Founded in 1929, Lord, Abbett & Co., LLC is a private U.S. investment management firm that offers a broad range of equity and fixed income investment opportunities to individual and institutional investors. Unlike other investment companies, Lord Abbett is very closely held with only nine partners, and it focuses primarily on long and actively managed investment portfolios. Lord Abbett offers numerous mutual funds at reasonable costs.
Lord Abbett Growth Leaders Fund Class C
Assets under management (AUM): $2.1 billion
2012-2015 average annual net asset value (NAV) return: 19.04%
Net expense ratio: 1.6%
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 43% allocation within the fund's portfolio. Consumer discretionary stocks have the second-largest position with about 20% allocation. Alphabet is the largest holding of the fund, with about a 7% allocation. The top 10 equity positions account for about 33% of the fund's portfolio.
The Lord Abbett Growth Leaders Fund Class C has earned a five-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 High Yield Fund Class A
AUM: $4.2 billion
2010-2015 average annual NAV return: 5.91%
Net expense ratio: 0.94%
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 90% of the fund's bond holdings have junk status with average ratings concentrated in the upper level of high-yield spectrum. About 80% of the fund's assets are held in high-yield bonds, while the remainder are spread out between equity holdings, bank loans and investment-grade bonds. As of Nov. 30, 2015, the fund had an average duration of 4.62 years and a 30-day SEC yield of 6.02%.
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 bronze analyst rating and five-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: $2.3 billion
2010-2015 average annual NAV return: 4.79%
Net expense ratio: 1%
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 22% of the fund's assets, while fixed income securities have 75% allocation. 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 (20% allocation) and high-yield corporate bonds (37% allocation). The fund has an average duration of 3.68 years and a 30-day SEC yield of 3.69%.
Morningstar has awarded the Lord Abbett Multi-Asset Income Fund Class A with a four-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.
Lord Abbett Intermediate Tax Free Fund Class A
AUM: $3.9 billion
2010-2015 average annual NAV return: 4.83%
Net expense ratio: 0.71%
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. Bonds issued by municipalities in California, New York and Texas have the largest combined allocation of about 42%. As of Nov. 30, 2015, the average duration of the fund's portfolio was 5.48 years and a 30-day SEC yield of 2.44%.
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.