Principles of Portfolio Construction: Lord Abbett International Opportunities Fund
A Note about Risk: The Fund invests primarily in foreign small and mid cap company stocks, which tend to be more volatile and can be less liquid than foreign or U.S. large cap company stocks. Small and mid cap companies may also have more limited product lines, markets, or financial resources and typically experience a higher risk of failure than large cap companies. In addition, investments in foreign and derivative securities may present increased market, liquidity, currency, political, informational, and other risks. These factors can affect Fund performance.
Additional Risks to Consider: Investing in international securities generally poses greater risk than investing in domestic securities, including greater price fluctuations and higher transaction costs. Special risks are inherent to international investing, including those related to currency fluctuations and foreign, political, and economic events. With respect to certain foreign countries, there is a possibility of nationalization, expropriation or confiscatory taxation, imposition of withholding or other taxes, and political or social instability that could affect investments in those countries. The securities markets of emerging countries tend to be less liquid, especially subject to greater price volatility, have a smaller market capitalization and less government regulation, and may not be subject to as extensive and frequent accounting, financial, and other reporting requirements as securities issued in more developed countries. Further, investing in the securities of issuers located in certain emerging countries may present a greater risk of loss resulting from problems in security registration and custody or substantial economic or political disruptions. Foreign currency exchange rates may fluctuate significantly over short periods of time. They are generally determined by supply and demand in the foreign exchange markets and relative merits of investments in different countries, actual or perceived changes in interest rates, and other complex factors. Currency exchange rates can also be affected unpredictably by intervention (or the failure to intervene) by U.S. or foreign governments or central banks, or by currency controls or political developments. No investing strategy can overcome all market volatility or guarantee future results.
Diversification does not guarantee a profit or protect against loss in declining markets.
The fund's portfolio is actively managed and may change significantly over time.
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 being provided for educational and informational purposes only and 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. 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 their appropriate tax, legal, and financial advisors with respect to individual circumstances and all applicable federal, state, and local tax laws.