LHYAX | High Yield Fund Class A | Lord Abbett

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High Yield Fund

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Summary

Summary

What is the High Yield Fund?

The Fund seeks to deliver current income and the opportunity for capital appreciation by investing primarily in high yield corporate bonds.
 

A HERITAGE OF HIGH YIELD

Brings a 40+ year history of high-yield investing, focused on fundamental, bottom-up credit research.

AN OPPORTUNISTIC APPROACH

Provides the flexibility to adjust to the market environment and take advantage of opportunities across the credit spectrum.

STRONG TRACK RECORD

Has offered a track record of strong performance versus peers in up and down markets, demonstrating the strength of this active approach as a core high-yield holding over a full market cycle.

Yield

Average Yield to Maturity as of 02/29/2024

8.39%

30-Day Standardized Yield 1 as of 02/29/2024  

6.96%

Fund Basicsas of 02/29/2024

Total Net Assets
$3.81 B
Inception Date
12/31/1998
Dividend Frequency
Monthly
Fund Gross Expense Ratio
0.90%
Fund Net Expense Ratio
0.90%
Number of Holdings
681
Minimum Initial Investment
$1,500+

Fund Expense Ratio :

Gross 0.90%

Net 0.90%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 12/31/1998
w/o sales charge 0.55% 9.59% -0.06% 2.79% 3.68% 5.93%
Lipper Category Avg. High Yield Funds 0.39% 9.98% 1.56% 3.62% 3.48% -
ICE BofA U.S. High Yield Constrained Index 0.32% 11.05% 1.91% 4.00% 4.27% 6.20%
w/ sales charge -1.78% 7.15% -0.80% 2.31% 3.45% 5.83%

Fund Expense Ratio :

Gross 0.90%

Net 0.90%

Fund Expense Ratio :

Gross 0.90%

Net 0.90%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 12/31/1998
w/o sales charge 10.46% 10.46% 0.37% 3.99% 3.90% 5.94%
Lipper Category Avg. High Yield Funds 12.03% 12.03% 1.72% 4.76% 3.70% -
ICE BofA U.S. High Yield Constrained Index 13.55% 13.55% 2.05% 5.22% 4.52% 6.23%
w/ sales charge 7.98% 7.98% -0.38% 3.51% 3.66% 5.85%

Fund Expense Ratio :

Gross 0.90%

Net 0.90%

Type Assets
High Yield Bonds
Bank Loans
Equity
Convertibles
Investment Grade Bonds
Cash
Maturity Assets
Less than 1 year
1-3 years
3-5 years
5-7 years
7-10 years
Greater than 10 years

Credit Quality Distribution as of 02/29/2024 View Portfolio

Rating Assets
BBB
BB
B
<B
Not Rated

INVESTMENT TEAM

Steven F. Rocco
Steven F. Rocco, CFA

Partner & Co-Head of Taxable Fixed Income

22 Years of Industry Experience

Robert A. Lee
Robert A. Lee

Partner & Co-Head of Taxable Fixed Income

32 Years of Industry Experience

Christopher Gizzo
Christopher Gizzo, CFA

Partner, Deputy Director of Leveraged Credit

15 Years of Industry Experience

Karen  J. Gunnerson
Karen J. Gunnerson

Portfolio Manager

13 Years of Industry Experience

Supported By 82 Investment Professionals with 18 Years Avg. Industry Experience

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Performance

Performance

Average Yield to Maturity as of 02/29/2024

8.39%

30-Day Standardized Yield 1 as of 02/29/2024  

  Subsidized2 Un-Subsidized3
w/o sales charge 6.96% 6.96%

Fund Expense Ratio :

Gross 0.90%

Net 0.90%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 12/31/1998
w/o sales charge 0.55% 9.59% -0.06% 2.79% 3.68% 5.93%
Lipper Category Avg. High Yield Funds 0.39% 9.98% 1.56% 3.62% 3.48% -
ICE BofA U.S. High Yield Constrained Index 0.32% 11.05% 1.91% 4.00% 4.27% 6.20%
w/ sales charge -1.78% 7.15% -0.80% 2.31% 3.45% 5.83%

Fund Expense Ratio :

Gross 0.90%

Net 0.90%

Fund Expense Ratio :

Gross 0.90%

Net 0.90%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 12/31/1998
w/o sales charge 10.46% 10.46% 0.37% 3.99% 3.90% 5.94%
Lipper Category Avg. High Yield Funds 12.03% 12.03% 1.72% 4.76% 3.70% -
ICE BofA U.S. High Yield Constrained Index 13.55% 13.55% 2.05% 5.22% 4.52% 6.23%
w/ sales charge 7.98% 7.98% -0.38% 3.51% 3.66% 5.85%

Fund Expense Ratio :

Gross 0.90%

Net 0.90%

Year Fund Returns ICE BofA U.S. High Yield Constrained Index
2023 10.46% 13.55%
2022 -13.75% -11.16%
2021 6.15% 5.35%
2020 4.49% 6.07%
2019 15.07% 14.41%
2018 -5.15% -2.27%
2017 8.50% 7.48%
2016 15.84% 17.49%
2015 -2.26% -4.61%
2014 3.46% 2.51%
2013 9.69% -
2012 16.50% -
2011 3.15% -
2010 14.31% -
2009 50.51% -
2008 -23.42% -
2007 2.43% -
2006 9.94% -
2005 1.15% -
2004 10.42% -
Year Q1 Q2 Q3 Q4
2024 - - - -
2023 2.69% 1.15% -0.44% 6.82%
2022 -5.43% -10.72% -1.48% 3.69%
2021 1.73% 3.11% 0.63% 0.57%
2020 -16.65% 10.72% 5.69% 7.13%
2019 7.50% 3.77% 0.28% 2.86%
2018 -1.07% -0.04% 2.54% -6.47%
2017 2.82% 1.98% 2.45% 1.00%
2016 2.01% 5.52% 5.46% 2.05%
2015 3.05% 0.86% -4.23% -1.81%
2014 2.92% 3.38% -1.83% -0.95%
2013 3.97% -1.03% 2.51% 3.99%
2012 6.63% 0.36% 5.06% 3.61%
2011 3.82% 1.07% -7.02% 5.73%
2010 4.93% -0.92% 6.33% 3.40%
2009 5.95% 17.32% 14.23% 6.01%
2008 -3.43% 1.99% -7.81% -15.68%
2007 2.98% 0.17% 0.48% -1.17%
2006 2.57% 0.01% 2.80% 4.27%
2005 -1.74% 1.49% 0.87% 0.56%
2004 1.07% -0.32% 4.34% 5.04%
2003 4.06% 8.25% 2.40% 5.41%
2002 1.51% -3.59% -3.78% 6.10%
2001 5.14% -1.67% -3.99% 6.15%
2000 -1.66% 0.99% 0.31% -2.65%
1999 3.43% -0.11% -0.81% 3.99%

Growth of $10,000 as of 02/29/2024

NAV Historical Prices

Date Net Asset Value

Portfolio

Portfolio

Rating Assets
High Yield Bonds
Bank Loans
Equity
Convertibles
Investment Grade Bonds
Cash
Rating Assets
Less than 1 year
1-3 years
3-5 years
5-7 years
7-10 years
Greater than 10 years

Credit Quality Distribution as of 02/29/2024

Rating Assets
BBB
BB
B
<B
Not Rated

Portfolio Positioning as of 12/31/2023

  • We continued to invest in shorter duration high yield credits that offer high carry. The risk rally in the final months of the year led high yield spreads to meaningfully compress and reach their tightest levels since April 2022. While we believe there is still modest room for spreads to move lower, we acknowledge that valuations are relatively tight, and we continue to be more focused on sourcing investments that offer higher income with more limited duration exposure. We see value in the new issue high yield market as a strong source of carry given higher coupons and continue to actively participate in select primary issues.
  • We added to the Fund’s allocation in lower-rated credits. We increased the Fund’s exposure to CCC credit throughout the period which we viewed as offering better relative value compared to higher-rated high yield bonds. We viewed that economic data in the U.S. such as lower inflation continued to support lower-rated tiers compared to higher-rated BBs which had relatively tight valuations. The CCC additions over the quarter were across various sectors such as Telecommunications and Media that demonstrated resilient performance, particularly in issuers where we had been meaningfully underweight. We have continued to monetize positions in BBs as a source of funds for these trades, targeting bonds with tight valuations or offering low coupons. We also continue to prioritize liquidity given market uncertainty.
  • We reduced Energy exposure in favor of higher beta sectors. Although we continue to be constructive in the Energy space given the sector’s fundamental strength and improvement in balance sheet management, we reduced exposure in December given continued softness in WTI Crude prices which dropped below $70 for the first time since 2021. However, this allocation change has not altered the Fund’s top overweights or underweights. As of the quarter-end, the top sector overweight positions in the Fund included Basic Industry, Energy and Transportation. Fund underweights continued to be Healthcare, Media and Services, albeit more modest than in prior quarters.
  • We view high yield as an opportunity to capture high-quality carry. Yields, which have come down modestly following a strong quarter for high yield, are still near the highest levels seen in the last decade. We remain constructive in high yield credit considering the overall resilience of the U.S. macroeconomy. Inflation may remain above the Fed's target, which could potentially cause elevated market volatility in the first half of 2024. Yet, the probability of more policy hikes continues to be low, which should translate into a meaningful tailwind for leveraged credit markets. Additionally, the default outlook for 2024 is expected to be manageable and similar to 2023. Despite the presence of higher policy rates compared to the last several years, high yield bond issuers' balance sheets have remained robust, and we believe that the corporate sector is expected to maintain financial discipline, with possible benefits from strategic mergers and acquisitions by higher-rated companies. Looking ahead, we are focused on maintaining a cyclical approach in the Fund, with emphasis on commodities, consumer cyclicals, and sectors benefiting from lower financing rates.

Portfolio Details as of 02/29/2024

Total Net Assets
$3.81 B
Average Effective Duration
3.37 Years
Average Maturity
5.1 Years
Number of Issues
681
Average Yield to Maturity
8.39%

Dividends & Cap Gains

Dividends & Cap Gains

Dividend Payments

Dividend Payments

For
YTD Dividends Paidas of 03/27/2024
$0.07481
Dividend Frequency
Monthly (Daily Accrual)
Record Date Ex-Dividend Date Reinvest & Payable Date Dividend Reinvest Price
Daily Daily 02/29/2024 $0.03858 $6.28
Daily Daily 01/31/2024 $0.03623 $6.30

Upcoming Dividend Payment Dates

Record Date Ex-Dividend Date Reinvest & Payable Date
Daily Daily 03/31/2024
Daily Daily 04/30/2024
Daily Daily 05/31/2024
Daily Daily 06/30/2024
Daily Daily 07/31/2024
Daily Daily 08/31/2024
Daily Daily 09/30/2024
Daily Daily 10/31/2024
Daily Daily 11/30/2024
Daily Daily 12/31/2024

Capital Gains Distributions

For
Record Date Reinvest & Payable Date Long-term Short-term * Total Reinvest Price
12/16/2021 12/17/2021 - $0.0100 $0.0100 $7.45

Fees & Expenses

Fees & Expenses

Sales Charge Schedule as of 03/27/2024

  Sales Charge Dealer's Concession Prices at Breakpoint
Less than $100,000 2.25% 2.00% $6.48
$100,000 to $249,999 1.75% 1.50% $6.44
$250,000 to $499,999 1.25% 1.00% $6.41
Greater than $500,000 0.00% 1.00% $6.33

Expense Ratioas of 02/29/2024

Fund Gross Expense Ratio Fund Net Expense Ratio
0.90% 0.90%

Fund Documents

Fund Documents

0Documents selected
Portfolio Holdings 1Q
Publish Date:11/03/2015
Portfolio Holdings 3Q
Publish Date:11/03/2015
Summary Prospectus
Publish Date:11/03/2015
Statutory Prospectus
Publish Date:11/03/2015
SAI
Publish Date:11/03/2015
Annual Report
Publish Date:11/03/2015
Semi-Annual Report
Publish Date:11/03/2015
Fact Sheet
Publish Date:11/03/2015
Commentary
Publish Date:11/03/2015

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The ICE BofA Merrill Lynch U.S. High Yield Constrained Index is a capitalization-weighted index of all US dollar denominated below investment grade corporate debt publicly issued in the US domestic market. Qualifying securities must have a below investment grade rating (based on an average of Moody’s, S&P and Fitch), at least 18 months to final maturity at the time of issuance, at least one year remaining term to final maturity as of the rebalancing date, a fixed coupon schedule and a minimum amount outstanding of $100 million. The index caps individual issuer at 2%. Index constituents are capitalization-weighted, based on their current amount outstanding, provided the total allocation to an individual issuer does not exceed 2%. Issuers that exceed the limit are reduced to 2% and the face value of each of their bonds is adjusted on a pro-rata basis. The face values of bonds of all other issuers that fall below the 2% cap are increased on a pro-rata basis. In the event there are fewer than 50 issuers in the Index, each is equally weighted and the face values of their respective bonds are increased or decreased on a pro-rata basis.

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