LORD ABBETT ANNUAL REPORT

LORD ABBETT ANNUAL REPORT Lord Abbett Municipal Income Fund Short Duration Tax Free Fund Intermediate Tax Free Fund AMT Free Municipal Bond Fund National Tax Free Fund High Yield Municipal Bond Fund Short Duration High Yield Municipal Bond Fund California Tax Free Fund New Jersey Tax Free Fund New York Tax Free Fund For the fiscal year ended September 30, 2017

Table of Contents 1 A Letter to Shareholders 7 Investment Comparisons 16 Information About Your Fund s Expenses and Holdings Presented by Rating Schedules of Investments: 26 Short Duration Tax Free Fund 39 Intermediate Tax Free Fund 66 AMT Free Municipal Bond Fund 78 National Tax Free Fund 95 High Yield Municipal Bond Fund 112 Short Duration High Yield Municipal Bond Fund 125 California Tax Free Fund 133 New Jersey Tax Free Fund 140 New York Tax Free Fund 149 Footnotes to Schedules of Investments 150 Statements of Assets and Liabilities 154 Statements of Operations 156 Statements of Changes in Net Assets 162 Financial Highlights 180 Notes to Financial Statements 202 Report of Independent Registered Public Accounting Firm 203 Supplemental Information to Shareholders

Lord Abbett Municipal Income Fund Annual Report For the fiscal year ended September 30, 2017 From left to right: James L.L. Tullis, Chairman of the Lord Abbett Funds and Daria L. Foster Director, President, and Chief Executive Officer of the Lord Abbett Funds. Dear Shareholders: We are pleased to provide you with this overview of the performance of the Municipal Income Funds for the fiscal year ended September 30, 2017. On this page and the following pages, we discuss the major factors that influenced fiscal year performance. For detailed and more timely information about the Funds, please visit our website at www.lordabbett.com, where you also can access quarterly commentaries that provide updates on each Fund s performance and other portfolio related updates. 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, Daria L. Foster Director, President and Chief Executive Officer Municipal Bond Market Review The unemployment rate declined to 4.2%, as of September 30, 2017. Total nonfarm payroll declined by 33,000 in September 2017, compared with an average monthly gain of 172,000 over the previous 12 months. Real gross domestic product (GDP) increased 3.1% in the second quarter of 2017, higher than the 1.2% increase in the first quarter. According to Simfund, municipal bond mutual funds have recorded approximately $25 billion in inflows for the calendar year-to-date period and slightly more than $1 billion in outflows over the one year period ending September 29, 2017. This comes after last year s challenging fourth quarter, where municipal funds experienced a total of $28 billion in outflows over the twomonth period following the U.S. presidential election. Municipal bond issuance for the calendar year-to-date period ended September 30, 2017 totaled approximately $287 billion, a 15.8% decrease in issuance compared with the prior calendar year-to- 1

date period. Refunding issuance decreased approximately 28% over the same period. Further, municipal and treasury yields have increased across the curve during the 12- month period ending on September 30, 2017. Despite the recent credit issues faced by a few large municipalities, municipal bond defaults have remained exceedingly rare over the long-term; from 1970 to 2016, the 10-year cumulative default rate on municipal credits has been 0.15%. While there are pockets of distress in the municipal bond market, the general trend has been one of improving credit fundamentals as demonstrated by the 28 th quarter of growth in tax collections for municipalities of the last 31 quarters, as of June 30, 2017. 50% Bloomberg Class A Bloomberg BC Shares Bloomberg Bloomberg Barclays Muni 1-8 at NAV Bloomberg Barclays Barclays Muni Bond Years/50% 12-Mo. Lipper Barclays 1-15 Yr. High Yield Short Bloomberg Returns as of Funds Muni Bond Muni Bond Muni Bond 1-5 Yr. BC HY Muni 9/30/17 Average 1 Index 2 Index 3 Index 4 Index 5 1-8 Years 6 Short Duration Tax Free Fund 0.26% 0.71% 1.18% Intermediate Tax Free Fund 0.18% 0.42% 0.97% AMT Free Municipal Bond Fund 0.17% 0.49% 0.87% National Tax Free Fund 0.43% 0.49% 0.87% High Yield Municipal Bond Fund 1.41% 0.98% 1.43% Short Duration High Yield Municipal Bond Fund 1.06% 0.98% -1.41% California Tax Free Fund -0.12% 0.03% 0.87% New Jersey Tax Free Fund -0.08% -0.12% 0.87% New York Tax Free Fund -0.31% 0.13% 0.87% Short Duration Tax Free Fund The Short Duration Tax Free Fund underperformed its benchmark, the Bloomberg Barclays Municipal Bond Short 1-5 Year Index, 5 during the 12-month period ended September 30, 2017. Bonds within the 3- to 5-year maturity range contributed most to the portfolio s total return, while those with maturities greater than 7 years did not contribute as much, 2

despite mostly positive returns. In terms of credit qualities, the Fund s allocation to AA, A, and BBB bonds all meaningfully contributed to overall performance, while BB rated credits detracted. With regard to sectors, local general obligation and health care bonds were among the strongest contributors to absolute returns, while electric revenue bonds contributed the least. Intermediate Tax Free Fund The Intermediate Tax Free Fund underperformed its benchmark, the Bloomberg Barclays 1-15 Year Municipal Bond Index, 3 during the 12-month period ended September 30, 2017. The Fund s exposure to bonds within the 12- to 14- year maturity range contributed most to absolute performance, while bonds with maturities of less than five years detracted. The Fund s exposure to the lower tiers of the investment grade range contributed most to the portfolio s total return. Bonds in the BB credit quality range detracted. With regard to sectors, local general obligation bonds were the strongest contributors to absolute returns, while health care credits detracted the most. AMT Free Municipal Bond Fund The AMT Free Municipal Bond Fund underperformed its benchmark, the Bloomberg Barclays Municipal Bond Index, 2 during the 12-month period ended September 30, 2017. The Fund s exposure to bonds within the 12- to 20-year maturity range contributed most to absolute performance, while bonds with maturities of less than six years detracted. The Fund s exposure to BBB rated bonds contributed most to performance, while BB rated credits detracted. With regard to sectors, local general obligation bonds were the strongest contributors to overall performance, while prepaid gas bonds detracted from performance. National Tax Free Fund The National Tax Free Fund underperformed its benchmark, the Bloomberg Barclays Municipal Bond Index, 2 during the 12-month period ended September 30, 2017. The Fund s exposure to bonds within the 16- to 25-year maturity range contributed most to absolute performance, while bonds with maturities of less than 5 years detracted. The Fund s allocation to AA, A, and BBB rated bonds all meaningfully contributed to absolute performance, while bonds in the BB credit quality range detracted. Local general obligation and airport bonds were among the strongest contributors to absolute returns, while electric revenue bonds detracted. High Yield Municipal Bond Fund The High Yield Municipal Bond Fund underperformed its benchmark, the Bloomberg Barclays High Yield Municipal Bond Index, 4 during the 12-month period ended September 30, 2017. The Fund s exposure to bonds with maturities greater 3

than 25 years contributed to absolute performance, while bonds in the 20- to 25- year maturity range detracted. The Fund s allocation to BBB, BB, and B rated bonds all meaningfully contributed to absolute performance, while those with ratings lower than B detracted. With regard to sectors, local general obligation bonds were the strongest contributors to absolute returns, while electric revenue bonds detracted from absolute performance. The Fund s exposure to Puerto Rico bonds detracted from absolute performance. Bonds from various Puerto Rican issuers have been under pressure since Hurricane Maria made landfall on September 20, 2017, due to the increased risk of weaker outcomes for bondholders, as a result of the extreme stress on the commonwealth s economy. Short Duration High Yield Municipal Bond Fund The Short Duration High Yield Municipal Bond Fund outperformed its benchmark, a 50%/50% blend of the Bloomberg Barclays Municipal 1-8 Year Index and the Bloomberg Barclays High Yield Municipal 1-8 Year Index, 6 during the 12-month period ended September 30, 2017. Bonds with maturities in the range of 5- to 8 years contributed most to the portfolio s total return while bonds with maturities of 10 years and longer did not contribute as much. The Fund s allocation to BBB rated bonds contributed most to performance. With regard to revenue sectors, industrial development bonds were among the strongest contributors to absolute returns, while electric revenue credits detracted. California Tax Free Fund The California Tax Free Fund underperformed its benchmark, the Bloomberg Barclays Municipal Bond Index, 2 during the 12-month period ended September 30, 2017. The Fund s exposure to bonds within the 16- to 20-year maturity range contributed most to absolute performance, while bonds in the 20- to 30-year range detracted. The Fund s allocation to A rated bonds contributed most to absolute performance. With regard to sectors, tobacco bonds were the strongest contributors to absolute returns, while health care bonds detracted. General obligation debt issued by the State of California has maintained its AA- rating from Fitch, as of the most recent update. At the time of the most recent rating upgrade, August 2016, Fitch cited positive credit developments for the state as well as numerous institutional improvements as reason for the rating increase. Although California s unemployment rate is higher than that of many other states, it boasted GDP of $2.67 trillion, the highest of any state, in the first quarter of 2017. New Jersey Tax Free Fund The New Jersey Tax Free Fund underperformed its benchmark, the Bloomberg Barclays Municipal Bond Index, 2 during the 12-month period ended 4

September 30, 2017. The Fund s exposure to bonds within the 12- to 13-year and 16- to 20-year maturity ranges contributed most to absolute performance, while bonds within the 20- to 25-year range detracted. The Fund s exposure to A rated credits contributed to overall performance. With regard to sectors, tobacco and government lease bonds were among the strongest contributors to absolute returns, while state general obligation bonds detracted. General obligation debt issued by the State of New Jersey was downgraded to A3 from A2 with a revised outlook of stable by Moody s, in late-march 2017. Moody s downgrade reflects the continued negative impact of significant pension underfunding, including growth in the state s large long-term liabilities, a persistent structural imbalance, and weak fund balances. As of August 2017, the Bureau of Labor Statistics reported the New Jersey unemployment rate at 4.5%, down from 5.3% in September 2016. New York Tax Free Fund The New York Tax Free Fund underperformed its benchmark, the Bloomberg Barclays Municipal Bond Index, 2 during the 12-month period ended September 30, 2017. The Fund s exposure to bonds within the 16- to 20-year maturity range contributed most to absolute performance, while bonds within the 20- to 25-year range detracted. The Fund s allocation to A rated bonds contributed most to overall performance. With regard to sectors, tobacco bonds were the strongest contributors to absolute returns, while state general obligation bonds detracted. General obligation debt issued by the State of New York is rated AA+ by both S&P and Fitch, as of the most recent disclosure. As of August 2017, the Bureau of Labor Statistics reported the New York unemployment rate at 4.8% for the state, down from 5.0% in September 2016. Each 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 Lipper Funds Average: Lipper, Inc. is a nationally recognized organization that reports on mutual fund total return performance, calculates fund rankings and is a global leader in benchmarking and classifying mutual funds. Peer averages are based on universes of funds with similar investment objectives. Peer group averages include reinvested dividends and capital gains, if any, and exclude sales charges. 2 The Bloomberg Barclays Municipal Bond Index is a rules-based, market-value-weighted index engineered for the long-term tax-exempt bond market. Bonds must be rated investment-grade (Baa3/BBB- or higher) by at least two ratings agencies. They must have an outstanding par value of at least $7 million and be issued as part of a transaction of at least $75 million. The bonds must be fixed rate, have a dateddate after December 31, 1990, and must be at least one year from their maturity date. 3 The Bloomberg Barclays 1-15 Year Municipal Bond Index is the 1-15 year component of the Municipal Bond index. The Bloomberg Barclays Municipal Bond 5

Index is a rules-based, market-value-weighted index engineered for the long-term tax-exempt bond market. The index is a broad measure of the municipal bond market with maturities of at least one year. To be included in the index, bonds must be rated investment-grade (Baa3/BBB- or higher) by at least two of the following ratings agencies: Moody s, S&P, Fitch. If only two of the three agencies rate the security, the lower rating is used to determine index eligibility. If only one of the three agencies rates a security, the rating must be investment-grade. They must have an outstanding par value of at least $7 million and be issued as part of a transaction of at least $75 million. The bonds must be fixed rate, have a dated-date after December 31, 1990, and must be at least one year from their maturity date. 4 The Bloomberg Barclays High Yield Municipal Bond Index is an unmanaged index consisting of noninvestment-grade, unrated or below Ba1 bonds. 5 The Bloomberg Barclays Municipal Bond Short 1-5 Year Index is the Muni Short 1-5 year component of the Municipal Bond index. The Bloomberg Barclays Municipal Bond Index is a rules-based, market-valueweighted index engineered for the long-term taxexempt bond market. The index is a broad measure of the municipal bond market with maturities of at least one year. To be included in the index, bonds must be rated investment-grade (Baa3/BBB- or higher) by at least two of the following ratings agencies: Moody s, S&P, Fitch. If only two of the three agencies rate the security, the lower rating is used to determine index eligibility. If only one of the three agencies rates a security, the rating must be investment grade. They must have an outstanding par value of at least $7 million and be issued as part of a transaction of at least $75 million. The bonds must be fixed rate, have a dated-date after December 31, 1990, and must be at least one year from their maturity date. 6 The Bloomberg Barclays 1-8 Year Municipal Bond Index is the 1-8 year component of the Municipal Bond index. The Bloomberg Barclays Municipal Bond Index is a rules-based, market-valueweighted index engineered for the long-term taxexempt bond market. The index is a broad measure of the municipal bond market with maturities of at least one year. Bonds must have an outstanding par value of at least $7 million and be issued as part of a transaction of at least $75 million. The Bloomberg Barclays 1-8 Year High Yield Municipal Bond Index is the 1-8 year component of the High Yield Municipal Bond index. The Bloomberg Barclays High Yield Municipal Bond Index is an unmanaged index consisting of noninvestment-grade, unrated or below Ba1 bonds. 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 Funds 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. Except where noted, comparative Fund performance does not account for the deduction of sales charges and would be different if sales charges were included. Each Fund offers classes of shares with distinct pricing options. For a full description of the differences in pricing alternatives, please see each Fund s prospectus. During certain periods shown, expense waivers and reimbursements were in place. Without such waivers and expense reimbursements, the Funds returns would have been lower. The annual commentary above discusses the views of the Funds management and various portfolio holdings of the Funds as of September 30, 2017. These views and portfolio holdings may have changed after this date. Information provided in the commentary is not a recommendation to buy or sell securities. Because each Fund s portfolio is actively managed and may change significantly, the Fund may no longer own the securities described above or may have otherwise changed their positions in the securities. For more recent information about the Funds portfolio holdings, please visit www.lordabbett.com. 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 each Fund, please see each 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. 6

Short Duration Tax Free Fund Investment Comparison Below is a comparison of a $10,000 investment in Class A shares to the same investment in the Bloomberg Barclays Municipal Bond Short 1-5 Year Index and the Lipper Short Municipal Debt Funds Average, assuming reinvestment of all dividends and distributions. The performance of other classes will be greater than or less than the performance shown in the graph below due to different sales loads and expenses applicable to such classes. 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. $13,000 $12,000 $11,000 The Fund (Class A shares) at net asset value The Fund (Class A shares) at maximum offering price 1 Bloomberg Barclays Municipal Bond Short 1-5 Year Index 2 Lipper Short Municipal Debt Funds Average 3 $12,010 $11,891 $11,622 $11,535 $10,000 $9,000 Dec. 31, 08 09 10 11 12 13 14 15 16 17 Average Annual Total Returns at Maximum Applicable Sales Charge for the Periods Ended September 30, 2017 1 Year 5 Years Life of Class Class A 4-1.98% 0.28% 1.73% Class C 5-1.35% 0.11% 1.31% Class F 6 0.35% 0.84% 2.10% Class F3 7 1.23%* Class I 6 0.52% 0.95% 2.21% Class T 8-2.38%* Standardized Yield for the Period Ended September 30, 2017 Class A Class C Class F Class F3 Class I Class T 0.70% 0.12% 0.82% 0.94% 0.92% 0.66% 1 Reflects the deduction of the maximum initial sales charge of 2.25%. 2 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. 3 Source: Lipper Inc. The performance of the average is not necessarily representative of the Fund s performance. 4 Total return, which is the percent change in value, after deduction of the maximum initial sales charge of 2.25% applicable to Class A shares, with all dividends and distributions reinvested for period shown ended September 30, 2017, is calculated using the SEC required uniform method to compute such return. Class A shares commenced operations on December 12, 2008. Performance for the Class began December 31, 2008. 5 Class C shares commenced operations on December 12, 2008. The 1% CDSC for Class C shares normally applies before the first anniversary of the purchase date. Performance for the Class began December 31, 2008. Performance for other periods is at net asset value. 6 Class F and Class I shares commenced operations on December 12, 2008. Performance for the Class began December 31, 2008. Performance is at net asset value. 7 Class F3 shares commenced operations and performance for the Class began on April 4, 2017. Performance is at net asset value. 8 Total return, which is the percent change in value, after deduction of the maximum initial sales charge of 2.50% applicable to Class T shares, with all dividends and distributions reinvested for periods shown ended September 30, 2017, is calculated using the SEC required uniform method to compute such return. Class T shares commenced operations and performance for the Class began on July 28, 2017. Performance is at net asset value. * Since Classes F3 and T shares have existed for less than one year, average annual returns are not provided. 7

Intermediate Tax Free Fund Investment Comparison Below is a comparison of a $10,000 investment in Class A shares to the same investment in the Bloomberg Barclays 1-15 Year Municipal Bond Index and the Lipper Intermediate Municipal Debt Funds Average, assuming reinvestment of all dividends and distributions. The performance of other classes will be greater than or less than the performance shown in the graph below due to different sales loads and expenses applicable to such classes. 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. $16,000 $14,000 The Fund (Class A shares) at net asset value The Fund (Class A shares) at maximum offering price 1 Bloomberg Barclays 1-15 Year Municipal Bond Index 2 Lipper Intermediate Municipal Debt Funds Average 3 $15,412 $15,072 $15,018 $14,108 $12,000 $10,000 $8,000 Sep. 30, 07 08 09 10 11 12 13 14 15 16 17 Average Annual Total Returns at Maximum Applicable Sales Charge for the Periods Ended September 30, 2017 1 Year 5 Years 10 Years Life of Class Class A 4-2.11% 2.15% 4.19% Class B 5-5.51% 1.43% 3.77% Class C 6-1.43% 1.96% 3.72% Class F 7 0.28% 2.72% 4.53% Class F3 8 3.16%* Class I 9 0.38% 2.80% 4.55% Class T 10-2.06%* Standardized Yield for the Period Ended September 30, 2017 Class A Class B Class C Class F Class F3 Class I Class T 1.58% 0.81% 0.99% 1.71% 1.84% 1.81% 1.58% 1 Reflects the deduction of the maximum initial sales charge of 2.25%. 2 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. 3 Source: Lipper Inc. The performance of the average is not necessarily representative of the Fund s performance. 4 Total return, which is the percent change in value, after deduction of the maximum initial sales charge of 2.25% applicable to Class A shares, with all dividends and distributions reinvested for periods shown ended September 30, 2017, is calculated using the SEC required uniform method to compute such return. 5 Performance reflects the deduction of CDSC of 5% for 1 year, 2% for 5 years and 0% for 10 years. Class B shares automatically convert to Class A shares after approximately 8 years. (There is no initial sales charge for automatic conversions.) All returns for periods greater than 8 years reflect this conversion. 8 6 The 1% CDSC for Class C shares normally applies before the first anniversary of the purchase date. Performance for other periods is at net asset value. 7 Performance is at net asset value. 8 Class F3 shares commenced operations and performance for the Class began on April 4, 2017. Performance is at net asset value. 9 Class I shares commenced operations and performance for the Class began on January 31, 2011. Performance is at net asset value. 10 Total return, which is the percent change in value, after deduction of the maximum initial sales charge of 2.50% applicable to Class T shares, with all dividends and distributions reinvested for periods shown ended September 30, 2017, is calculated using the SEC required uniform method to compute such return. Class T shares commenced operations and performance for the Class began on July 28, 2017. Performance is at net asset value. * Since Classes F3 and T shares have existed for less than one year, average annual returns are not provided.

AMT Free Municipal Bond Fund Investment Comparison Below is a comparison of a $10,000 investment in Class A shares to the same investment in the Bloomberg Barclays Municipal Bond Index and the Lipper General Municipal Debt Funds Average, assuming reinvestment of all dividends and distributions. The performance of other classes will be greater than or less than the performance shown in the graph below due to different sales loads and expenses applicable to such classes. 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. $14,000 $13,000 The Fund (Class A shares) at net asset value The Fund (Class A shares) at maximum offering price 1 Bloomberg Barclays Municipal Bond Index 2 Lipper General Municipal Debt Funds Average 3 $13,785 $13,471 $13,084 $13,034 $12,000 $11,000 $10,000 $9,000 Oct. 29, 10 11 12 13 14 15 16 17 Average Annual Total Returns at Maximum Applicable Sales Charge for the Periods Ended September 30, 2017 1 Year 5 Years Life of Class Class A 4-2.08% 2.56% 4.40% Class C 5-1.37% 2.37% 4.02% Class F 6 0.33% 3.14% 4.85% Class F3 7 3.77%* Class I 6 0.37% 3.25% 4.97% Standardized Yield for the Period Ended September 30, 2017 Class A Class C Class F Class F3 Class I 2.18% 1.60% 2.33% 2.47% 2.41% 1 Reflects the deduction of the maximum initial sales charge of 2.25%. 2 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. 3 Source: Lipper Inc. The performance of the average is not necessarily representative of the Fund s performance. 4 Total return, which is the percent change in value, after deduction of the maximum initial sales charge of 2.25% applicable to Class A shares, with all dividends and distributions reinvested for period shown ended September 30, 2017, is calculated using the SEC required uniform method to compute such return. Class A shares commenced operations on October 26, 2010. Performance for the Class began October 29, 2010. 5 Class C shares commenced operations on October 26, 2010. The 1% CDSC for Class C shares normally applies before the first anniversary of the purchase date. Performance for the Class began October 29, 2010. Performance for other periods is at net asset value. 6 Class F and Class I shares commenced operations on October 26, 2010. Performance for the Class began October 29, 2010. Performance is at net asset value. 7 Class F3 shares commenced operations and performance for the Class began on April 4, 2017. Performance is at net asset value. * Since Class F3 shares have existed for less than one year, average annual returns are not provided. 9

National Tax Free Fund Investment Comparison Below is a comparison of a $10,000 investment in Class A shares to the same investment in the Bloomberg Barclays Municipal Bond Index and the Lipper General Municipal Debt Funds Average, assuming reinvestment of all dividends and distributions. The performance of other classes will be greater than or less than the performance shown in the graph below due to different sales loads and expenses applicable to such classes. 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. $16,000 $14,000 The Fund (Class A shares) at net asset value The Fund (Class A shares) at maximum offering price 1 Bloomberg Barclays Municipal Bond Index 2 Lipper General Municipal Debt Funds Average 3 $15,673 $15,559 $15,315 $14,866 $12,000 $10,000 $8,000 Sep. 30, 07 08 09 10 11 12 13 14 15 16 17 Average Annual Total Returns at Maximum Applicable Sales Charge for the Periods Ended September 30, 2017 1 Year 5 Years 10 Years Life of Class Class A 4-1.83% 2.93% 4.35% Class B 5-5.21% 2.21% 3.94% Class C 6-1.16% 2.76% 3.91% Class F 7 0.53% 3.51% 4.69% Class F3 8 3.80%* Class I 9 0.63% 3.58% 5.27% Standardized Yield for the Period Ended September 30, 2017 Class A Class B Class C Class F Class F3 Class I 2.12% 1.36% 1.55% 2.27% 2.45% 2.37% 1 Reflects the deduction of the maximum initial sales charge of 2.25%. 2 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. 3 Source: Lipper Inc. The performance of the average is not necessarily representative of the Fund s performance. 4 Total return, which is the percent change in value, after deduction of the maximum initial sales charge of 2.25% applicable to Class A shares, with all dividends and distributions reinvested for periods shown ended September 30, 2017, is calculated using the SEC required uniform method to compute such return. 5 Performance reflects the deduction of a CDSC of 5% for 1 year, 10 2% for 5 years and 0% for 10 years. Class B shares automatically convert to Class A shares after approximately 8 years. (There is no initial sales charge for automatic conversions.) All returns for periods greater than 8 years reflect this conversion. 6 The 1% CDSC for Class C shares normally applies before the first anniversary of the purchase date. Performance for other periods is at net asset value. 7 Performance is at net asset value. 8 Class F3 shares commenced operations and performance for the Class began on April 4, 2017. Performance is at net asset value. 9 Class I shares commenced operations and performance for the Class began on July 26, 2010. Performance is at net asset value. * Since Class F3 shares have existed for less than one year, average annual returns are not provided.

High Yield Municipal Bond Fund Investment Comparison Below is a comparison of a $10,000 investment in Class A shares to the same investment in the Bloomberg Barclays High Yield Municipal Bond Index, 85% Bloomberg Barclays High Yield Municipal Bond Index/15% Bloomberg Barclays Municipal Bond Index and the Lipper High Yield Municipal Debt Funds Average, assuming reinvestment of all dividends and distributions. The performance of other classes will be greater than or less than the performance shown in the graph below due to different sales loads and expenses applicable to such classes. 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. $18,000 $16,000 $14,000 $12,000 The Fund (Class A shares) at net asset value The Fund (Class A shares) at maximum offering price 1 Bloomberg Barclays High Yield Municipal Bond Index 2 85% Bloomberg Barclays High Yield Municipal Bond Index/ 15% Bloomberg Barclays Municipal Bond Index 2 Lipper High Yield Municipal Debt Funds Average 3 $15,894 $15,884 $14,973 $13,406 $13,101 $10,000 $8,000 $6,000 Sep. 30, 07 08 09 10 11 12 13 14 15 16 17 Average Annual Total Returns at Maximum Applicable Sales Charge for the Periods Ended September 30, 2017 1 Year 5 Years 10 Years Life of Class Class A 4-0.87% 4.06% 2.74% Class C 5-0.19% 3.87% 2.33% Class F 6 1.51% 4.62% 3.08% Class F3 7 4.11%* Class I 8 1.57% 4.66% 5.53% Class T 9-1.47%* Standardized Yield for the Period Ended September 30, 2017 Class A Class C Class F Class F3 Class I Class T 3.28% 2.74% 3.46% 3.59% 3.56% 3.29% 1 Reflects the deduction of the maximum initial sales charge of 2.25%. 2 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. 3 Source: Lipper Inc. The performance of the average is not necessarily representative of the Fund s performance. 4 Total return, which is the percent change in value, after deduction of the maximum initial sales charge of 2.25% applicable to Class A shares, with all dividends and distributions reinvested for periods shown ended September 30, 2017, is calculated using SEC required uniform method to compute such return. 5 The 1% CDSC for Class C shares normally applies before the first anniversary of the purchase date. Performance for other periods is at net asset value. 6 Performance is at net asset value. 7 Class F3 shares commenced operations and performance for the Class began on April 4, 2017. Performance is at net asset value. 8 Class I shares commenced operations and performance for the Class began on July 26, 2010. Performance is at net asset value. 9 Total return, which is the percent change in value, after deduction of the maximum initial sales charge of 2.50% applicable to Class T shares, with all dividends and distributions reinvested for periods shown ended September 30, 2017, is calculated using the SEC required uniform method to compute such return. Class T shares commenced operations and performance for the Class began on July 28, 2017. Performance is at net asset value. * Since Classes F3 and T shares have existed for less than one year, average annual returns are not provided. 11

Short Duration High Yield Municipal Bond Fund Investment Comparison Below is a comparison of a $10,000 investment in Class A shares to the same investment in the 50% Bloomberg Barclays Municipal Bond 1-8 Year Index/50% Bloomberg Barclays High Yield Municipal 1-8 Year Index and the Lipper High Yield Municipal Debt Funds Average, assuming reinvestment of all dividends and distributions. The performance of other classes will be greater than or less than the performance shown in the graph below due to different sales loads and expenses applicable to such classes. 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. $13,000 $12,000 $11,000 $10,000 The Fund (Class A shares) at net asset value The Fund (Class A shares) at maximum offering price 1 50% Bloomberg Barclays Municipal Bond 1-8 Year Index/ 50% Bloomberg Barclays High Yield Municipal 1-8 Year Index 2 Lipper High Yield Municipal Debt Funds Average 3 $11,116 $10,781 $10,536 $10,070 $9,000 $8,000 Jun. 15, 15 15 16 17 Average Annual Total Returns at Maximum Applicable Sales Charge for the Periods Ended September 30, 2017 1 Year Life of Class Class A 4-1.23% 2.30% Class C 5-0.67% 2.54% Class F 6 1.16% 3.43% Class F3 7 3.33%* Class I 6 1.26% 3.53% Standardized Yield for the Period Ended September 30, 2017 Class A Class C Class F Class F3 Class I 2.19% 1.54% 2.35% 2.51% 2.45% 1 Reflects the deduction of the maximum initial sales charge of 2.25%. 2 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. 3 Source: Lipper Inc. The performance of the average is not necessarily representative of the Fund s performance. 4 Class A shares commenced operations on June 1, 2015 and performance for the Class began on June 15, 2015. Total return, which is the percent change in value, after deduction of the maximum initial sales charge of 2.25% applicable to Class A shares, with all dividends and distributions reinvested for periods shown ended September 30, 2017, is calculated using SEC required uniform method to compute such return. 12 5 Class C shares commenced operations on June 1, 2015 and performance for the Class began on June 15, 2015. The 1% CDSC for Class C shares normally applies before the first anniversary of the purchase date. Performance for other periods is at net asset value. 6 Class F and Class Icommenced operations on June 1, 2015 and performance for the Class began on June 15, 2015. Performance is at net asset value. 7 Class F3 shares commenced operations and performance for the Class began on April 4, 2017. Performance is at net asset value. * Since Class F3 shares have existed for less than one year, average annual returns are not provided.

California Tax Free Fund Investment Comparison Below is a comparison of a $10,000 investment in Class A shares to the same investment in the Bloomberg Barclays Municipal Bond Index and the Lipper California Municipal Debt Funds Average, assuming reinvestment of all dividends and distributions. The performance of other classes will be greater than or less than the performance shown in the graph below due to different sales loads and expenses applicable to such classes. 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. $16,000 $14,000 The Fund (Class A shares) at net asset value The Fund (Class A shares) at maximum offering price 1 Bloomberg Barclays Municipal Bond Index 2,3 Lipper California Municipal Debt Funds Average 4 $15,559 $15,483 $15,357 $15,140 $12,000 $10,000 $8,000 Sep. 30, 07 08 09 10 11 12 13 14 15 16 17 Average Annual Total Returns at Maximum Applicable Sales Charge for the Periods Ended September 30, 2017 1 Year 5 Years 10 Years Life of Class Class A 5-2.36% 3.40% 4.23% Class C 6-1.81% 3.22% 3.79% Class F 7-0.02% 3.98% 4.57% Class F3 8 3.30%* Class I 9-0.01% 4.07% 6.61% Standardized Yield for the Period Ended September 30, 2017 Class A Class C Class F Class F3 Class I 1.83% 1.23% 1.97% 2.28% 2.07% 1 Reflects the deduction of the maximum initial sales charge of 2.25%. 2 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. 3 The Index is composed of municipal bonds from many states while the Fund is a single-state municipal bond portfolio. 4 Source: Lipper Inc. The performance of the average is not necessarily representative of the Fund s performance. 5 Total return, which is the percent change in value, after deduction of the maximum initial sales charge of 2.25% applicable to Class A shares, with all dividends and distributions reinvested for periods shown ended September 30, 2017, is calculated using the SEC required uniform method to compute such return. 6 The 1% CDSC for Class C shares normally applies before the first anniversary of the purchase date. Performance for other periods is at net asset value. 7 Performance is at net asset value. 8 Class F3 shares commenced operations and performance for the Class began on April 4, 2017. Performance is at net asset value. 9 Class I shares commenced operations and performance for the Class began on January 31, 2011. Performance is at net asset value. * Since Class F3 shares have existed for less than one year, average annual returns are not provided. 13

New Jersey Tax Free Fund Investment Comparison Below is a comparison of a $10,000 investment in Class A shares to the same investment in the Bloomberg Barclays Municipal Bond Index and the Lipper New Jersey Municipal Debt Funds Average, assuming reinvestment of all dividends and distributions. The performance of the other class will be greater than or less than the performance shown in the graph below due to different sales loads and expenses applicable to such classes. 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. $16,000 $14,000 The Fund (Class A shares) at net asset value The Fund (Class A shares) at maximum offering price 1 Bloomberg Barclays Municipal Bond Index 2,3 Lipper New Jersey Municipal Debt Funds Average 4 $15,559 $14,599 $14,441 $14,257 $12,000 $10,000 $8,000 Sep. 30, 07 08 09 10 11 12 13 14 15 16 17 Average Annual Total Returns at Maximum Applicable Sales Charge for the Periods Ended September 30, 2017 1 Year 5 Years 10 Years Life of Class Class A 5-2.37% 2.41% 3.61% Class F 6 0.02% 2.99% 3.96% Class F3 7 3.55%* Class I 8 0.30% 3.17% 5.65% Standardized Yield for the Period Ended September 30, 2017 Class A Class F Class F3 Class I 2.05% 2.19% 2.33% 2.26% 1 Reflects the deduction of the maximum initial sales charge of 2.25%. 2 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. 3 The Index is composed of municipal bonds from many states while the Fund is a single-state municipal bond portfolio. 4 Source: Lipper Inc. The performance of the average is not necessarily representative of the Fund s performance. 5 Total return, which is the percent change in value, after deduction of the maximum initial sales charge of 2.25% applicable to Class A shares, with all dividends and distributions reinvested for periods shown ended September 30, 2017, is calculated using the SEC required uniform method to compute such return. 6 Performance is at net asset value. 7 Class F3 shares commenced operations and performance for the Class began on April 4, 2017. Performance is at net asset value. 8 Class I shares commenced operations and performance for the Class began on January 31, 2011. Performance is at net asset value. * Since Class F3 shares have existed for less than one year, average annual returns are not provided. 14

New York Tax Free Fund Investment Comparison Below is a comparison of a $10,000 investment in Class A shares to the same investment in the Bloomberg Barclays Municipal Bond Index and the Lipper New York Municipal Debt Funds Average, assuming reinvestment of all dividends and distributions. The performance of the other classes will be greater than or less than the performance shown in the graph below due to different sales loads and expenses applicable to such classes. 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. $16,000 $14,000 The Fund (Class A shares) at net asset value The Fund (Class A shares) at maximum offering price 1 Bloomberg Barclays Municipal Bond Index 2,3 Lipper New York Municipal Debt Funds Average 4 $15,559 $15,035 $14,700 $14,656 $12,000 $10,000 $8,000 Sep. 30, 07 08 09 10 11 12 13 14 15 16 17 Average Annual Total Returns at Maximum Applicable Sales Charge for the Periods Ended September 30, 2017 1 Year 5 Years 10 Years Life of Class Class A 5-2.57% 2.52% 3.93% Class C 6-1.92% 2.32% 3.49% Class F 7-0.21% 3.08% 4.27% Class F3 8 2.67%* Class I 9-0.11% 3.18% 5.41% Standardized Yield for the Period Ended September 30, 2017 Class A Class C Class F Class F3 Class I 1.68% 1.10% 1.82% 1.93% 1.92% 1 Reflects the deduction of the maximum initial sales charge of 2.25%. 2 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. 3 The Index is composed of municipal bonds from many states while the Fund is a single-state municipal bond portfolio. 4 Source: Lipper Inc. The performance of the average is not necessarily representative of the Fund s performance. 5 Total return, which is the percent change in value, after deduction of the maximum initial sales charge of 2.25% applicable to Class A shares, with all dividends and distributions reinvested for periods shown ended September 30, 2017, is calculated using the SEC required uniform method to compute such return. 6 The 1% CDSC for Class C shares normally applies before the first anniversary of the purchase date. Performance for other periodsis at net asset value. 7 Performance is at net asset value. 8 Class F3 shares commenced operations and performance for the Class began on April 4, 2017. Performance is at net asset value. 9 Class I shares commenced operations and performance for the Class began on January 30, 2011. Performance is at net asset value. * Since Class F3 shares have existed for less than one year, average annual returns are not provided. 15

Expense Example As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments (these charges vary among the share classes); and (2) ongoing costs, including management fees; distribution and service (12b-1) fees (these charges vary among the share classes); and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a 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 (April 1, 2017 through September 30, 2017). Actual Expenses For each class of each Fund, the first line of the table on the following pages 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 Period 4/1/17 9/30/17" to estimate the expenses you paid on your account during this period. Hypothetical Example for Comparison Purposes For each class of each Fund, the second line of the table on the following pages 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 a 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. 16

Short Duration Tax Free Fund 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 (loads). 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 Ending Expenses Account Account Paid During Value Value Period 4/1/17-4/1/17 9/30/17 9/30/17 Class A Actual $1,000.00 $1,011.30 $3.28 Hypothetical (5% Return Before Expenses) $1,000.00 $1,021.81 $3.29 Class C Actual $1,000.00 $1,008.20 $6.34 Hypothetical (5% Return Before Expenses) $1,000.00 $1,018.75 $6.38 Class F Actual $1,000.00 $1,011.80 $2.77 Hypothetical (5% Return Before Expenses) $1,000.00 $1,022.31 $2.79 Class F3 Actual $1,000.00 $1,012.30 $2.12 Hypothetical (5% Return Before Expenses) $1,000.00 $1,022.40 $2.13 Class I Actual $1,000.00 $1,012.30 $2.27 Hypothetical (5% Return Before Expenses) $1,000.00 $1,022.81 $2.28 Class T Actual $1,000.00 $1,001.10 $1.19 Hypothetical (5% Return Before Expenses) $1,000.00 $1,007.57 $1.20 For each class of the Fund, net expenses are equal to the annualized expense ratio for such class (0.65% for Class A, 1.26% for Class C, 0.55% for Class F, 0.43% for Class F3, 0.45% for Class I and 0.68% for Class T) multiplied by the average account value over the period, multiplied by 183/365 (to reflect one-half year period for Classes A, C, F and I), multiplied by 179/365 (to reflect the period from April 4, 2017, commencement of operations, to September 30, 2017, for Class F3) and multiplied by 64/365 (to reflect the period from July 28, 2017, commencement of operations to September 30, 2017, for Class T). Portfolio Holdings Presented by Rating September 30, 2017 Rating: S&P or Moody s (a) %* AAA 13.17% AA+ 11.61% AA 15.20% AA- 13.19% A+ 13.12% A 5.23% A- 12.08% BBB+ 6.26% BBB 1.68% BBB- 2.40% Rating: S&P or Moody s (a) %* BB+ 0.55% BB 0.07% BB- 0.18% B+ 0.12% B 0.12% CCC+ 0.09% CC 0.06% NR 4.87% Total 100.00% (a) Certain investments have been rated by Fitch Ratings, Inc. * Represents percent of total investments. 17