Founded in 1929, Lord, Abbett & Co., LLC is a private U.S. investment management firm based in Jersey City, New Jersey, that offers a broad range of equity and fixed income investment opportunities to individual and institutional investors. Lord Abbett has $194 billion in assets under management, as of September 30, 2019. The firm has 49 partners and 796 employees. It focuses primarily on long and actively managed investment portfolios. Lord Abbett offers 57 mutual funds, at reasonable costs.

Key Takeaways

  • Lord Abbett is a 90-year old private U.S. investment management firm based in New Jersey.
  • Lord Abbett has over $194 billion in assets under management and offers 57 mutual funds.
  • Standout funds include the Growth Leaders Fund Class C, which is primarily made up of equity securities and the High Yield Fund Class A, which is primarily high-yield bonds.
  • Also, the Multi-Asset Income Fund Class A, a fund of other Lord Abbett funds and the Intermediate Tax Free Fund Class A, which invests in investment-grade municipal bonds exempt from federal income tax.

Lord Abbett Growth Leaders Fund Class C

Assets under management (AUM): $3.9 billion

Net expense ratio: 1.66%

The fund has 1-year, 3-year and 5-year returns of 21.18%, 19.58%, and 12.65%, respectively.

The Lord Abbett Growth Leaders Fund Class C seeks capital appreciation by investing in equity securities of U.S. and foreign firms that the fund's manager deems to have above-average growth potential in the long term. While the fund does not restrict its holdings by market capitalization, it tends to focus on large-cap stocks. The fund predominantly focuses on information technology equities, which have about 32% allocation within the fund's portfolio. Consumer cyclical stocks have the second-largest position with about 16.3% allocation. Apple is the largest holding of the fund, with about a 5.7% allocation. The top 10 equity positions account for about 30% of the fund's portfolio.

The Lord Abbett Growth Leaders Fund Class C has earned a three-star overall rating from Morningstar for its strong risk-adjusted returns. The fund has a load fee of 1% and a minimum investment requirement of $1,500.

Lord Abbett offers 57 mutual funds for its investors, as of 2019.

Lord Abbett High Yield Fund Class A

AUM: $7.03 billion

Net expense ratio: 0.90%

The fund has 1-year, 3-year and 5-year returns of 9.37%, 5.67%, and 5.24%, respectively.

The Lord Abbett High Yield Fund Class A seeks current income and capital appreciation by investing in lower-rated debt securities, such as convertible and corporate bonds. The fund may also invest in foreign bonds and municipal bonds from time to time. Over 80% of the fund's bond holdings have junk status with average ratings concentrated in the upper level of the high-yield spectrum. About 80% of the fund's assets are held in high-yield bonds, while the remainder is spread out between equity holdings, bank loans, and investment-grade bonds. As of Nov. 29, 2019, the fund had an average duration of 3.79 years and a 30-day SEC yield of 6.23%.

The Lord Abbett High Yield Fund Class A was able to beat most of its peers within the high-yield bond category and has earned a four-star overall rating from Morningstar. The fund comes with a load fee of 2.25% and requires its investors to contribute at least $1,500.

Lord Abbett Multi-Asset Income Fund Class A

AUM: $1.3 billion

Net expense ratio: 1.17%

The fund has 1-year, 3-year and 5-year returns of 8.50%, 5.49%, and 3.88%, respectively.

The Lord Abbett Multi-Asset Income Fund Class A is considered a fund of funds, holding other Lord Abbett Funds that invest in a wide variety of bonds and domestic and foreign stocks. The fund blends its holdings to gain exposure to growth and value stocks of primarily medium market capitalization. Stocks occupy about 39% of the fund's assets, fixed income securities have 53% allocation and cash nearly 8%. The equity holdings of the fund are split evenly between foreign and domestic stocks. In its bond portfolio, the fund tends to focus on investment-grade bonds and high-yield corporate bonds. The fund has a 30-day SEC yield of 2.32%.

Morningstar has awarded the Lord Abbett Multi-Asset Income Fund Class A with a three-star overall rating in the conservative allocation category. The fund charges a load fee of 2.25% and has a minimum investment requirement of $1,500.

90 years

How long investment management firm Lord Abbett has been in business.

Lord Abbett Intermediate Tax Free Fund Class A

AUM: $4.8 billion

Net expense ratio: 0.71%

The fund has 1-year, 3-year and 5-year returns of 8.35%, 4.62%, and 3.17%, respectively.

The Lord Abbett Intermediate Tax Free Fund Class A invests in investment-grade municipal bonds exempt from federal income tax with intermediate maturity profiles. The fund typically holds bonds with maturities ranging between three and 10 years. The fund has a 30-day SEC yield of 1.47%.

The fund has received a four-star overall rating from Morningstar in the municipal national intermediate category. The fund charges load fees of 2.25% and comes with a minimum investment requirement of $1,000.