Sustainable Mandate Products

 

Sustainable Mandate Products

This is a Marketing Communication.

We develop new products at the intersection of investor needs and our firm’s core competencies. Our focus on ESG and sustainability is reflected in our approach to developing relevant, high-quality investment solutions.  In 2020 we launched our first sustainable mandate product, the Lord Abbett Climate Focused Bond Fund, available to U.S. investors through a mutual fund and non-U.S. investors in a UCITS fund. More recently, we introduced the Lord Abbett Sustainable Municipal Bond Fund, another thematic investment solution offered to U.S. investors through a mutual fund. 

The Climate Focused Bond Fund strategy focuses on five major themes:

Clean Energy: Our clean energy investments are typically concentrated in the renewable power industry, which includes wind, solar, and hydro power. We will consider a wide range of renewable energy companies globally, including utilities, power generation, and companies that develop technology for the renewable sector.

Energy Efficiency: Issuers in this space include energy metering and semiconductor companies that provide solutions aimed at reducing the energy usage of appliances and vehicles.

Water: Our exposure in this sector is largely focused on infrastructure management and filtration solutions. We believe water management solutions will be crucial to address climate and environmental issues in the coming years.

Low Carbon Transportation: Our investments in this segment of the market include electric and hydrogen-powered vehicles as well as low carbon mass transportation.

Other Environmental: Our strategy invests in recycling, waste management, and circular economy-related issuers. Furthermore, we will invest in Green Bonds, which are issued specifically to fund projects such as electric vehicle charging stations, pollution reduction programs, and renewable energy.

Fund Risks to Consider: The Funds are subject to the general risks and considerations associated with investing in debt securities. Among these is credit risk, which is the risk that a counterparty or an issuer of a Fund asset will fail to meet its payment obligations, and interest-rate risk, which is the risk that as interest rates rise, bond prices may fall. The Funds are subject to the risk that their climate-focused investment strategy may select or exclude securities of certain issuers for reasons other than investment performance considerations which may negatively affect their performance relative to unconstrained peers. Certain climate-focused investments may be dependent on government policies and subsidies, which are subject to change or elimination. 

The Funds may substantially invest in high yield securities. High yield securities typically pay a higher level of income but generally involve greater credit risk and sensitivity to economic developments than investment-grade debt securities. Impairment of the value of underlying assets of mortgage-backed and asset-backed securities may result in a reduction in the value of the security and a financial loss to the Fund. The use of financial derivative instruments (FDI) may create leverage, leading to greater fluctuations in assets as well as potentially resulting in gains or losses that are greater than the amount originally invested in FDI. A portion of the income derived from the Sustainable Municipal Bond Fund’s portfolio may be subject to the alternative minimum tax. Any capital gains realized may be subject to taxation. Federal, state, and local taxes may apply. There is a risk that a bond issued as tax-exempt may be reclassified by the IRS as taxable, creating taxable rather than tax-exempt income. Investment in non-U.S. markets including emerging markets may expose the Climate Focused Bond Fund to more social, political, regulatory, and currency risks than securities in developed markets. For assets denominated in a currency other than U.S. dollars, changes in currency-exchange rates may reduce or increase the returns an investor might expect to receive independent of the performance of such assets. Please refer to each Fund’s prospectus, and the Climate Focused Bond UCITS Fund’s KIID, for more detailed risk information.

Climate Focused Bond

Strategy Goal

Seeks to deliver total return by investing in the securities of issuers we believe have, or will have, a positive impact on the climate.

Vehicles Offered

Sustainable Municipal Bond

Strategy Goal

Seeks to deliver a high level of income exempt from federal taxation by investing primarily in intermediate-term investment grade municipal bonds.

US Financial Advisors

We help advisors, plan sponsors, and committees meet the needs of clients.


 

US Institutions and Consultants

We offer a range of Institutional investment strategies—each supported by a dedicated service team committed to delivering an exceptional client experience.

arrow_forward

Global Strategies for non-US Clients

We offer a range of products that provide non-U.S. resident investors and non-U.S. institutions with access to select Lord Abbett investment strategies.
 

 

Sustainable Mandate Products

This is a Marketing Communication.

We develop new products at the intersection of investor needs and our firm’s core competencies. Our focus on ESG and sustainability is reflected in our approach to developing relevant, high-quality investment solutions.  In 2020 we launched our first sustainable mandate product, the Lord Abbett Climate Focused Bond Fund, available to U.S. investors through a mutual fund and non-U.S. investors in a UCITS fund. More recently, we introduced the Lord Abbett Sustainable Municipal Bond Fund, another thematic investment solution offered to U.S. investors through a mutual fund. 

The Climate Focused Bond Fund strategy focuses on five major themes:

Clean Energy: Our clean energy investments are typically concentrated in the renewable power industry, which includes wind, solar, and hydro power. We will consider a wide range of renewable energy companies globally, including utilities, power generation, and companies that develop technology for the renewable sector.

Energy Efficiency: Issuers in this space include energy metering and semiconductor companies that provide solutions aimed at reducing the energy usage of appliances and vehicles.

Water: Our exposure in this sector is largely focused on infrastructure management and filtration solutions. We believe water management solutions will be crucial to address climate and environmental issues in the coming years.

Low Carbon Transportation: Our investments in this segment of the market include electric and hydrogen-powered vehicles as well as low carbon mass transportation.

Other Environmental: Our strategy invests in recycling, waste management, and circular economy-related issuers. Furthermore, we will invest in Green Bonds, which are issued specifically to fund projects such as electric vehicle charging stations, pollution reduction programs, and renewable energy.

Fund Risks to Consider: The Funds are subject to the general risks and considerations associated with investing in debt securities. Among these is credit risk, which is the risk that a counterparty or an issuer of a Fund asset will fail to meet its payment obligations, and interest-rate risk, which is the risk that as interest rates rise, bond prices may fall. The Funds are subject to the risk that their climate-focused investment strategy may select or exclude securities of certain issuers for reasons other than investment performance considerations which may negatively affect their performance relative to unconstrained peers. Certain climate-focused investments may be dependent on government policies and subsidies, which are subject to change or elimination. 

The Funds may substantially invest in high yield securities. High yield securities typically pay a higher level of income but generally involve greater credit risk and sensitivity to economic developments than investment-grade debt securities. Impairment of the value of underlying assets of mortgage-backed and asset-backed securities may result in a reduction in the value of the security and a financial loss to the Fund. The use of financial derivative instruments (FDI) may create leverage, leading to greater fluctuations in assets as well as potentially resulting in gains or losses that are greater than the amount originally invested in FDI. A portion of the income derived from the Sustainable Municipal Bond Fund’s portfolio may be subject to the alternative minimum tax. Any capital gains realized may be subject to taxation. Federal, state, and local taxes may apply. There is a risk that a bond issued as tax-exempt may be reclassified by the IRS as taxable, creating taxable rather than tax-exempt income. Investment in non-U.S. markets including emerging markets may expose the Climate Focused Bond Fund to more social, political, regulatory, and currency risks than securities in developed markets. For assets denominated in a currency other than U.S. dollars, changes in currency-exchange rates may reduce or increase the returns an investor might expect to receive independent of the performance of such assets. Please refer to each Fund’s prospectus, and the Climate Focused Bond UCITS Fund’s KIID, for more detailed risk information.

Climate Focused Bond

Strategy Goal

Seeks to deliver total return by investing in the securities of issuers we believe have, or will have, a positive impact on the climate.

Vehicles Offered

Sustainable Municipal Bond

Strategy Goal

Seeks to deliver a high level of income exempt from federal taxation by investing primarily in intermediate-term investment grade municipal bonds.

US Financial Advisors

We help advisors, plan sponsors, and committees meet the needs of clients.


 

US Institutions and Consultants

We offer a range of Institutional investment strategies—each supported by a dedicated service team committed to delivering an exceptional client experience.

arrow_forward

Global Strategies for non-US Clients

We offer a range of products that provide non-U.S. resident investors and non-U.S. institutions with access to select Lord Abbett investment strategies.