Image alt tag

Error!

X

There was a problem contacting the server. Please try after sometime.

Sorry, we are unable to process your request.

Error!

X

We're sorry, but the Insights and Intelligence Tool is temporarily unavailable

If this problem persists, or if you need immediate assistance, please contact Customer Service at 1-888-522-2388.

Error!

X

We're sorry, but the Literature Center checkout function is temporarily unavailable.

If this problem persists, or if you need immediate assistance, please contact Customer Service at 1-888-522-2388.

Tracked Funds

You have 0 funds on your mutual fund watch list.

Begin by selecting funds to create a personalized watch list.

(as of 12/05/2015)

Pending Orders

You have 0 items in your cart.

Subscribe and order forms, fact sheets, presentations, and other documents that can help advisers grow their business.

A verification Email Has Been Sent

Close

An email verification email has been sent to .
Follow the instructions to complete the email validation process.

I have not received my verification email

Check your SPAM mailbox and make sure that twelcome@lordabbett.com is allowed to send you mail.

I'm still having trouble

If you're still having trouble verifying your email address. feel free to contact us.

1-888-522-2388
clientservices@lordabbett.com


OK

We're sorry. We found no record of the email address you provided.

Close

Register For a LordAbbett.com Account
Using Your Email Address.

  • Registered Financial Advisors gain access to:
  • Our data mining tool, Insight & Intelligence
  • Best in-class practice management content
  • Educational events, videos and podcasts.
  • The Lord Abbett Review - Subscribe now!

Registered but Having Problems?

If you believe you are registered and are having problems verifying your email address, feel free to contact us.

1-888-522-2388 clientservices@lordabbett.com

Terms & Condition

X

These Terms of Use ("Terms of Use") are made between the undersigned user ("you") and Lord, Abbett & Co. ("we" or "us"). They become effective on the date that you electronically execute these Terms of Use ("Effective Date").

A. You are a successful financial consultant that markets securities, including the Lord Abbett Family of Funds;

B. We have developed the Lord Abbett Intelligence System (the "Intelligence System"), a state of the art information resource that we make available to a limited community of broker/dealers through the Internet at a secure Web site (the "LAIS Site"); and

C. We wish to provide access to the Intelligence System to you as an information tool responsive to the demands of your successful business pursuant to these Terms of Use. Accordingly, you and we, intending to be legally bound, hereby agree as follows:]

1. Overview. · Scope. These Terms of Use (which we may amend from time to time) govern your use of the Intelligence System. · Revisions; Changes. We may amend these Terms of Use at any time by posting amended Terms of Use ("Amended Terms of Use") on the LAIS Site. Any Amended Terms of Use will become effective immediately upon posting. Your use of the Intelligence System after any Amended Terms of Use become effective will be deemed to constitute your acceptance of those Amended Terms of Use.We may modify or discontinue the Intelligence System at any time, temporarily or permanently, with or without notice to you. Purpose of the Intelligence System. The Intelligence System is intended to be an information resource that you may use to contribute to your business research. The Intelligence System is for broker/dealer use only; it is not to be used with the public in oral, written or electronic form. The information on the Intelligence System and LAIS Site is for your information only and is neither the tax, legal or investment advice of Lord Abbett or its third-party sources nor their recommendation to purchase or sell any security.

2. Your Privileges. · Personal Use. Your use of the Intelligence System is a nontransferable privilege granted by us to you and that we may deny, suspend or revoke at any time, with or without cause or notice. · Access to and Use of the Intelligence System. The User ID and password (together, an "Access ID") issued by us to you (as subsequently changed by you from time to time) is for your exclusive access to and use of the Intelligence System. You will: (a) be responsible for the security and use of your Access ID, (b) not disclose your Access ID to anyone and (c) not permit anyone to use your Access ID. Any access or use of the Intelligence System through the use of your Access ID will be deemed to be your actions, for which you will be responsible. · Required Technology. You must provide, at your own cost and expense, the equipment and services necessary to access and use the Intelligence System. At any time, we may change the supporting technology and services necessary to use the Intelligence System. · Availability. We make no guarantee that you will be able to access the Intelligence System at any given time or that your access will be uninterrupted, error-free or free from unauthorized security breaches.

3. Rights in Data. Our use of information collected from you will be in accordance with our Privacy Policy posted on the LAIS Site. Our compliance with our Privacy Policy will survive any termination of these Terms of Use or of your use of the Intelligence System.

4. Your Conduct in the Use of the Intelligence System. You may access, search, view and store a personal copy of the information contained on the LAIS Site for your use as a broker/dealer. Any other use by you of the Intelligence System and the information contained on the LAIS Site these Terms of Use is strictly prohibited. Without limiting the preceding sentence, you will not: · Engage in or permit any reproduction, copying, translation, modification, adaptation, creation of derivative works from, distribution, transmission, transfer, republication, compilation or decompilation, reverse engineering, display, removal or deletion of the Intelligence System, any portion thereof, or any data, content or information provided by us or any of our third-party sources in any form, media or technology now existing or hereafter developed, that is not specifically authorized under these Terms of Use.

· Remove, obscure or alter any notice, disclaimer or other disclosure affixed to or contained within the Intelligence System, including any copyright notice, trademark and other proprietary rights notices and any legal notices regarding the data, content or information provided through the Intelligence System.

· Create a hyperlink to, frame or use framing techniques to enclose any information found anywhere on the LAIS Site without our express prior written consent.

· Impersonate any person, or falsely state or otherwise misrepresent his or her affiliation with any person in connection with any use of the Intelligence System.

· Breach or attempt to breach the security of the Intelligence System or any network, servers, data, or computers or other hardware relating to or used in connection with the Intelligence System; nor (b) use or distribute through the Intelligence System software or other tools or devices designed to interfere with or compromise the privacy, security or use of the Intelligence System by others or the operations or assets of any person.

· Violate any applicable law, including, without limitation, any state federal securities laws. 5. Your Representations and Warranties. You hereby represent and warrant to us, for our benefit, as of the time of these Terms of Use and for so long as you continue to use the Intelligence System, that (a) you are, and will continue to be, in compliance with these Terms of Use and any applicable laws and (b) you are authorized to provide to us the information we collect, as described in our Privacy Policy.

6. Disclaimer of Warranties.

· General Disclaimers.

THE INTELLIGENCE SYSTEM, THE LAIS SITE AND ALL DATA, INFORMATION AND CONTENT ON THE LAIS SITE ARE PROVIDED "AS IS" AND “AS AVAILABLE” AND WITHOUT ANY REPRESENTATIONS OR WARRANTIES OF ANY KIND. WITHOUT LIMITING THE PRECEDING SENTENCE, LORD ABBETT, ITS AFFILIATES, AGENTS, THIRD-PARTY SUPPLIERS AND LICENSORS, AND THEIR RESPECTIVE EMPLOYEES, CONTRACTORS, DIRECTORS, OFFICERS AND SHAREHOLDERS (COLLECTIVELY, THE “LORD ABBETT GROUP”) EXPRESSLY DISCLAIM ALL WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY, INCLUDING THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, AND NONINFRINGEMENT. YOU EXPRESSLY AGREE THAT YOUR USE OF THE LAIS SITE, THE INTELLIGENCE SYSTEM, AND THE DATA, INFORMATION AND CONTENT PRESENTED THERE ARE AT YOUR SOLE RISK AND THAT THE LORD ABBETT GROUP WILL NOT BE RESPONSIBLE FOR ANY (A) ERRORS OR INACCURACIES IN THE DATA, CONTENT AND INFORMATION ON THE LAIS SITE AND THE INTELLIGENCE SYSTEM OR (B) ANY TERMINATION, SUSPENSION, INTERRUPTION OF SERVICES, OR DELAYS IN THE OPERATION OF THE LAIS SITE OR THE INTELLIGENCE SYSTEM.

· Disclaimer Regarding Investment Research.

THE INTELLIGENCE SYSTEM INCORPORATES DATA, CONTENT AND INFORMATION FROM VARIOUS SOURCES THAT WE BELIEVE TO BE ACCURATE AND RELIABLE. HOWEVER, THE LORD ABBETT GROUP MAKES NO CLAIMS, REPRESENTATIONS OR WARRANTIES AS TO THE ACCURACY, TIMELINESS, COMPLETENESS OR TRUTHFULNESS OF SUCH DATA, CONTENT AND INFORMATION. YOU EXPRESSLY AGREE THAT YOU ARE RESPONSIBLE FOR INDEPENDENTLY VERIFYING YOUR INVESTMENT RESEARCH PRIOR TO FORMING YOUR INVESTMENT DECISIONS OR RENDERING INVESTMENT ADVICE. THE LORD ABBETT GROUP WILL NOT BE LIABLE FOR ANY INVESTMENT DECISION MADE BY YOU OR ANY OTHER PERSON BASED UPON THE DATA, CONTENT AND INFORMATION PROVIDED THROUGH THE INTELLIGENCE SYSTEM OR ON THE LAIS SITE.

· Survival.

THIS SECTION 6 SHALL SURVIVE ANY TERMINATION OF THESE TERMS OF USE OR YOUR USE OF THE INTELLIGENCE SYSTEM..

7. Limitations on Liability.

NONE OF THE MEMBERS OF THE LORD ABBETT GROUP WILL BE LIABLE TO YOU OR ANY OTHER PERSON FOR ANY DIRECT, INDIRECT, INCIDENTAL, CONSEQUENTIAL, PUNITIVE, SPECIAL OR EXEMPLARY DAMAGES (INCLUDING LOSS OF PROFITS, LOSS OF USE, TRANSACTION LOSSES, OPPORTUNITY COSTS, LOSS OF DATA, OR INTERRUPTION OF BUSINESS) RESULTING FROM, ARISING OUT OF OR IN ANY WAY RELATING TO THE INTELLIGENCE SYSTEM, THE LAIS SITE OR YOUR USE THEREOF, EVEN IF THE LORD ABBETT GROUP HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THIS SECTION 7 WILL SURVIVE ANY TERMINATION OF THESE TERMS OF USE OR YOUR USE OF THE INTELLIGENCE SYSTEM.

8. Miscellaneous Provisions.

· Governing Law. This Agreement will governed by and construed in accordance with the laws of the State of New York, without giving effect to applicable conflicts of law principles.

THE UNIFORM COMPUTER INFORMATION TRANSACTIONS ACT OR ANY VERSION THEREOF, ADOPTED BY ANY STATE, IN ANY FORM ("UCITA") WILL NOT APPLY TO THESE TERMS OF USE. TO THE EXTENT THAT UCITA IS APPLICABLE, THE PARTIES HEREBY AGREE TO OPT OUT OF THE APPLICABILITY OF UCITA PURSUANT TO THE OPT-OUT PROVISION(S) CONTAINED THEREIN.

The Intelligence System is not intended to be used by consumers, nor are the consumer protection laws of any jurisdiction intended to apply to the Intelligence System. You agree to initiate and maintain any action, suit or proceeding relating to these Terms of Use or arising out of the use of the Intelligence System exclusively in the courts, state and federal, located in or having jurisdiction over New York County, New York.

YOU HEREBY CONSENT TO THE PERSONAL JURISDICTION AND VENUE OF THE COURTS, STATE AND FEDERAL, LOCATED IN OR HAVING JURISDICTION OVER NEW YORK COUNTY, NEW YORK. YOU AGREE THAT YOU WILL NOT OBJECT TO A PROCEEDING BROUGHT IN YOUR LOCAL JURISDICTION TO ENFORCE AN ORDER OR JUDGMENT OBTAINED IN NEW YORK.

· Relationship of Parties. The parties to these Terms of Use are independent contractors and nothing in these Terms of Use will be construed as creating an employment relationship, joint venture, partnership, agency or fiduciary relationship between the parties.

· Notice. All notices provided under these Terms of Use will be in writing and will be deemed effective: (a) when delivered personally, (b) when received by electronic delivery, (c) one business day after deposit with a commercial overnight carrier specifying next day delivery, with written verification of receipt, or (d) three business days after having been sent by registered or certified mail, return receipt requested. We will only accept notices from you in English and by conventional mail addressed to: General Counsel Lord, Abbett & Co. 90 Hudson Street Jersey City, N.J. 07302-3973 We may give you notice by conventional mail or electronic mail addressed to the last mail or electronic mail address transmitted by you to us.

· Third-Party Beneficiaries. The members of the Lord Abbett Group are third-party beneficiaries of the rights and benefits provided to us under these Terms of Use. You understand and agree that any right or benefit available to us or any member of the Lord Abbett Group hereunder will also be deemed to accrue to the benefit of, and may be exercised directly by, any member of the Lord Abbett Group to the extent applicable.

· Survival. This Section 8 will survive any termination of these Terms of Use or your use of the Intelligence System. The undersigned hereby signs these Terms of Use. By electronically signing and clicking "Accept" below, these Terms of Use will be legally binding on me. To sign these Terms of Use, confirm your full name and enter your User ID and Password (as your electronic signature) in the fields indicated below and click the “I Accept” button.

Reset Your Password

Financial Professionals*

Your password must be a minimum of characters.

Confirmation Message

Your LordAbbett.com password was successully updated. This page will be refreshed after 3 seconds.

OK

 

Economic Insights

Here’s a look at how Great Britain’s vote to leave the European Union could affect both parties to the divorce. 

 

In Brief

  • While investors contend with the immediate market impact of Great Britain’s “Brexit” vote, longer-term issues remain.
  • One major issue is the procedure by which the separation will come about. Early indications point to contentious trade negotiations between the European Union and the United Kingdom.
  • Another concern is the prospect that U.K. companies such as auto manufacturers, banks, and technology firms will move key operations to Europe. In particular, London’s standing as a global financial hub may be diminished.
  • How could this play out in the respective economies? The loss of jobs and tax revenue in the United Kingdom would generate the opposite and positive effect on the European Union, to the extent that companies could choose to relocate.
  • The key takeaway: The tenor of trade negations between the United Kingdom and the European Union over the next two years will substantially influence the economic destiny of both areas.

 

“Brexit”: Is it the end of the Western socioeconomic order as we know it, or rather is it only a non-event of local dimensions? Both forecasts seemed borne out in the weeks following Great Britain’s historic vote on June 23 to leave the European Union (EU). The two trading days that followed hinted at a kind of global-market Armageddon. But those days were followed by recovery in many markets, back to pre-vote levels—so you can’t blame investors for scratching their collective head as to what it all means. 

Still, no matter the brief reactions in the market, long-term uncertainty remains. Have hopes for global monetary and fiscal stimulus offset fears of Brexit contagion and resultant slower economic growth? Such a stalemate likely will not last long. EU members already are expressing impatience with Britain’s slow approach toward invoking article 50 of the Lisbon treaty to start the two-year exit process. Meanwhile, companies headquartered in Great Britain are evaluating other locations. 

While there may be only a modest impact on the broader EU economy, and even less impact on U.S. growth, the United Kingdom seems destined for economic slowdown. As inhabitants of a fictional kingdom in Game of Thrones might say, “Winter is coming.”

Fairy Tale
Economic scenarios that spin out of Brexit span the limits of human imagination. One possible outcome is a second vote on the matter. Voting again—now that the potential self-inflicted economic pain of Brexit is more obvious—may be the hope of those that marked their ballots “Remain,” but this option seems politically unacceptable (and when Theresa May does become prime minister, as appears likely, that option as she said is completely not an option). An exit without the enactment of tariffs and penalties is another hopeful scenario. This, however, likely represents a highly unlikely “fairy tale” ending to the United Kingdom’s upcoming negotiations with the EU.

A third alternative would be to negotiate a position similar to that which Norway engages, whereby the United Kingdom retains access to the EU market, but is not a voting member. This sounds ideal, until Britain reads the fine print that requires full freedom of movement of people (immigration), economic payments to the European Union, and acceptance of certain regulations from Brussels (taxation without representation). Immigration and self-regulation were the key drivers of the Brexit camp’s victory. Negotiating a position similar to Norway’s would appear to involve acceptance of the specific conditions that produced the Brexit decision in the first place.

The most likely scenario, then, is already being framed by words and actions that pit the United Kingdom and its objectives against the European Union. Comments from officials in Germany, France, and Italy suggest trade negotiations between the European Union and the United Kingdom may be more contentious than conciliatory. EU members may feel that a strong response to Brexit will dissuade other countries from considering similar action. The New York Times summarized the message to the United Kingdom from a meeting of EU leaders: “Bolting [the union] will carry a heavy price.”

While we wait for trade negotiations to unfold, companies in the United Kingdom are evaluating their alternatives. Wireless phone giant Vodafone, for example, has indicated concern about the potential difficulty to transact business easily unless headquartered in an EU country. Other concerned companies include auto manufacturers, banks, and technology firms, especially tech start-ups. These three important sectors may feel forced to relocate to assure unfettered access to the European market.

“Passport” Problems
In the auto industry, about 80% of the vehicles produced in Britain are exported, with about 58% exported to other European countries, according to the Society of Motor Manufacturers and Traders, a U.K. trade group. The Financial Times reports that 75–80% of the Toyota and Honda cars produced in the United Kingdom are sent to other countries in the EU. If current favorable trade terms are replaced with a 10% European tariff, some auto companies may be forced to relocate to an EU country to remain profitable. The investment, jobs, and taxes associated with such a move could damage U.K. growth, while boosting that of the European Union.

Within the banking industry, most major U.S. banks have large operations in the United Kingdom, employing tens of thousands of people. Losing their “passporting” rights to operate in the European Union would curtail or eliminate their ability to sell financial products and services to EU clients. French president François Hollande’s suggestion that London would have to give up its role in processing euro currency transactions provoked further concerns that EU negotiations could undermine the U.K. financial sector.

Another key segment of the U.K. economy that could be compromised as a result of Brexit is the growing community of technology start-ups. More than 40% of Europe’s start-ups valued at US$1 billion or more are located in the United Kingdom, according to the Financial Times. Post-Brexit, these firms’ ability to attract talent and access the European market could be compromised. Volatility of the pound and questions regarding London’s ability to remain the Continent’s premier financial center create concerns about the ability to raise capital. Start-ups may find a more hospitable environment in a number of cities that would welcome the economic infusion and new growth optimism associated with this sector. 

What’s Next?
Autos, banking, and technology are but three sectors that could transport their businesses to another European location if Brexit produces unfavorable trade terms for the United Kingdom. The loss of jobs, corporate tax base, individual tax receipts, and related real estate support in the United Kingdom would generate the opposite positive effects on the European Union, to the extent that companies might choose to relocate. Even the inflationary pressures associated with such a shift would be welcomed by the European Union.

The tenor of trade negations between the United Kingdom and the European Union over the next two years will significantly influence the economic destiny of both areas. Favorable trade terms would minimize the economic impact, but it could encourage political factions elsewhere in Europe to renegotiate aspects of the EU treaty or secede. Alternatively, unfavorable trade terms could trigger an exodus of companies from the United Kingdom, hurting the U.K. economy, but possibly benefiting another country in the European Union. Brexit has, figuratively speaking, tossed up the economic chips into the air—what remains to be seen is how trade negotiations over the next two years will determine where those chips fall.   

Meanwhile, the United States seems in a rather enviable position. Without a particular dog in that fight, the United States, with its economy driven largely by domestic consumption, may avoid any adverse economic impact as a result of U.K./EU trade negotiations. It may, however, have an interesting opportunity to negotiate trade terms with the United Kingdom before the European Union finalizes a new treaty, creating a favorable environment between the United States and the United Kingdom. What those advantages might be, and how the consequences of Brexit will affect the United States, will be the subject of our next column. 

 

ABOUT THE AUTHOR

Lord Abbett's Blog

videoOur blog, The Investment Conversation, features timely commentary and analysis from Lord Abbett experts. Join the conversation.

Please confirm your literature shipping address

Please review the address information below and make any necessary changes.

All literature orders will be shipped to the address that you enter below. This information can be edited at any time.

Current Literature Shipping Address

* Required field