		8			8,654
GS Mortgage Securities Corp. II 2006-GG6 A2		5.506%			4/10/2038		9			8,880
JPMorgan Chase Commercial Mortgage Securities Corp. 2002-C1 A3		5.376%			7/12/2037		10			10,452
JPMorgan Chase Commercial Mortgage Securities Corp. 2002-C3 A2		4.994%			7/12/2035		10			10,572
JPMorgan Chase Commercial Mortgage Securities Corp. 2004-LN2 A1		4.475%			7/15/2041		6			5,898
JPMorgan Chase Commercial Mortgage Securities Corp. 2005-LDP2 A2		4.575%			7/15/2042		2			2,227
JPMorgan Chase Commercial Mortgage Securities Corp. 2005-LDP3 A4A		4.936%			8/15/2042		10			10,609
LB-UBS Commercial Mortgage Trust 2001-C7 A5		6.133%			12/15/2030		10			10,295
LB-UBS Commercial Mortgage Trust 2005-C1 A2		4.31%			2/15/2030		2			1,730
LB-UBS Commercial Mortgage Trust 2005-C3 A2		4.553%			7/15/2030		5			4,526
LB-UBS Commercial Mortgage Trust 2005-C5 A4		4.954%			9/15/2030		10			10,678
Merrill Lynch Mortgage Trust 2005-MCP1 A2		4.556%			6/12/2043		3			2,779
Morgan Stanley Dean Witter Capital I 2003-TOP9 A1		3.98%			11/13/2036		–	(b)		509
NCUA Guaranteed Notes 2010-C1 A-PT		2.65%			10/29/2020		20			19,406
NCUA Guaranteed Notes 2010-C1 A2		2.90%			10/29/2020		10			9,738
Wachovia Bank Commercial Mortgage Trust 2003-C5 A1		2.986%			6/15/2035		3			3,472
Wachovia Bank Commercial Mortgage Trust 2003-C6 A4		5.125%			8/15/2035		10			10,692
Wachovia Bank Commercial Mortgage Trust 2005-C21 A4		5.204%	#		10/15/2044		10			10,819
Total Non-Agency Commercial Mortgage-Backed Securities (cost $234,699)										234,266

See Notes to Financial Statements.

19

Schedule of Investments (concluded)

December 31, 2010

Investments	Interest Rate		Maturity Date		Principal Amount (000)		Value
PASS-THROUGH AGENCIES 3.67%
Government National Mortgage Assoc.(c)		4.00%		TBA	$	10	$	10,070
Government National Mortgage Assoc.(c)		4.50%		TBA		70		72,691
Total Pass-Through Agencies (cost $81,307)								82,761
U.S. TREASURY OBLIGATIONS 24.23%
U.S. Treasury Bond		3.875%		8/15/2040		21		19,346
U.S. Treasury Note		1.375%		1/15/2013		97		98,493
U.S. Treasury Note		2.125%		12/31/2015		53		53,290
U.S. Treasury Note		2.375%		10/31/2014		87		90,065
U.S. Treasury Note		2.625%		11/15/2020		43		40,568
U.S. Treasury Note		2.75%		12/31/2017		10		10,023
U.S. Treasury Note		3.00%		2/28/2017		220		226,909
U.S. Treasury Strips		Zero Coupon		11/15/2027		17		8,173
Total U.S. Treasury Obligations (cost $555,090)								546,867
Total Long-Term Investments (cost $2,399,680)								2,396,145
SHORT-TERM INVESTMENT 8.12%
Repurchase Agreement
Repurchase Agreement dated 12/31/2010, 0.04% due 1/3/2011 with Fixed Income Clearing Corp. collateralized by $185,000 of U.S. Treasury Note at 2.50% due 4/30/2015; value: $191,938 proceeds: $183,284 (cost $183,284)						183		183,284
Total Investments in Securities 114.30% (cost $2,582,964)								2,579,429
Liabilities in Excess of Other Assets (14.30%)								(322,787	)
Net Assets 100.00%							$	2,256,642

PIK	Payment-in-kind.
#	Variable rate security. The interest rate represents the rate in effect at December 31, 2010.
†	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)	Amount is less than $1,000.
(c)	To-be-announced (“TBA”). Security purchased on a forward commitment basis with an approximate principal and maturity date. Actual principal and maturity will be determined upon settlement when the specific mortgage pools are assigned.

See Notes to Financial Statements.

20

Statement of Assets and Liabilities

December 31, 2010

ASSETS:
Investments in securities, at value (cost $2,582,964)	$	2,579,429
Receivables:
Investment securities sold		85,891
Interest and dividends		22,453
From advisor (See Note 3)		6,042
Capital shares sold		4,242
Prepaid expenses		3,131
Total assets		2,701,188
LIABILITIES:
Payables:
Investment securities purchased		396,230
Offering costs		4,518
Management fee		782
Fund administration		69
Directors’ fees		29
Capital shares reacquired		1
Accrued expenses and other liabilities		42,917
Total liabilities		444,546
NET ASSETS	$	2,256,642
COMPOSITION OF NET ASSETS:
Paid-in capital	$	2,269,888
Undistributed net investment income		121
Accumulated net realized loss on investments		(9,832	)
Net unrealized depreciation on investments		(3,535	)
Net Assets	$	2,256,642
Outstanding shares (50 million shares of common stock authorized, $.001 par value)		147,659
Net asset value, offering and redemption price per share (Net assets divided by outstanding shares)		$15.28

See Notes to Financial Statements.

21

Statement of Operations

For the Period Ended December 31, 2010*

Investment income:
Interest	$	33,838
Total investment income		33,838
Expenses:
Management fee		4,501
Shareholder servicing		4,063
Professional		40,782
Offering costs		7,430
Reports to shareholders		6,000
Custody		5,283
Fund administration		400
Directors’ fees		43
Other		2,317
Gross expenses		70,819
Expense reductions (See Note 7)		(2	)
Management fee waived and expenses reimbursed (See Note 3)		(64,415	)
Net expenses		6,402
Net investment income		27,436
Net realized and unrealized gain (loss):
Net realized gain on investments		32,862
Net change in unrealized depreciation on investments		(3,535	)
Net realized and unrealized gain		29,327
Net Increase in Net Assets Resulting From Operations	$	56,763

* For the period April 16, 2010 (commencement of operations) to December 31, 2010.

See Notes to Financial Statements.

22

Statement of Changes in Net Assets

INCREASE IN NET ASSETS	For the Period Ended December 31, 2010*
Operations:
Net investment income	$	27,436
Net realized gain on investments		32,862
Net change in unrealized depreciation on investments		(3,535	)
Net increase in net assets resulting from operations		56,763
Distributions to shareholders from:
Net investment income		(35,162	)
Net realized gain		(34,847	)
Total distributions to shareholders		(70,009	)
Capital share transactions (See Note 10):
Proceeds from sales of shares		2,201,014
Reinvestment of distributions		70,006
Cost of shares reacquired		(1,132	)
Net increase in net assets resulting from capital share transactions		2,269,888
Net increase in net assets		2,256,642
NET ASSETS:
Beginning of period	$	–
End of period	$	2,256,642
Undistributed net investment income	$	121

* For the period April 16, 2010 (commencement of operations) to December 31, 2010.

See Notes to Financial Statements.

23

Financial Highlights

	4/16/2010(a) to 12/31/2010
Per Share Operating Performance
Net asset value, beginning of period		$15.00
Investment operations:
Net investment income(b)		.01
Net realized and unrealized gain		.06
Total from investment operations		.07
Net asset value, on SEC Effective Date, 5/1/2010		$15.07
Investment operations:
Net investment income(b)		.29
Net realized and unrealized gain		.44
Total from investment operations		.73
Distributions to shareholders from:
Net investment income		(.26	)
Net realized gain		(.26	)
Total distributions		(.52	)
Net asset value, end of period		$15.28
Total Return(c)		5.39	%(d)(e)
Total Return(c)		4.90	%(d)(f)
Ratios to Average Net Assets:
Expenses, excluding expense reductions and including management fee waived and expenses reimbursed		.64	%(g)
Expenses, including expense reductions, management fee waived and expenses reimbursed		.64	%(g)
Expenses, excluding expense reductions, management fee waived and expenses reimbursed		6.98	%(g)
Net investment income		2.71	%(g)
Supplemental Data:
Net assets, end of period (000)		$2,257
Portfolio turnover rate		440.61	%

^(a) Commencement of operations was 4/16/2010, SEC effective date and date shares first became available to the public was 5/1/2010.

^(b) Calculated using average shares outstanding during the period.

^(c) Total return does not consider the effects of sales charges or other expenses imposed by an insurance company and assumes the reinvestment of all distributions.

^(d) Not annualized.

^(e) Total return for the period 4/16/10 through 12/31/10.

^(f) Total return for the period 5/1/10 through 12/31/10.

^(g) Annualized.

See Notes to Financial Statements.

24

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 and was incorporated under Maryland law in 1989. The Company consists of twelve separate portfolios (the “Funds”). This report covers Total Return Portfolio (the “Fund”). Total Return Portfolio commenced operations on April 16, 2010. The Fund became effective with the SEC and first made shares available to the public on May 1, 2010. The Fund is diversified as defined in the Act.

The investment objective of the Fund is to seek income and capital appreciation to produce a high total return. The Fund has 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 the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

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 fair value.

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

(c) Investment Income–Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis as earned. Discounts are accreted and premiums are amortized using the effective interest method and are included in Interest income in the Statement of Operations.

25

Notes to Financial Statements (continued)

(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 period ended December 31, 2010. 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 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 gain on investments 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, the Fund may incur a loss upon disposition of the securities.

(h) When-Issued, 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 the 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 (“NAV”).

26

Notes to Financial Statements (continued)

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.

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

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

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

• Level 3 – significant unobservable inputs (including 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, 2010 in valuing the Fund’s investments carried at value:

Investment Type*	Level 1		Level 2		Level 3		Total
Asset-Backed Securities	$	–	$	111,912	$	–	$	111,912
Corporate Bonds		–		862,507		–		862,507
Foreign Government Obligations		–		4,440		–		4,440
Government Sponsored Enterprises Collateralized Mortgage Obligations		–		66,560		–		66,560
Government Sponsored Enterprises Pass-Throughs		–		425,961		–		425,961
Municipal Bonds		–		60,871		–		60,871
Non-Agency Commercial Mortgage-Backed Securities		–		234,266		–		234,266
Pass-Through Agencies		–		82,761		–		82,761
U.S. Treasury Obligations		–		546,867		–		546,867
Repurchase Agreement		–		183,284		–		183,284
Total	$	–	$	2,579,429	$	–	$	2,579,429

* See Schedule of Investments for values in each industry.

27

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 rate:

First $1 billion	45%
Next $1 billion	40%
Over $2 billion	35%

For the fiscal period ended December 31, 2010, the effective management fee, net of waivers and expenses reimbursed, was at an annualized rate of .00% 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 April 16, 2010 to April 30, 2010, Lord Abbett voluntarily agreed to waive all or a portion of its management fee and, if necessary, reimburse the Fund’s other expenses to the extent necessary so that the total net annual operating expenses do not exceed an annualized rate of .64%.

For the period May 1, 2010 through April 30, 2011, Lord Abbett has contractually agreed to continue such waivers under the same terms. This agreement may be terminated only upon the approval of the Fund’s Board of Directors.

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 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 period ended December 31, 2010, the Fund incurred expenses of $2,733 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 semi-annually. Taxable net realized gains from investment transactions, reduced by allowable capital loss carryforwards, if any, are declared and distributed to shareholders at least annually. The capital loss carryforward amount, if any, is available to offset future net capital gains. Dividends and distributions to shareholders are recorded on the ex-dividend date. The amounts of dividends and distributions from net investment income and net realized capital gains are determined in accordance with federal income tax regulations, which may differ from accounting principles generally accepted in the United States of America. These book/tax differences are either considered temporary or

28

Notes to Financial Statements (continued)

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 period ended December 31, 2010 was as follows:

	Period Ended 12/31/2010*
Distributions paid from:
Ordinary income	$	70,009
Total distributions paid	$	70,009

* For the period April 16, 2010 (commencement of operations) to December 31, 2010.

As of December 31, 2010, the components of accumulated losses on a tax-basis were as follows:

Undistributed ordinary income – net	$	150
Total undistributed earnings	$	150
Temporary differences		(3,211	)
Unrealized losses – net		(10,185	)
Total accumulated losses – net	$	(13,246	)

Certain losses incurred after October 31 (“Post-October losses”) within the taxable period 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 $3,182 during fiscal 2010.

As of December 31, 2010, the aggregate unrealized security gains and losses based on cost for U.S. federal income tax purposes were as follows:

Tax cost	$	2,589,614
Gross unrealized gain		18,473
Gross unrealized loss		(28,658	)
Net unrealized security loss	$	(10,185	)

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

Permanent items identified during the fiscal period December 31, 2010 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
	$7,847	$	(7,847	)

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

On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the “Modernization Act”) was signed by the President. The Modernization Act includes numerous provisions that generally become effective for taxable years beginning after the date of enactment. Management is currently assessing the impact of the Modernization Act as it relates to the Fund.

29

Notes to Financial Statements (continued)

5.    PORTFOLIO SECURITIES TRANSACTIONS

Purchases and sales of investment securities (excluding short-term investments) for the fiscal period ended December 31, 2010 were as follows:

U.S. Government Purchases*	Non-U.S. Government Purchases		U.S. Government Sales*		Non-U.S. Government Sales
$7,222,168	$	2,110,389	$	6,116,930	$	692,694

* 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.

7.    EXPENSE REDUCTIONS

The Company has entered into an arrangement with its transfer agent and custodian, whereby credits realized as a result of uninvested cash balances are used to reduce a portion of 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 fixed income securities. The value of an investment will change as interest rates fluctuate in response to market movements. When interest rates rise, the prices of fixed income securities are likely to decline; when rates fall, such prices tend to rise.

The Fund may invest a significant portion of its assets in asset backed securities and mortgage related securities, including those of such government sponsored enterprises as Federal Home Loan Mortgage Corporation and Federal National Mortgage Association. Such securities may be particularly sensitive to changes in economic conditions, including delinquencies and/or defaults, and changes in prevailing interest rates. These changes can affect the value, income and/or liquidity of such positions. When interest rates are declining, the value of these securities with prepayment features may not increase as much as other fixed income securities. Early principal repayment may deprive a Fund of income payments above current market rates. The prepayment rate also will

30

Notes to Financial Statements (concluded)

affect the price and volatility of these securities. In addition, securities of government sponsored enterprises are guaranteed with respect to the timely payment of interest and principal by the particular enterprises involved, not by the U.S. Government.

The lower-rated or high yield bonds in which the Fund may invest are subject to greater price fluctuations, as well as additional risks.

The Fund is subject to the risks associated with derivatives, which may be different from and greater than the risks associated with directly investing in securities. Derivatives may be subject to risks such as liquidity risk, leveraging risk, interest rate risk, market risk, and credit risk. Illiquid securities may lower the Fund’s returns since the Fund may be unable to sell these securities at their desired time or price. Derivatives also may involve the risk of mispricing or improper valuation and the risk that changes in the value of the derivative may not correlate perfectly with the value of the underlying asset, rate or index. Whether the Fund’s use of derivatives is successful will depend on, among other things, if the Fund’s ability to correctly forecast market movements, changes in foreign exchange and interest rates, and other factors. If the Fund incorrectly forecasts these and other factors, its performance could suffer.

The Fund’s investment exposure to foreign companies presents increased market, liquidity, currency, political, information and other risks. The cost to a Fund’s use of forward foreign currency exchange contracts varies with factors such as the currencies involved, the length of the contract period and the market conditions prevailing.

The Fund may invest in floating rate or adjustable rate senior loans, which are subject to increased credit and liquidity risks. Senior loans are business loans made to borrowers that may be U.S. or foreign corporations, partnerships or other business entities. The senior loans in which the Fund invests may consist primarily of senior loans that are rated below investment grade or, if unrated, deemed by Lord Abbett to be equivalent of below investment grade securities. Below investment grade senior loans, as in the case of high yield debt securities, or junk bonds, are usually more credit sensitive than interest rate sensitive, although the value of these instruments may be impacted by broader interest rate swings in the overall fixed income market.

These factors can affect the Fund’s performance.

10.    SUMMARY OF CAPITAL TRANSACTIONS

Transactions in shares of capital stock were as follows:

	Period Ended December 31,  2010†
Shares sold		143,131
Reinvestment of distributions		4,600
Shares reacquired		(72	)
Increase		147,659

^† For the period April 16, 2010 (commencement of operations) to December 31, 2010.

31

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 of Total Return Portfolio, one of the portfolios constituting the Lord Abbett Series Fund, Inc. (the “Company”), including the schedule of investments, as of December 31, 2010, and the related statement of operations, changes in net assets, and the financial highlights for the period from April 16, 2010 (commencement of operations) to December 31, 2010. 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 audit.

We conducted our audit 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 audit 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, 2010, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audit provides 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 Total Return Portfolio of the Lord Abbett Series Fund, Inc. as of December 31, 2010, the results of its operations, the changes in its net assets, and financial highlights for period from April 16, 2010 (commencement of operations) through December 31, 2010, in conformity with accounting principles generally accepted in the United States of America.

DELOITTE & TOUCHE LLP

New York, New York

February 15, 2011

32

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 the investment adviser provides, and annually considers whether to renew the contract with the adviser. Generally, each Director holds office until his/her successor is elected and qualified or until his/her earlier resignation or removal, as provided in the Company’s organizational documents.

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

Interested Directors

The following Directors are associated with Lord Abbett and are “interested persons” of the Company as defined in the Act. Mr. Dow and Ms. Foster are officers and directors or trustees of each of the 13 Lord Abbett-sponsored funds, which consist of 53 portfolios or series.

Name, Address and Year of Birth	Current Position and Length of Service with the Company	Principal Occupation and Other Directorships During Past Five Years
Robert S. Dow Lord, Abbett & Co. LLC 90 Hudson Street Jersey City, NJ 07302 (1945)	Director since 1995 and Chairman since 1996	Principal Occupation: Senior Partner of Lord Abbett (since 2007) and was formerly Managing Partner (1996 - 2007) and Chief Investment Officer (1995 - 2007), joined Lord Abbett in 1972. Other Directorships: None.
Daria L. Foster Lord, Abbett & Co. LLC 90 Hudson Street Jersey City, NJ 07302 (1954)	Director and President since 2006	Principal Occupation: Managing Partner of Lord Abbett (since 2007), and was formerly Director of Marketing and Client Service, joined Lord Abbett in 1990. Other Directorships: None.

Independent Directors

The following Independent Directors also are directors or trustees of each of the 13 Lord Abbett-sponsored funds, which consist of 53 portfolios or series.

Name, Address and Year of Birth	Current Position and Length of Service with the Company	Principal Occupation and Other Directorships During Past Five Years
E. Thayer Bigelow Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1941)	Director since 1994	Principal Occupation: Managing General Partner, Bigelow Media, LLC (since 2000); Senior Adviser, Time Warner Inc. (1998 - 2000). Other Directorships: Currently serves as director of Crane Co. (since 1984) and Huttig Building Products Inc. (since 1998). Previously served as a director of R.H. Donnelley Inc. (2009 - 2010) and Adelphia Communications Inc. (2003 - 2007).

33

Basic Information About Management (continued)

Name, Address and Year of Birth	Current Position and Length of Service with the Company	Principal Occupation and Other Directorships During Past Five Years
Robert B. Calhoun, Jr. Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1942)	Director since 1998	Principal Occupation: Senior Advisor of Monitor Clipper Partners, a private equity investment fund (since 1997); President of Clipper Asset Management Corp. (1991 - 2009). Other Directorships: Previously served as a director of Avondale, Inc. (1991 - 2005) and Interstate Bakeries Corp. (1991 - 2008).
Evelyn E. Guernsey Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1955)	Director since 2011	Principal Occupation: CEO, Americas of J.P. Morgan Asset Management (2004 - 2010). Other Directorships: None.
Julie A. Hill Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1946)	Director since 2004	Principal Occupation: Owner and CEO of The Hill Company, a business consulting firm (since 1998). Other Directorships: Currently serves as director of WellPoint, Inc., a health benefits company (since 1994). Previously served as a director of Resources Connection, Inc., a consulting firm (2004 - 2007).
Franklin W. Hobbs Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1947)	Director since 2001	Principal Occupation: Advisor of One Equity Partners, a private equity firm (since 2004). Other Directorships: Currently serves as a director and Chairman of the Board of Ally Financial 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	Principal Occupation: Chairman of Spencer Stuart (U.S.), an executive search consulting firm (since 1996). Other Directorships: Currently serves as director of Ace, Ltd. (since 1997). Previously served as a director of Hewitt Associates, Inc. (2004 - 2010).
James L.L. Tullis Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1947)	Director since 2006	Principal Occupation: CEO of Tullis-Dickerson and Co. Inc., a venture capital management firm (since 1990). Other Directorships: Currently serves as director of Crane Co. (since 1998). Previously served as a director of Viacell Inc. (2003 - 2007).

34

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 also may be officers of the other Lord Abbett-sponsored funds and maintain offices at 90 Hudson Street, Jersey City, NJ 07302. Unless otherwise indicated, the position(s) and title(s) listed under the “Principal Occupation” column indicate each officer’s position(s) and title(s) with Lord Abbett.

Name and Year of Birth	Current Position with the 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 of Lord Abbett (since 2007), and was formerly Managing Partner (1996 - 2007) and Chief Investment Officer (1995 - 2007), joined Lord Abbett in 1972.
Daria L. Foster (1954)	President	Elected in 2006	Managing Partner of Lord Abbett (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.
Robert A. Lee (1969)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 1997.
Vincent J. McBride (1964)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 2003.
Andrew H. O’Brien (1973)	Executive Vice President	Elected in 2010	Partner and Portfolio Manager, joined Lord Abbett in 1998.
F. Thomas O’Halloran, III (1955)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 2001.

35

Basic Information About Management (continued)

Name and Year of Birth	Current Position with the Company	Length of Service of Current Position	Principal Occupation During Past Five Years
Harold E. Sharon (1960)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 2003.
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.
A. Edward Allinson (1961)	Vice President	Elected in 2011	Portfolio Manager, joined Lord Abbett in 2005.
Sean J. Aurigemma (1969)	Vice President	Elected in 2010	Portfolio Manager, joined Lord Abbett in 2007 and was formerly a Managing Director and Portfolio Manager at Morgan Stanley (1999 - 2007).
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.
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	Partner and Director, joined Lord Abbett in 2001.

36

Basic Information About Management (continued)

Name and Year of Birth	Current Position with the Company	Length of Service of Current Position	Principal Occupation During Past Five Years
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).
Thomas B. Maher (1967)	Vice President	Elected in 2010	Partner and Portfolio Manager, joined Lord Abbett in 2003.
Justin C. Maurer (1969)	Vice President	Elected in 2010	Partner and Portfolio Manager, joined Lord Abbett in 2001.
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	Partner and Senior Deputy General Counsel, joined Lord Abbett in 2007 and was formerly an Executive Vice President and the General Counsel at Cohen & Steers Capital Management, Inc. (1999 - 2007).
Francis T. Timons (1969)	Vice President	Elected in 2010	Portfolio Manager, joined Lord Abbett in 2007 and was formerly a Research Analyst at Robert W. Baird & Co. (2004 - 2007).

37

Basic Information About Management (concluded)

Name and Year of Birth	Current Position with the Company	Length of Service of Current Position	Principal Occupation During Past Five Years
Arthur K. Weise (1970)	Vice President	Elected in 2010	Portfolio Manager, joined Lord Abbett in 2007 and was formerly a Managing Director, Portfolio Manager and Analyst at Bank of New York Institutional Asset Management (2005 - 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.

38

Approval of Advisory Contract

At meetings held on March 3, 2010, 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 proposed management agreement between the Fund and Lord Abbett. 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. Additionally, the Board took into consideration its familiarity with Lord Abbett gained through its previous meetings and discussions.

The materials received by the Board included, but were not limited to: (1) information provided by Lipper Inc. regarding the effective management fee rates and expense ratios for one or more groups of funds with similar objectives and of similar size (the “peer expense group”); and (2) information regarding the personnel and other resources devoted by Lord Abbett to managing the Fund.

Investment Management Services Generally. The Board considered the investment management services to be provided by Lord Abbett to the Fund, including investment research, portfolio management, and trading, and Lord Abbett’s commitment to compliance with all relevant legal requirements. The Board also observed that Lord Abbett was 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 to be 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. Because the Fund had not yet begun operations, the Board was not able to review the Fund’s investment performance and compliance.

Lord Abbett’s Personnel and Methods. The Board considered the qualifications of the personnel who would be providing investment management services to the Fund, in light of its investment objective and discipline. The Board noted that the same personnel provided management services to Lord Abbett Total Return Fund. 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 expected expense levels of the Fund and the expense levels of the peer expense group. It also considered the amount and nature of the fees to be paid by shareholders. The Board noted that it and Lord Abbett had agreed to cap expenses of the Fund for the period from May 1, 2010 through April 30, 2011 at 0.64% of average daily net assets.

39

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

Economies of Scale. The Board considered whether there might be economies of scale in managing the Fund and whether the Fund would benefit appropriately from any such economies of scale. The Board concluded that the proposed 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 to be paid by the Fund and the Fund’s shareholders to Lord Abbett and Distributor for services other than investment advisory services. The Board also considered the revenues and profitability of Lord Abbett’s investment advisory business apart from its mutual fund business, and the intangible benefits enjoyed by Lord Abbett by virtue of its relationship with the Fund. The Board observed that Distributor receives 12b-1 fees from certain of the Lord Abbett Funds as to shares held in accounts for which there is no other broker of record, may retain a portion of the 12b-1 fees 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.

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

40

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.

41

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.

Total Return Portfolio

SFTR-PORT-2-1210

(02/11)

2010

LORD ABBETT

ANNUAL

REPORT    

Lord Abbett

Series Fund—Value Opportunities Portfolio

For the fiscal period ended December 31, 2010

Lord Abbett Series Fund — Value Opportunities Portfolio*

Annual Report

For the fiscal period ended December 31, 2010

*    The Fund commenced operations on April 23, 2010, and investment performance began on May 1, 2010.

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 performance of the Lord Abbett Series Fund – Value Opportunities Portfolio for the period ended December 31, 2010. 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 managers.

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

For the eight-month period ended December 31, 2010, the Fund returned 10.67%, reflecting performance at the net asset value (NAV) of Class VC shares, with all distributions reinvested, compared to its benchmark, the Russell 2500^® Value Index,¹ which returned 7.66% over the same period.

The period April 30, 2010 through December 31, 2010 was very strong for small and mid cap stocks. The Russell 2500^® Index² returned 10.77% for the period, beating the 10.30% return of the Russell 2000^® Index³ and the 7.84% return of the Russell 1000^® Index⁴. Only mid cap stocks had stronger performance, with the Russell Midcap^® Index⁵ returning 11.28%. Growth significantly outperformed value within small and mid cap stocks, with the Russell 2500^® Growth Index⁶ returning 14.42% and the Russell 2500^® Value Index returning 7.66%.

Stock selection within the industrials and consumer discretionary sectors

1

contributed to the Fund’s performance. Industrials holding WABCO Holdings Inc., a manufacturer of automobile and truck parts, announced strong earnings for the first three quarters of 2010 and experienced solid growth within its European business. Another industrials holding, Chicago Bridge & Co., N.V., a construction services company, benefited from increased backlog due in part to newly awarded business. In addition, the company’s international markets have seen an increase in potential activity. Consumer discretionary holding Gentex Corp., a manufacturer of automobile, truck, and aircraft parts, announced earnings that were in line with estimates for the second and third quarters of 2010. The company’s stock rose following the National Highway Traffic Safety Administration’s (NHTSA) proposal for implementation of enhanced rear visibility systems in most vehicles in the United States because Gentex manufactures rear camera display mirrors that would be a possible option for installation in cars in response to this proposal.

Stock Selection within the health care and materials sectors detracted from the Fund’s performance. Health care holding Integra Lifesciences, a medical device company, announced weak gross margins for the first quarter of 2010, which took a toll on the stock price; however, the company did meet expectations for the second quarter of 2010. Health care holding Teleflex Inc., a provider of medical technology products, took steps during the year to transition into a pure medical company by selling its Rigging Services and Actuation businesses. The company announced lighter-than-expected third quarter medical equipment sales and high operating expenses. Materials holding Metals USA Holdings Corp., a fabricated products provider, was negatively affected by a weak pricing and demand environment.

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 Russell 2500^® Value Index measures the performance of those Russell 2500 companies with lower price-to-book ratios and lower forecasted growth values.

²  The Russell 2500^® Index measures the performance of the 2,500 smallest companies in the Russell 3000^® Index, which represent approximately 20% of the total market capitalization of the Russell 3000 Index.

³  The Russell 2000^® Index measures the performance of the 2,000 smallest companies in the Russell 3000^® Index, which represent approximately 10% of the total market capitalization of the Russell 3000^® Index.

⁴  The Russell 1000^® Index measures the performance of the 1,000 largest companies in the Russell 3000^® Index, which represent approximately 90% of the total market capitalization of the Russell 3000 Index.

⁵  The Russell Midcap^® Index measures the performance of the 800 smallest companies in the Russell 1000 index, which represent approximately 31% of the total market capitalization of the Russell 1000 Index.

⁶  The Russell 2500^® Growth Index measures the performance of the 2,500 companies with higher price-to-book ratios and higher forecasted growth value.

Unless otherwise specified, the index reflects 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 in the following pages reflect past performance and are no guarantee of future results. Current performance may be higher or lower than the performance quoted. The investment return and principal value of an investment in 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 shown, 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 above are as of December 31, 2010; 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 2500^® Value Index and the Russell 2500^® 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 the period, expenses of the Fund were waived or reimbursed by Lord Abbett; without such waiver or reimbursement of expenses, the Fund’s returns would have been lower. Past performance is no guarantee of future results.

Total Return for the

Period Ended December 31, 2010

	Life of Class
Class VC2		10.67%	*

¹    Performance for each unmanaged index does not reflect any fees or expenses. The performance of each index is not necessarily representative of the Fund’s performance. Performance for each index began on April 30, 2010.

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

*    Because Class VC shares have existed for less than one year, average annual returns are not provided.

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, 2010 through December 31, 2010).

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 7/1/10 – 12/31/10” 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†
	7/1/10		12/31/10		7/1/10 - 12/31/10
Class VC
Actual	$	1,000.00	$	1,292.20	$	6.36
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.67	$	5.60

^† Net expenses are equal to the Fund's annualized expense ratio of 1.10%, 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, 2010

Sector*	%**
Consumer Discretionary		13.86%
Consumer Staples		1.76%
Energy		7.73%
Financials		19.13%
Health Care		7.36%
Industrials		22.38%
Information Technology		14.26%
Materials		9.33%
Utilities		4.19%
Total		100.00%

* A sector may comprise several industries.

** Represents percent of total investments.

6

Schedule of Investments

December 31, 2010

Investments	Shares		Value
COMMON STOCKS 108.64%
Aerospace & Defense 2.09%
Hexcel Corp.*		129	$	2,334
Spirit AeroSystems Holdings, Inc. Class A*		105		2,185
Total				4,519
Air Freight & Logistics 1.76%
Atlas Air Worldwide Holdings, Inc.*		25		1,396
C.H. Robinson Worldwide, Inc.		30		2,406
Total				3,802
Auto Components 1.42%
Gentex Corp.		104		3,074
Automobiles 0.69%
Harley-Davidson, Inc.		43		1,491
Building Products 1.20%
Crane Co.		63		2,587
Capital Markets 2.64%
Lazard Ltd. Class A		113		4,462
LPL Investment Holdings, Inc.*		34		1,237
Total				5,699
Chemicals 4.63%
Albemarle Corp.		81		4,518
Eastman Chemical Co.		27		2,270
Olin Corp.		157		3,222
Total				10,010
Commercial Banks 10.09%
Comerica, Inc.		87		3,675
Commerce Bancshares, Inc.		74		2,954
Cullen/Frost Bankers, Inc.		35		2,139
East West Bancorp, Inc.		82		1,603
Fifth Third Bancorp		211		3,097
First Financial Bancorp		117		2,162
First Horizon National Corp.*		149		1,755
Hancock Holding Co.		35		1,220

Investments	Shares		Value
Huntington Bancshares, Inc.		191	$	1,312
KeyCorp		213		1,885
Total				21,802
Commercial Services & Supplies 2.34%
Tetra Tech, Inc.*		95		2,381
Waste Connections, Inc.		97		2,670
Total				5,051
Computers & Peripherals 0.74%
Diebold, Inc.		50		1,602
Construction & Engineering 3.82%
Chicago Bridge & Iron Co. NV (Netherlands)*(a)		111		3,652
EMCOR Group, Inc.*		83		2,405
Jacobs Engineering Group, Inc.*		48		2,201
Total				8,258
Diversified Financial Services 1.68%
CIT Group, Inc.*		77		3,627
Electric: Utilities 1.14%
Cleco Corp.		80		2,461
Electrical Equipment 3.33%
AMETEK, Inc.		48		1,864
EnerSys*		118		3,790
Roper Industries, Inc.		20		1,529
Total				7,183
Electronic Equipment, Instruments & Components 2.33%
Amphenol Corp. Class A		41		2,164
Plexus Corp.*		93		2,877
Total				5,041
Energy Equipment & Services 5.33%
Bristow Group, Inc.*		48		2,273
Key Energy Services, Inc.*		217		2,817
Oceaneering International, Inc.*		18		1,325

See Notes to Financial Statements.

7

Schedule of Investments (continued)

December 31, 2010

Investments	Shares		Value
Energy Equipment & Services (continued)
Superior Energy Services, Inc.*		85	$	2,974
Weatherford International Ltd. (Switzerland)*(a)		93		2,120
Total				11,509
Food Products 1.91%
Bunge Ltd.		43		2,817
Snyders-Lance, Inc.		56		1,313
Total				4,130
Gas Utilities 2.57%
EQT Corp.		44		1,973
UGI Corp.		113		3,569
Total				5,542
Health Care Equipment & Supplies 0.83%
Kinetic Concepts, Inc.*		43		1,801
Health Care Providers & Services 2.75%
Coventry Health Care, Inc.*		101		2,666
McKesson Corp.		23		1,619
Universal Health Services, Inc. Class B		38		1,650
Total				5,935
Hotels, Restaurants & Leisure 2.97%
Bravo Brio Restaurant Group, Inc.*		68		1,304
Darden Restaurants, Inc.		48		2,229
Hyatt Hotels Corp. Class A*		32		1,464
Texas Roadhouse, Inc.*		82		1,408
Total				6,405
Household Durables 2.27%
Fortune Brands, Inc.		51		3,073
Newell Rubbermaid, Inc.		101		1,836
Total				4,909
Information Technology Services 6.74%
Alliance Data Systems Corp.*		47		3,338
Amdocs Ltd. (Guernsey)*(a)		92		2,527

Investments	Shares		Value
Fiserv, Inc.*		55	$	3,221
FleetCor Technologies, Inc.*		18		557
Global Payments, Inc.		33		1,525
Sapient Corp.		281		3,400
Total				14,568
Insurance 4.16%
Brown & Brown, Inc.		123		2,945
HCC Insurance Holdings, Inc.		95		2,749
PartnerRe Ltd.		41		3,294
Total				8,988
Life Sciences Tools & Services 1.75%
PerkinElmer, Inc.		146		3,770
Machinery 4.35%
EnPro Industries, Inc.*		56		2,327
RBC Bearings, Inc.*		44		1,720
Trinity Industries, Inc.		80		2,129
WABCO Holdings, Inc.*		53		3,229
Total				9,405
Marine 0.61%
Kirby Corp.*		30		1,321
Media 4.99%
DreamWorks Animation SKG, Inc. Class A*		29		855
Interpublic Group of Cos., Inc. (The)*		473		5,023
John Wiley & Sons, Inc. Class A		54		2,443
Meredith Corp.		71		2,460
Total				10,781
Metals & Mining 5.50%
Agnico-Eagle Mines Ltd. (Canada)(a)		37		2,838
Allegheny Technologies, Inc.		29		1,600
Carpenter Technology Corp.		43		1,730
IAMGOLD Corp. (Canada)(a)		126		2,243
Reliance Steel & Aluminum Co.		68		3,475
Total				11,886

See Notes to Financial Statements.

8

Schedule of Investments (concluded)

December 31, 2010

Investments	Shares		Value
Multi-Utilities 0.84%
Wisconsin Energy Corp.		31	$	1,825
Oil, Gas & Consumable Fuels 3.07%
Concho Resources, Inc.*		31		2,718
Petrohawk Energy Corp.*		81		1,478
Range Resources Corp.		54		2,429
Total				6,625
Pharmaceuticals 2.67%
Warner Chilcott plc Class A (Ireland)(a)		82		1,850
Watson Pharmaceuticals, Inc.*		76		3,925
Total				5,775
Professional Services 1.34%
Robert Half International, Inc.		35		1,071
TrueBlue, Inc.*		101		1,817
Total				2,888
Real Estate Investment Trusts 2.21%
DiamondRock Hospitality Co.*		140		1,680
Duke Realty Corp.		112		1,396
Host Hotels & Resorts, Inc.		95		1,698
Total				4,774
Road & Rail 3.48%
Genesee & Wyoming, Inc. Class A*		36		1,906
Heartland Express, Inc.		138		2,211
Kansas City Southern*		49		2,345
Knight Transportation, Inc.		55		1,045
Total				7,507
Semiconductors & Semiconductor Equipment 3.30%
Atheros Communications, Inc.*		56		2,012
Cypress Semiconductor Corp.*		108		2,007
Lam Research Corp.*		44		2,278
Silicon Laboratories, Inc.*		18		828
Total				7,125

Investments	Shares		Value
Software 2.38%
Autodesk, Inc.*		36	$	1,375
Nuance Communications, Inc.*		111		2,018
Rovi Corp.*		28		1,736
Total				5,129
Specialty Retail 1.14%
CarMax, Inc.*		27		861
Men’s Wearhouse, Inc. (The)		64		1,599
Total				2,460
Textiles, Apparel & Luxury Goods 1.58%
Phillips-Van Heusen Corp.		54		3,403
Total Investments in Common Stocks 108.64% (cost 210,747)				234,668
Liabilities in Excess of Cash and Other Assets (8.64)%				(18,671	)
Net Assets 100%				215,997

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

9

See Notes to Financial Statements.

Statement of Assets and Liabilities

December 31, 2010

ASSETS:
Investments in securities, at value (cost $210,747)	$	234,668
Cash		13,574
Receivables:
From advisor (See Note 3)		5,574
Investment securities sold		947
Interest and dividends		120
Prepaid expenses		2,876
Total assets		257,759
LIABILITIES:
Payables:
Offering costs		3,094
Investment securities purchased		2,213
Management fee		135
Fund administration		7
Directors’ fees		4
Accrued expenses and other liabilities		36,309
Total liabilities		41,762
NET ASSETS	$	215,997
COMPOSITION OF NET ASSETS:
Paid-in capital	$	200,522
Distributions in excess of net investment income		(4	)
Accumulated net realized loss on investments		(8,442	)
Net unrealized appreciation on investments		23,921
Net Assets	$	215,997
Outstanding shares (50 million shares of common stock authorized, $.001 par value)		13,411
Net asset value, offering and redemption price per share (Net assets divided by outstanding shares)		$16.11

See Notes to Financial Statements.

10

Statement of Operations

For the Period Ended December 31, 2010*

Investment income:
Dividends (net of foreign withholding taxes of $2)	$	1,916
Interest and other		709
Total investment income		2,625
Expenses:
Management fee		961
Shareholder servicing		10
Professional		36,074
Offering costs		6,253
Custody		6,007
Reports to shareholders		6,000
Fund administration		51
Directors’ fees		6
Other		2,291
Gross expenses		57,653
Management fee waived and expenses reimbursed (See Note 3)		(56,244	)
Net expenses		1,409
Net investment income		1,216
Net realized and unrealized gain (loss):
Net realized loss on investments		(8,462	)
Net change in unrealized appreciation on investments		23,921
Net realized and unrealized gain		15,459
Net Increase in Net Assets Resulting From Operations	$	16,675

* For the period April 23, 2010 (commencement of operations) to December 31, 2010.

See Notes to Financial Statements.

11

Statement of Changes in Net Assets

INCREASE IN NET ASSETS	For the Period Ended December 31, 2010*
Operations:
Net investment income	$	1,216
Net realized loss on investments		(8,462	)
Net change in unrealized appreciation on investments		23,921
Net increase in net assets resulting from operations		16,675
Distributions to shareholders from:
Net investment income		(1,227	)
Capital share transactions (See Note 10):
Proceeds from sales of shares		199,322
Reinvestment of distributions		1,227
Net increase in net assets resulting from capital share transactions		200,549
Net increase in net assets		215,997
NET ASSETS:
Beginning of period	$	–
End of period	$	215,997
Distributions in excess of net investment income	$	(4	)

* For the period April 23, 2010 (commencement of operations) to December 31, 2010.

See Notes to Financial Statements.

12

Financial Highlights

	4/23/2010(a) to 12/31/2010
Per Share Operating Performance
Net asset value, beginning of period		$15.00
Investment operations:
Net investment loss(b)		–	(c)
Net realized and unrealized loss		(.37	)
Total from investment operations		(.37	)
Net asset value, on SEC Effective Date, 5/1/2010		$14.63
Investment operations:
Net investment income(b)		.09
Net realized and unrealized gain		1.48
Total from investment operations		1.57
Distributions to shareholders from:
Net investment income		(.09	)
Net asset value, end of period		$16.11
Total Return(d)		7.94	%(e)(f)
Total Return(d)		10.67	%(e)(g)
Ratios to Average Net Assets:
Expenses, excluding expense reductions and including management fee waived and expenses reimbursed		1.10	%(h)
Expenses, including expense reductions, management fee waived and expenses reimbursed		1.10	%(h)
Expenses, excluding expense reductions, management fee waived and expenses reimbursed		44.39	%(h)
Net investment income		.94	%(h)
Supplemental Data:
Net assets, end of period (000)		$216
Portfolio turnover rate		49.29	%

^(a) Commencement of operations was 4/23/2010, SEC effective date and date shares first became available to the public was 5/1/2010.

^(b) Calculated using average shares outstanding during the period.

^(c) Amount is less than $.01.

^(d) Total return does not consider the effects of sales charges or other expenses imposed by an insurance company and assumes the reinvestment of all distributions.

^(e) Not annualized.

^(f) Total return for the period 4/23/10 through 12/31/10.

^(g) Total return for the period 5/1/10 through 12/31/10.

^(h) Annualized.

See Notes to Financial Statements.

13

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 and was incorporated under Maryland law in 1989. The Company consists of twelve separate portfolios (the “Funds”). This report covers Value Opportunities Portfolio (the “Fund”). The Fund commenced operations on April 23, 2010. The Fund became effective with the SEC and first made shares available to the public on May 1, 2010. 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 the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

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 fair value.

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

(c) Investment Income–Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis as earned. Discounts are accreted and premiums are amortized using the effective interest method and are included in Interest and other income in the Statement of Operations.

(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.

14

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 period ended December 31, 2010. 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, the Fund may incur a loss upon disposition of the securities.

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

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

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

• Level 3 - significant unobservable inputs (including 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.

15

Notes to Financial Statements (continued)

The following is a summary of the inputs used as of December 31, 2010 in valuing the Fund’s investments carried at value:

Investment Type*	Level 1		Level 2		Level 3		Total
Common Stocks	$	234,668	$	–	$	–	$	234,668
Total	$	234,668	$	–	$	–	$	234,668

* 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 rate:

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

For the period ended December 31, 2010, the effective management fee, net of waivers and expenses reimbursed, was at an annualized rate of .00% of the Fund’s average daily net assets.

In addition, Lord Abbett provides certain administrative services to the Fund pursuant to an Administrative Services Agreement in return for a fee at an annual rate of .04% of the Fund’s average daily net assets.

For the period April 23, 2010 to April 30, 2010, Lord Abbett voluntarily agreed to waive all or a portion of its management fee and, if necessary, reimburse the Fund’s other expenses to the extent necessary that the total net annual operating expenses do not exceed an annualized rate of 1.10%.

For the period May 1, 2010 through April 30, 2011, Lord Abbett has contractually agreed to continue such waivers under the same terms. This agreement may be terminated only upon the approval of the Fund’s Board of Directors.

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 period ended December 31, 2010, the Fund did not incur expenses for such services arrangements.

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

16

Notes to Financial Statements (continued)

4. DISTRIBUTIONS AND CAPITAL LOSS CARRYFORWARDS

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

The tax character of distributions paid during the fiscal period ended December 31, 2010 was as follows:

	Period Ended 12/31/2010*
Distributions paid from:
Ordinary income	$	1,227
Total distributions paid	$	1,227

* For the period April 23, 2010 (commencement of operations) to December 31, 2010.

As of December 31, 2010, the components of accumulated gains on a tax-basis were as follows:

Capital loss carryforward*	$	(7,736	)
Temporary differences		(4	)
Unrealized gains – net		23,215
Total accumulated gains – net	$	15,475

* As of December 31, 2010, the capital loss carryforward, along with the related expiration date was as follows:

2018		Total
	$7,736	$	7,736

As of December 31, 2010, the aggregate unrealized security gains and losses based on cost for U.S. federal income tax purposes were as follows:

Tax cost	$	211,453
Gross unrealized gain		25,341
Gross unrealized loss		(2,126	)
Net unrealized security gain	$	23,215

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

17

Notes to Financial Statements (continued)

Permanent items identified during the fiscal period ended December 31, 2010 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
$7	$	20	$	(27	)

The permanent differences are attributable to the tax treatment of certain distributions paid and received.

On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the “Modernization Act”) was signed by the President. The Modernization Act includes numerous provisions that generally become effective for taxable years beginning after the date of enactment. Management is currently assessing the impact of the Modernization Act as it relates to the Fund.

5.    PORTFOLIO SECURITIES TRANSACTIONS

Purchases and sales of investment securities (excluding short-term investments) for the fiscal period ended December 31, 2010 were as follows:

Purchases	Sales
$312,836	$	93,627

There were no purchases or sales of U.S. Government securities for the fiscal period ended December 31, 2010.

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 an arrangement with its transfer agent and custodian, whereby credits realized as a result of uninvested cash balances are used to reduce a portion of 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.

18

Notes to Financial Statements (continued)

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 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. Small and mid-sized company stocks, in which the Fund invests, may perform differently than the market as a whole and other types of stocks, such as large-company 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 the Fund’s exposure to foreign companies (and ADRs), 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:

	Period Ended December 31,  2010†
Shares sold		13,335
Reinvestment of distributions		76
Increase		13,411

^† For the period April 23, 2010 (commencement of operations) to December 31, 2010.

19

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 of Value Opportunities Portfolio, one of the portfolios constituting the Lord Abbett Series Fund, Inc. (the “Company”), including the schedule of investments, as of December 31, 2010, and the related statement of operations, changes in net assets, and the financial highlights for the period from April 23, 2010 (commencement of operations) to December 31, 2010. 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 audit.

We conducted our audit 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 audit 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, 2010, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audit provides 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 Value Opportunities Portfolio of the Lord Abbett Series Fund, Inc. as of December 31, 2010, the results of its operations, the changes in its net assets, and financial highlights for period from April 23, 2010 (commencement of operations) through December 31, 2010, in conformity with accounting principles generally accepted in the United States of America.

DELOITTE & TOUCHE LLP

New York, New York February 15, 2011

20

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 the investment adviser provides, and annually considers whether to renew the contract with the adviser. Generally, each Director holds office until his/her successor is elected and qualified or until his/her earlier resignation or removal, as provided in the Company’s organizational documents.

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

Interested Directors

The following Directors are associated with Lord Abbett and are “interested persons” of the Company as defined in the Act. Mr. Dow and Ms. Foster are officers and directors or trustees of each of the 13 Lord Abbett-sponsored funds, which consist of 53 portfolios or series.

Name, Address and Year of Birth	Current Position and Length of Service with the Company	Principal Occupation and Other Directorships During Past Five Years
Robert S. Dow Lord, Abbett & Co. LLC 90 Hudson Street Jersey City, NJ 07302 (1945)	Director since 1995 and Chairman since 1996	Principal Occupation: Senior Partner of Lord Abbett (since 2007) and was formerly Managing Partner (1996 - 2007) and Chief Investment Officer (1995 - 2007), joined Lord Abbett in 1972. Other Directorships: None.
Daria L. Foster Lord, Abbett & Co. LLC 90 Hudson Street Jersey City, NJ 07302 (1954)	Director and President since 2006	Principal Occupation: Managing Partner of Lord Abbett (since 2007), and was formerly Director of Marketing and Client Service, joined Lord Abbett in 1990. Other Directorships: None.

Independent Directors

The following Independent Directors also are directors or trustees of each of the 13 Lord Abbett-sponsored funds, which consist of 53 portfolios or series.

Name, Address and Year of Birth	Current Position and Length of Service with the Company	Principal Occupation and Other Directorships During Past Five Years
E. Thayer Bigelow Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1941)	Director since 1994	Principal Occupation: Managing General Partner, Bigelow Media, LLC (since 2000); Senior Adviser, Time Warner Inc. (1998 - 2000). Other Directorships: Currently serves as director of Crane Co. (since 1984) and Huttig Building Products Inc. (since 1998). Previously served as a director of R.H. Donnelley Inc. (2009 - 2010) and Adelphia Communications Inc. (2003 - 2007).

21

Basic Information About Management (continued)

Name, Address and Year of Birth	Current Position and Length of Service with the Company	Principal Occupation and Other Directorships During Past Five Years
Robert B. Calhoun, Jr. Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1942)	Director since 1998	Principal Occupation: Senior Advisor of Monitor Clipper Partners, a private equity investment fund (since 1997); President of Clipper Asset Management Corp. (1991 - 2009). Other Directorships: Previously served as a director of Avondale, Inc. (1991 - 2005) and Interstate Bakeries Corp. (1991 - 2008).
Evelyn E. Guernsey Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1955)	Director since 2011	Principal Occupation: CEO, Americas of J.P. Morgan Asset Management (2004 - 2010). Other Directorships: None.
Julie A. Hill Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1946)	Director since 2004	Principal Occupation: Owner and CEO of The Hill Company, a business consulting firm (since 1998). Other Directorships: Currently serves as director of WellPoint, Inc., a health benefits company (since 1994). Previously served as a director of Resources Connection, Inc., a consulting firm (2004 - 2007).
Franklin W. Hobbs Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1947)	Director since 2001	Principal Occupation: Advisor of One Equity Partners, a private equity firm (since 2004). Other Directorships: Currently serves as a director and Chairman of the Board of Ally Financial 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	Principal Occupation: Chairman of Spencer Stuart (U.S.), an executive search consulting firm (since 1996). Other Directorships: Currently serves as director of Ace, Ltd. (since 1997). Previously served as a director of Hewitt Associates, Inc. (2004 - 2010).
James L.L. Tullis Lord, Abbett & Co. LLC c/o Legal Dept. 90 Hudson Street Jersey City, NJ 07302 (1947)	Director since 2006	Principal Occupation: CEO of Tullis-Dickerson and Co. Inc., a venture capital management firm (since 1990). Other Directorships: Currently serves as director of Crane Co. (since 1998). Previously served as a director of Viacell Inc. (2003 - 2007).

22

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 also may be officers of the other Lord Abbett-sponsored funds and maintain offices at 90 Hudson Street, Jersey City, NJ 07302. Unless otherwise indicated, the position(s) and title(s) listed under the “Principal Occupation” column indicate each officer’s position(s) and title(s) with Lord Abbett.

Name and Year of Birth	Current Position with the 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 of Lord Abbett (since 2007), and was formerly Managing Partner (1996 - 2007) and Chief Investment Officer (1995 - 2007), joined Lord Abbett in 1972.
Daria L. Foster (1954)	President	Elected in 2006	Managing Partner of Lord Abbett (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.
Robert A. Lee (1969)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 1997.
Vincent J. McBride (1964)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 2003.
Andrew H. O’Brien (1973)	Executive Vice President	Elected in 2010	Partner and Portfolio Manager, joined Lord Abbett in 1998.
F. Thomas O’Halloran, III (1955)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 2001.

23

Basic Information About Management (continued)

Name and Year of Birth	Current Position with the Company	Length of Service of Current Position	Principal Occupation During Past Five Years
Harold E. Sharon (1960)	Executive Vice President	Elected in 2010	Partner and Director, joined Lord Abbett in 2003.
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.
A. Edward Allinson (1961)	Vice President	Elected in 2011	Portfolio Manager, joined Lord Abbett in 2005.
Sean J. Aurigemma (1969)	Vice President	Elected in 2010	Portfolio Manager, joined Lord Abbett in 2007 and was formerly a Managing Director and Portfolio Manager at Morgan Stanley (1999 - 2007).
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.
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	Partner and Director, joined Lord Abbett in 2001.

24

Basic Information About Management (continued)

Name and Year of Birth	Current Position with the Company	Length of Service of Current Position	Principal Occupation During Past Five Years
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).
Thomas B. Maher (1967)	Vice President	Elected in 2010	Partner and Portfolio Manager, joined Lord Abbett in 2003.
Justin C. Maurer (1969)	Vice President	Elected in 2010	Partner and Portfolio Manager, joined Lord Abbett in 2001.
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	Partner and Senior Deputy General Counsel, joined Lord Abbett in 2007 and was formerly an Executive Vice President and the General Counsel at Cohen & Steers Capital Management, Inc. (1999 - 2007).
Francis T. Timons (1969)	Vice President	Elected in 2010	Portfolio Manager, joined Lord Abbett in 2007 and was formerly a Research Analyst at Robert W. Baird & Co. (2004 - 2007).

25

Basic Information About Management (concluded)

Name and Year of Birth	Current Position with the Company	Length of Service of Current Position	Principal Occupation During Past Five Years
Arthur K. Weise (1970)	Vice President	Elected in 2010	Portfolio Manager, joined Lord Abbett in 2007 and was formerly a Managing Director, Portfolio Manager and Analyst at Bank of New York Institutional Asset Management (2005 - 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 March 3, 2010, 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 proposed management agreement between the Fund and Lord Abbett. 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. Additionally, the Board took into consideration its familiarity with Lord Abbett gained through its previous meetings and discussions.

The materials received by the Board included, but were not limited to: (1) information provided by Lipper Inc. regarding the effective management fee rates and expense ratios for one or more groups of funds with similar objectives and of similar size (the “peer expense group”); and (2) information regarding the personnel and other resources devoted by Lord Abbett to managing the Fund.

Investment Management Services Generally. The Board considered the investment management services to be provided by Lord Abbett to the Fund, including investment research, portfolio management, and trading, and Lord Abbett’s commitment to compliance with all relevant legal requirements. The Board also observed that Lord Abbett was 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 to be 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. Because the Fund had not yet begun operations, the Board was not able to review the Fund’s investment performance and compliance.

Lord Abbett’s Personnel and Methods. The Board considered the qualifications of the personnel who would be providing investment management services to the Fund, in light of its investment objective and discipline. The Board noted that the same personnel provided management services to Lord Abbett Value Opportunities Fund. 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 expected expense levels of the Fund and the expense levels of the peer expense group. It also considered the amount and nature of the fees to be paid by shareholders. The Board noted that it and Lord Abbett had agreed to cap expenses of the Fund for the period from May 1, 2010 through April 30, 2011 at 1.10% of average daily net assets.

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

27

overall 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.

Economies of Scale. The Board considered whether there might be economies of scale in managing the Fund and whether the Fund would benefit appropriately from any such economies of scale. The Board concluded that the proposed 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 to be paid by the Fund and the Fund’s shareholders to Lord Abbett and Distributor for services other than investment advisory services. The Board also considered the revenues and profitability of Lord Abbett’s investment advisory business apart from its mutual fund business, and the intangible benefits enjoyed by Lord Abbett by virtue of its relationship with the Fund. The Board observed that Distributor receives 12b-1 fees from certain of the Lord Abbett Funds as to shares held in accounts for which there is no other broker of record, may retain a portion of the 12b-1 fees 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.

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

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

100% of the ordinary income distributions paid by the Fund during the year is qualified dividend income.

For corporate shareholders, 100% of the ordinary income distributions is 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.

Value Opportunities Portfolio

SFVALOPP-PORT-2-1210

(02/11)

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, 2010 (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, 2010 and 2009 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:
	2010	2009
Audit Fees {a}	$408,500	$282,500
Audit-Related Fees	- 0 -	- 0 -
Total audit and audit-related fees	408,500	282,500
Tax Fees {b}	96,080	46,936
All Other Fees	- 0 -	- 0 -
Total Fees	$504,580	$329,436

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

{b} Fees for the fiscal year ended December 31, 2010 and 2009 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, 2010 and 2009 were:

	Fiscal year ended:
	2010	2009
All Other Fees {a}	$171,360	$161,385

{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, 2010 and 2009 were:

	Fiscal year ended:
	2010	2009
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 14, 2011
	By:	/s/ Joan A. Binstock
		Joan A. Binstock
		Chief Financial Officer and Vice President

Date: February 14, 2011

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 14, 2011
	By:	/s/ Joan A. Binstock
		Joan A. Binstock
		Chief Financial Officer and Vice President
Date: February 14, 2011