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

 

Retirement Perspectives

Here are several ways to enhance prospects with plan sponsors and other fiduciaries.

This article has been prepared exclusively for use by registered investment advisors and broker dealers. It is not intended for, and should not be used with, plan sponsors, plan participants, or the public in written or oral form or for any other purpose.

As a long-time provider of a 401(k) plan-prospecting tool, we often receive questions about the best ideas for scouting retirement plans. Of course, there is no surefire way to win such business, but there are a number of approaches that can bring an advisor closer to a decision maker, plan sponsor, or fiduciary. Consider the following talking points:

Providing More Fiduciary “Shields”
In an increasingly litigious society, plan sponsors sometimes may be at loggerheads with their participants, so it’s better for them to have certain protective shields.

Think of all the lawsuits that have been filed against plan sponsors over the past few years—such as deposit timing, failure to transmit contributions, breach of fiduciary liability, fees—the list goes on and on. Now ask this question: Even though a plan sponsor is never fully clear of his/her fiduciary liability, wouldn’t it make sense to take as much precaution as possible?

For example, one best practice for a smaller plan sponsor is to submit plan participant withholdings in a timely manner—that is, within seven business days. Doing this could provide a fiduciary “safe harbor” from being sued for deposit-timing issues.

Another best practice for discussion is what the plans are doing to be “404(c) compliant.”1  The Department of Labor (DoL) provides a sample checklist that a plan sponsor should follow to satisfy 404(c) rules. So, if you’re prospecting plan sponsors who claim they are compliant, ask them what they are doing to achieve the proper results. If the plans aren’t compliant, ask why they haven’t considered the benefits afforded by 404(c).

Another example (discussed below) is the qualified default investment alternative (QDIA). A QDIA will provide a layer of protection from participants defaulted into that such account. Also, hiring a 3(21) or 3(38)2 co-fiduciary can reduce liability and protect the plan sponsor as it applies to construction of the investment menu.

Retirement plans lacking some of these shields can be found among public data. On the year-end 5500 report, for example, a plan’s intent to adhere to a 404(c) is indicated by pension code 2F, while the QDIA is pension code 2T. Locating plans that are missing these shields (among others) is a prospecting idea that resonates well. It also can help advisors show plan sponsors the value they can add to their plan.

Reviewing the Investment Menu
One of the most frequently discussed topics within retirement plans concerns the investment menu, or the list of options for participants to build their nest eggs. According to the Plan Sponsor Council of America (PSCA), the average menu has a total of 19 investment options. This includes different asset classes, such as large-, mid-, and small-cap funds, international, fixed-income, and asset-allocation/target-date options, among others.

Advisors should consider asking some of the following questions:

  • Does the plan have a current investment policy statement?
  • Have plan demographics changed over the past few years?
  • How often are the current investment options reviewed?
  • What is the criterion to place a fund on watch/remove and replace an option within the menu.

Although the concept of “set it and forget it” is the path of least resistance, programs such as certain investment lineup screening programs can provide an easy way to screen an overall investment menu, review underperformers, and help plan sponsors tee up potential modifications. Here are a couple of ideas about how to prospect within an investment menu:

Reviewing a Plan’s Target-Date Funds
For more senior investment professionals, it’s hard to recall the retirement plan landscape prior to the Pension Protection Act (PPA) of 2006—the era without target-date funds (for all intents and purposes). The PPA enabled retirement plans to offer a QDIA as a default option within retirement plan menus. Offering a QDIA (such as a target-date fund) as a default option would give the plan sponsor a layer of protection from being sued from a plan participant who neglected to choose his/her own investments.

Target-date funds have since evolved to include a number of different concepts. Lately, many plans have been adopting a best-of-breed strategy, allowing investment menu additions such as target-date funds based on a specific glide-path. For example (using hypothetical numbers), a multi-manager target-date fund might have anywhere from 10–40% in large-cap investment options, anywhere from 5–20% in mid caps, 1–10% in small caps, 5–20% in international exposure, with the rest being allocated to both government and corporate bonds. This presents a “best of breed” concept that a single-fund family target-date provider cannot offer, while also encouraging asset managers and financial advisors to compete for the “sleeve” of the target date, when they will offer the most value.

Which approach is correct? There is no simple answer. The prospecting opportunity lies within reviewing the types of target-date funds within the plan, if any. Is the specific target-date fund a “to-retirement” or “through-retirement” approach? Does the existing range of target dates fit the current demographics of the participant base? What are the allocation(s) to target-date funds? For example, does a 2040 fund with 60% allocated to equities suit the participant base, or would a higher exposure to equities be more appropriate?

Bulking Up a Thin Fixed-Income Menu
According to the PSCA’s analysis, a plan generally will have approximately two fixed-income investment options, one either a cash/stable value option and the other an intermediate-term/core bond option.

Have you ever seen a retirement plan without a core bond option? Unlikely. Looking ahead, there are two key challenges such fixed-income options will face: providing consistency of return (as my colleague Greg Schneider discussed in his article, “How Strong Is Your Core?”) and searching for yield in the current environment.

Given that participants are aging and that IRA rollovers might be scrutinized more in the future, the need for the fixed-income portion to evolve from two options is apparent. So be sure to review a plan’s investment menu in required disclosures for companies with more than 100 eligible employees. Also review the plan’s year-end audit that needs to be conducted, in addition to the 5500 report. The audit provides a deeper look at the plan, including listing the investment menu for the plan and where the dollars are allocated. Such detail can provide insight into how many fixed-income options a plan has (or doesn’t have).

While there is no right answer, best practices suggest that, at the least, a plan must have a minimum number of diversified options. Will money market funds/stable-value funds provide higher yields in the future? Maybe. Given the current yield-starved environment both domestically and globally, discussing the addition of other asset classes such as multi-sector or high yield might be a way to add value. For example, over the last 20 years, the high-yield asset class (as represented by the Credit Suisse High Yield Index) has provided 87% of the upside of the S&P 500® Index, while only providing 54% of the downside, according to Credit Suisse. This might be one approach, but remember: all plan investment decisions are the remit of the plan sponsor’s investment committee, so be sure to check its latest policy statement.

Summary
Many different approaches can be effective to garner retirement plan business. What it really comes down to, though, is two things: plan sponsor education and plan participant education. The question is: can an advisor effectively show value to both groups for the compensation they are to receive? Some of the ideas described above differ from the old ways of prospecting solely on fees, service, and better investments. Reviewing a plan’s 5500 report, showing the plan sponsor new ways to manage and service their plan, analyzing the investment menu, and knowing ways to provide guidance with new regulations is a good step toward gaining access to a retirement plan. 

 

Section 404(c) is part of ERISA law that permits employees to direct the investment of their own retirement accounts. Plan sponsors that indicate they are adhering to the 404(c) rules can potentially get a layer of liability protection.
2 A 3(21) investment fiduciary is a paid professional who provides investment recommendations to the plan sponsor/trustee. The plan sponsor/trustee retains ultimate decision-making authority for the investments and may accept or reject the recommendations. Both share the fiduciary responsibility. By properly appointing a monitoring an authorized 3(38) investment manager, a plan sponsor/trustee is relieved of all fiduciary responsibility for the investment decisions made by the investment professional. (Source: National Institute of Pension Administration website.)

To comply with Treasury Department regulations, we inform you that, unless otherwise expressly indicated, any tax information contained herein is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties that may be imposed under the Internal Revenue Code or any other applicable tax law, or (ii) promoting, marketing, or recommending to another party any transaction, arrangement, or other matter.

The information provided is for general informational purposes only and is not intended to provide legal or tax advice. You should consult your own legal or tax advisor for guidance on regulatory compliance matters. Any examples provided are for informational purposes only and are not intended to be reflective of actual results.

This article may contain assumptions that are “forward-looking statements,” which are based on certain assumptions of future events. Actual events are difficult to predict and may differ from those assumed. There can be no assurance that forward-looking statements will materialize or that actual returns or results will not be materially different from those described here.

The Form 5500, Annual Return/Report of Employee Benefit Plan, is the form used to file an employee benefit plan’s annual information return with the Department of Labor (“DOL”).  5500 reports have pension codes that are aligned to benefits. For example, pension code 2E represents a profit-sharing provision, 2J a 401(k) provision, and so on.

The Credit Suisse High Yield Index is an unmanaged, trader-priced index constructed to mirror the characteristics of the high-yield market. The index includes issues rated BB and below by S&P or Moody’s, with par amounts greater than $75 million.

The S&P 500® Index is widely regarded as the standard for measuring large cap U.S. stock market performance and includes a representative sample of leading companies in leading industries.

Indexes are unmanaged, do not reflect the deduction of fees or expenses, and are not available for direct investment.

A Note about Risk: The value of investments in equity securities will fluctuate in response to general economic conditions and to changes in the prospects of particular companies, including market, liquidity, currency, and political risks. Mid and small cap company stocks tend to be more volatile and may be less liquid than large cap company stocks. Mid and small cap companies typically experience higher risk of failure than large cap companies. Investments in value companies can continue to be undervalued for long periods of time and be more volatile than the stock market in general. These factors can adversely affect Fund performance. No investing strategy can overcome all market volatility or guarantee future results.

TARGET DATE FUNDS. Target date funds are funds with the target date being the approximate date when investors plan to start withdrawing their money. Generally, the asset allocation of each fund will change on an annual basis with the asset allocation becoming more conservative as the fund nears the target retirement date. The principal value of the fund(s) is not guaranteed at any time, including at the target date.  Target-date funds contain varying amounts of stocks and bonds. Over time, the value of these investments will fluctuate and can decrease in value, causing your investment in the target-date fund to lose value as well. Target-date funds, however, are typically designed to be diversified investments.

Diversification does not guarantee a profit or protect against loss in declining markets.

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 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, nor is it intended to predict or depict performance of any investment. Investors should not assume that investments in the securities and/or sectors described were or will be profitable. 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 a financial advisor prior to ma king an investment decision.

ABOUT THE AUTHOR

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