Putting Cash to Work | Ultra Short & Short Duration Income | Lord Abbett

 

Featured Funds

I-Share: LUBYX

Ultra Short Bond Fund

The Fund seeks to deliver current income consistent with the preservation of capital by investing in a broad range of investment grade ultra-short fixed income and money market securities with a weighted average duration of less than one year.
 

I-Share: LLDYX

Short Duration Income Fund

The Fund seeks to deliver a high level of current income consistent with the preservation of capital by investing in a variety of short maturity debt securities including, corporate bonds, U.S. government securities, and mortgage- and other asset-backed debt securities.
 

Steepening on the Short End Has Created Opportunity

Investors looking to take a step out of cash are finally seeing attractive opportunities

Bar Chart

Source: Bloomberg and Lord Abbett. Yield to worst refers to the lesser of a bond’s (a) yield-to-maturity or (b) the lowest yield-to-call calculated on each scheduled call date. Past performance is not a reliable indicator or guarantee of future results.

Clients Are Re-Thinking How They Manage Cash

Core Cash

Time Horizon: 3-12 months

Use: Periodic cash needs

Objective: Capital preservation, incremental yield

Risk: Low volatility

Ultra Short Bond Fund

 

I-Share Fund Characteristics
Average Yield to Maturity
4.03%
Average Price
$98.56
Average Effective Duration
0.56 years
Expense Ratio
0.28%
Data as of 06/30/2022. The fund is fully liquid. To obtain a prospectus, you can click here.

Strategic Cash

Time Horizon: over 12 months

Use: Not intended for specific expenditures

Objective: Total returns, incremental yield

Risk: Conservative

Short Duration Income Fund

 

I-Share Fund Characteristics
Average Yield to Maturity
5.24%
Average Price
$96.93
Average Effective Duration
2.31 years
Expense Ratio
0.38%
Data as of 06/30/2022.
To obtain a prospectus, you can click here.

Lord Abbett Short Duration Funds

Offering investors a range of solutions leveraging our short duration investment capabilities

Bar Chart

The chart represents Lord Abbett’s assessment of the relative level of investment risk and potential investment return among the Lord Abbett taxable fixed-income funds listed in the chart. The information is intended to graphically depict Lord Abbett’s overall assessment of relative risk and potential return. It is not intended to depict any specific risk measurement, such as standard deviation, for any particular product, nor is it to depict the performance of any particular product. In addition, the graphic above does not depict different types of investment risk and does not reflect that a portion of a portfolio may be invested in securities that have higher investment risk relative to the overall portfolio. For example, a portfolio may be depicted as having relatively lower risk because it had less exposure to interest rate changes; however, the portfolio may hold higher yielding securities that have relatively higher credit risk.

Additional Insights

Insight

Will the Fed’s “Front-Loaded” Rate Moves Tame Inflation?

The U.S. Federal Reserve delivered a second consecutive 75 basis point rate hike on July 27 as it seeks to contain “elevated” price pressures.

Insight

Fixed Income: Finding Opportunities in the Quality and Maturity Curves

We think an “up-in-quality” bias in corporate bonds, along with capturing spread further out on the maturity curve, may serve investors well in the current environment.

Insight

Managing Your Cash: Alternatives to Today’s Low Savings Rates

Rates on traditional savings vehicles like savings accounts and money market funds have not kept pace with increases in the fed funds rate.

Ask about our Short Duration Funds.

Financial professionals: 888‑522‑2388.

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Ultra Short Bond Fund Note about Risk: A Note about Risk: The Fund is subject to the general risks associated with investing in debt securities, including market, credit, liquidity, and interest rate risk. The value of an investment in the Fund will change as interest rates fluctuate in response to market movements. When interest rates rise, the prices of debt securities are likely to decline, and when interest rates fall, the prices of debt securities tend to rise. Debt securities are subject to credit risk, which is the risk that the issuer will fail to make timely payments of interest and principal to the Fund. The Fund may invest in foreign or emerging market securities, which may be adversely affected by economic, political, or regulatory factors and subject to currency volatility and greater liquidity risk. The Fund may invest in derivatives, which are subject to greater liquidity, leverage, and counterparty risk. Although the Fund may invest in money market securities, this is not a money market fund. These factors can affect Fund performance. As it is a newly organized fund, the Fund’s performance at this time is very limited. The Fund's performance achieved during its initial period of investment operation may not be replicated over longer periods and may not be indicative of how the Fund will perform in the future. Past performance is no guarantee of future results.

Short Duration Income Fund Note about Risk:  The Fund is subject to the general risks associated with investing in debt securities, including market, credit, liquidity, and interest rate risk. The value of an investment will change as interest rates fluctuate and in response to market movements. When interest rates fall, the prices of debt securities tend to rise, and when interest rates rise, the prices of debt securities are likely to decline. Debt securities are subject to credit risk, which is the risk that the issuer will fail to make timely payments of interest and principal to the Fund. The Fund may invest in high yield, lower-rated debt securities, sometimes called junk bonds and may involve greater risks than higher rated debt securities. These securities carry increased risks of price volatility, illiquidity, and the possibility of default in the timely payment of interest and principal. The Fund may invest in foreign or emerging market securities, which may be adversely affected by economic, political, or regulatory factors and subject to currency volatility and greater liquidity risk. The Fund may invest in derivatives, which are subject to greater liquidity, leverage, and counterparty risk. These factors can affect Fund performance. Past performance is no guarantee of future results.

Diversification does not protect against losses in a declining market.

Morningstar Information:

Morningstar, Inc. ©2022. All rights reserved. The information contained herein is the proprietary information of Morningstar, Inc., may not be copied or redistributed for any purpose and may only be used for non-commercial, personal purposes. The information contained herein is not represented or warranted to be accurate, correct, complete or timely. Morningstar, Inc., shall not be responsible for investment decisions, damages, or other losses resulting from the use of this information. Past performance is no guarantee of future performance. Morningstar, Inc. has not granted consent for it to be considered or deemed an “expert”under the Securities Act of 1933.