We strive to provide the highest level of client satisfaction, and handle each request with the utmost importance. We expect to respond to each request we receive within one business day of receipt.
Please note that trades cannot be processed via e-mail for security reasons. If your inquiry requires immediate assistance, please call us at
1-800-821-5129 (8:30 a.m.-6:00 p.m. EST, Mon-Fri).
Thank you for contacting Lord Abbett. A member of our staff will contact you between X:XXpm EST and XX:XXpm EST [today OR XX/XX/XXXX]. A confirmation has been sent to your email address.Close
Use this form to give us your feedback or report any problems you experienced finding information on our Website.
* Indicates Required Fields
Thank you for providing feedback.
Q. What is the essence of the Lord Abbett Allocation Strategies?
A. Simply put, the Lord Abbett Allocation Strategies are a suite of portfolios that seek the highest expected returns for a specific investor's risk profile.
Q. Which funds do the Allocation Strategies encompass?
A. The current suite includes four distinct funds: the Diversified Income Strategy Fund, the Balanced Strategy Fund, the Growth & Income Strategy Fund, and the Global Allocation Fund.
Q. What's the goal of each fund?
A. The Diversified Income Strategy Fund is designed for the conservative investor seeking a high level of monthly income and the ability to keep pace with inflation. The Balanced Strategy Fund is designed for the moderately risk-averse investor seeking to strike a balance between growth and income by investing across a broad mix of stocks and bonds. The Growth & Income Strategy Fund seeks lower volatility and higher income than a traditional U.S. equity portfolio, while the Global Allocation Fund aims for lower volatility and higher income than a traditional global equity portfolio.
Q. How does the process work?
A. First, we focus on favored asset classes that historically have exhibited superior long-term return profiles. Second, we devise a strategic allocation that we believe should provide favorable risk-adjusted return over time. Finally, we tactically adjust the portfolio's exposure to take advantage of temporary market opportunities while adhering to established risk parameters.
Q. Can you elaborate on "favored asset classes"?
A. Favored asset classes should play a prominent role in a multi-asset portfolio. For example, each fund will have a mix of U.S. mid cap value stocks, international high-dividend-paying stocks, and U.S. high-yield bonds, although the investment amount allocated to each asset class will vary depending on the risk profile of the strategy.
Q. So, combining different asset classes can lead to synergies?
A. That's part of the overarching philosophy of these funds, whereby investors can benefit from a portfolio that combines favored asset classes with a history of complementing each other in different economic environments—for example, higher-volatility mid cap value stocks and lower-volatility convertible securities. This approach can create the potential for a better risk/return profile than a portfolio using a single-asset-class approach.
Of course, history has shown that there are times when asset classes that previously behaved distinctly converge and move together—as they did in 2008. During these occasions, it may be advantageous to reduce the overall risk level of the portfolio by tactically shifting assets from stocks to bonds.
Q. Doesn't risk also present opportunities?
A. At other times, yes, particularly when markets become excessively pessimistic or optimistic about the prospects for a specific asset class. To take advantage of these changes in market sentiment, we opportunistically adjust our holdings to increase return potential while managing the overall risk parameters of the portfolio.
Q. Can you elaborate on the defined allocation range for each fund?
A. The constraints are as follows: the Diversified Income Strategy normally will have approximately 75–85% of its assets in fixed income; Balanced has to be 40–60% equity; Growth & Income is limited to 60–80% equity; and Global Allocation can have 40–75% in equity (and at least 40% in international equity and fixed income combined).
Q. What drives performance of the Lord Abbett Allocation Strategies?
A. There are three key drivers of performance for these funds: strategic design, strength of the underlying funds, and tactical allocation decisions. During various market conditions, each one of the factors may contribute more or less to the overall performance of the funds. However, we feel that over a full market cycle, each will be a valuable contributor to a fund's competitive risk-adjusted returns.
The value of the underlying funds' investments and the net asset values of the shares of both the funds of funds and the underlying funds will fluctuate in response to various market and economic factors related to the equity and fixed-income markets, as well as to the financial condition and prospects of issuers in which the underlying funds invest. Some of the underlying funds can invest in either high-yield securities, sometimes called junk bonds, or small/emerging growth companies. Investments in these types of securities are subject to greater volatility than either higher-grade securities or more established companies, respectively. Bonds may also be subject to call, credit, liquidity, interest-rate, and general market risks. Stocks and bonds can decline due to adverse issuer, market, regulatory, or economic developments. International markets may be less liquid and can be more volatile than U.S. markets. These factors can affect funds of funds' performance.
Neither diversification nor asset allocation can guarantee a profit or protect against loss in declining markets.
The opinions in the preceding commentary are as of the date of publication and subject to change based on subsequent developments and may not reflect the views of the firm as a whole. This material is not intended to be legal or tax advice and is not to be relied upon as a forecast, or research or investment advice regarding a particular investment or the markets in general, nor is it intended to predict or depict performance of any investment. Investors should not assume that investments in the securities and/or sectors described were or will be profitable. This document is prepared based on information Lord Abbett deems reliable; however, Lord Abbett does not warrant the accuracy or completeness of the information. Investors should consult with a financial advisor prior to making an investment decision.
Investors should carefully consider the investment objectives, risks, charges, and expenses of the Lord Abbett funds. This and other important information is contained in each fund’s summary prospectus and/or prospectus. To obtain a prospectus or summary prospectus on any Lord Abbett mutual fund, contact your investment professional or Lord Abbett Distributor LLC at 888-522-2388 or visit us at www.lordabbett.com. Read the prospectus carefully before you invest.