LBNVX | Bond Debenture Fund Class R6 | Lord Abbett

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Bond Debenture Fund

Summary

Summary

What is the Bond Debenture Fund?

The Fund seeks to deliver high current income and long-term growth of capital by investing primarily in a variety of fixed income securities and select equity-related securities.

A PIONEER IN MULTI-SECTOR

Over four decades of multi-sector bond investing, emphasizing rigorous credit research.

A FLEXIBLE APPROACH

The flexibility to adjust allocations to take advantage of opportunities as market conditions change.

TIME-TESTED RESULTS

A long track record illustrates performance in many market environments.

 

Yield

Dividend Yield 1 as of 01/14/2022  

w/o sales charge 3.56%

30-Day Standardized Yield 2 as of 12/31/2021  

2.90%

Fund Basicsas of 12/31/2021

Total Net Assets
$28.42 B
Inception Date
06/30/2015
Dividend Frequency
Monthly
Fund Expense Ratio
0.51%
Number of Holdings
1017
 
Inflation Resource Center

Flexible Fixed-Income Solutions for a Number of Market Outcomes

In today's market environment, many are focused on the potential investment implications of rising inflation. While Lord Abbett's experts say they don't think now is the time to make drastic changes to a portfolio, this Reource Center provides thoughtful insights and potential solutions for a number of situation-based outcomes.

Learn More

 

 

Fund Expense Ratio :

0.51%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception
w/o sales charge 3.53% 3.53% 8.31% 6.06% 6.74% -
Lipper Category Avg. Multi-Sector Income Funds 1.92% 1.92% 5.65% 4.26% 4.41% -
Bloomberg U.S. Aggregate Bond Index -1.54% -1.54% 4.79% 3.57% 2.90% -

Fund Expense Ratio :

0.51%

Fund Expense Ratio :

0.51%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception
w/o sales charge 3.53% 3.53% 8.31% 6.06% 6.74% -
Lipper Category Avg. Multi-Sector Income Funds 1.92% 1.92% 5.65% 4.26% 4.41% -
Bloomberg U.S. Aggregate Bond Index -1.54% -1.54% 4.79% 3.57% 2.90% -

Fund Expense Ratio :

0.51%

RELATED CONTENT

Multisector Investing: Key Themes for Today’s Market
November 1, 2021

Lord Abbett experts discuss the current uncertainty around rates and inflation—and the potential appeal of a multisector fixed income strategy in such an environment

Rethinking Risk and Return amid Negative Real Yields
August 23, 2021

Inflation-adjusted U.S. Treasury yields remain below zero. How might investors respond?

Celebrating 50 Years for the Lord Abbett Bond Debenture Fund
April 8, 2021

April 1, 2021 marked the 50th anniversary of the Bond Debenture Fund, a significant achievement for Lord Abbett and a pioneering investment strategy in our industry.

Type Assets
U.S. High Yield Corporate
U.S. Investment Grade Corporate
Equity
Non-U.S. Investment Grade Corporate
CMBS
Bank Loans
Non-U.S. High Yield Corporate
CLO
Sovereign
Municipals
ABS
MBS
Convertibles
Cash
Maturity Assets
Less than 1 year
1-3 years
3-5 years
5-7 years
7-10 years
Greater than 10 years

Credit Quality Distribution as of 12/31/2021 View Portfolio

Rating Assets
AAA
AA
A
BBB
BB
B
<B
Not Rated

INVESTMENT TEAM

Steven F. Rocco
Steven F. Rocco, CFA

Partner & Co-Head of Taxable Fixed Income

20 Years of Industry Experience

Andrew H. O'Brien
Andrew H. O'Brien, CFA

Partner & Portfolio Manager

23 Years of Industry Experience

Kewjin Yuoh
Kewjin Yuoh

Partner & Portfolio Manager

27 Years of Industry Experience

Robert S. Clark
Robert S. Clark, CFA

Portfolio Manager

24 Years of Industry Experience

Christopher Gizzo
Christopher Gizzo, CFA

Managing Director, Portfolio Manager

13 Years of Industry Experience

Robert A. Lee
Robert A. Lee

Partner & Co-Head of Taxable Fixed Income

30 Years of Industry Experience

Supported By 61 Investment Professionals with 16 Years Avg. Industry Experience

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Performance

Performance

Dividend Yield 1 as of 01/14/2022  

w/o sales charge 3.56%

30-Day Standardized Yield 2 as of 12/31/2021  

  Subsidized3 Un-Subsidized4
w/o sales charge 2.90% 2.90%

Fund Expense Ratio :

0.51%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception
w/o sales charge 3.53% 3.53% 8.31% 6.06% 6.74% -
Lipper Category Avg. Multi-Sector Income Funds 1.92% 1.92% 5.65% 4.26% 4.41% -
Bloomberg U.S. Aggregate Bond Index -1.54% -1.54% 4.79% 3.57% 2.90% -

Fund Expense Ratio :

0.51%

Fund Expense Ratio :

0.51%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception
w/o sales charge 3.53% 3.53% 8.31% 6.06% 6.74% -
Lipper Category Avg. Multi-Sector Income Funds 1.92% 1.92% 5.65% 4.26% 4.41% -
Bloomberg U.S. Aggregate Bond Index -1.54% -1.54% 4.79% 3.57% 2.90% -

Fund Expense Ratio :

0.51%

Year Fund Returns Bloomberg U.S. Aggregate Bond Index
2021 3.53% -1.54%
2020 7.91% 7.51%
2019 13.73% 8.72%
2018 -3.56% 0.01%
2017 9.54% 3.54%
2016 12.56% 2.65%
2015 -1.40% 0.55%
2014 4.85% 5.97%
2013 8.26% -2.02%
2012 13.59% 4.22%
2011 4.45% -
2010 13.50% -
2009 35.99% -
2008 -20.07% -
2007 5.81% -
2006 10.39% -
2005 2.02% -
2004 9.06% -
Year Q1 Q2 Q3 Q4 Yearly Returns
2021 0.90% 2.25% 0.18% 0.18% 3.53%
2020 -11.78% 10.07% 4.57% 6.27% 7.91%
2019 6.92% 3.68% 0.68% 1.89% 13.73%
2018 -0.96% 0.04% 2.32% -4.87% -3.56%
2017 2.87% 2.04% 2.62% 1.70% 9.54%
2016 1.58% 4.54% 4.71% 1.24% 12.56%
2015 3.48% -0.37% -3.60% -0.79% -1.40%
2014 2.95% 2.62% -1.48% 0.73% 4.85%
2013 3.23% -1.26% 2.68% 3.44% 8.26%
2012 5.78% 0.22% 4.58% 2.45% 13.59%
2011 4.34% 0.97% -6.37% 5.90% 4.45%
2010 3.96% -1.09% 6.63% 3.53% 13.50%
2009 2.53% 12.96% 11.53% 5.26% 35.99%
2008 -2.81% 1.55% -7.73% -12.23% -20.07%
2007 2.63% 1.34% 2.02% -0.27% 5.81%
2006 2.84% -0.41% 3.67% 3.98% 10.39%
2005 -1.76% 1.66% 1.63% 0.51% 2.02%
2004 - - - 4.41% 9.06%

NAV Historical Prices

Date Net Asset Value

Portfolio

Portfolio

Type Assets
U.S. High Yield Corporate
U.S. Investment Grade Corporate
Equity
Non-U.S. Investment Grade Corporate
CMBS
Bank Loans
Non-U.S. High Yield Corporate
CLO
Sovereign
Municipals
ABS
MBS
Convertibles
Cash
Rating Assets
Less than 1 year
1-3 years
3-5 years
5-7 years
7-10 years
Greater than 10 years

Credit Quality Distribution as of 12/31/2021

Rating Assets
AAA
AA
A
BBB
BB
B
<B
Not Rated

Portfolio Positioning as of 09/30/2021

  • The Fund holds meaningful positions in the energy, retail, consumer services and leisure sectors. Looking forward, we expect to continue building on the Fund’s position in the energy sector in the high yield space that remains supported by solid growth and a positive earnings outlook with low projected default rates. The Fund’s overweight position continued to be supported by strong fundamentals in energy companies that have been able to generate cashflow on a more consistent basis and have more robust balance sheet management. The sector also continued to be supported by a positive outlook in commodity prices, as Delta variant fears subsided and expectations for global economic growth rose. As such, WTI Crude futures regained momentum during the month and finished just above $75 per barrel. More recently, we refocused on adding in the area of BB-rated rising star candidates. We also continued to look for ESG-friendly opportunities within energy, specifically with respect to low-carbon and alternative energy sources.
  • We also started adding back to leisure as Delta variant cases began to trend in the right direction, lifting the weight on the sector as a result. Separately, we remained constructive in basic industry and retail sectors. As headwinds caused by the Delta variant begin to abate, we favor the long-term picture for both sectors. However, we reduced some of the Fund’s metals and mining exposure as we believe that energy-related commodities and consumer-oriented names that fall in the reopening theme have more relative value. Additionally, our caution is fueled by the potential slowdown in growth expectations in China due to regulatory pressures. Regarding retail, we believe its post-pandemic recovery has yet to be fully realized, and the consumer is still strong, boosted by continued labor market recovery and record high savings rates. That being said, we must be mindful of slowdowns in the economy and the inevitable reduction of fiscal and monetary stimulus on the horizon. The most recent release of the Purchasing Managers’ Index (PMI), which indicates trends in U.S. manufacturing, showed a softening of demand from its peaks seen earlier in the year and supply chain disruptions hampering production.
  • We reduced the Fund’s exposure to Emerging Markets developed markets this quarter. Emerging Market securities responded poorly to rising U.S. rates and a stronger U.S. dollar, as both are typically headwinds for the asset class as investors shift capital away from EM to the U.S. amid a more attractive relative yield. Also, our conviction in the energy sector led us to focus on U.S. securities as the opportunity set for energy investments is more robust domestically compared to internationally. However, we are constructive on the Fund’s exposure to leisure, retail, and other related sectors in Europe because of improvement in economic outlook as Delta variant risks subside and borders open back up.
  • We had reduced some of the Fund’s floating rate exposure over the month of August. At the time, some of the propellant that we had around rising rates and the reflationary trade had moderated. It was a more docile rate environment relative to 1Q21, as the Fed’s recent statement reduced the de-anchored high inflation scenario probability in our view. We have since started to add back floating rate exposure towards the tail end of September. We believe that some of the propellant around rising rates is coming back, as the Fed signaled faster-than-expected Quantitative Easing (QE) tapering and assumed a generally hawkish tone in its latest meeting.
  • Beyond corporate bonds, the Fund maintained allocations to common stock and bank loans, and more modest allocations to asset-backed securities (ABS), CMBS, sovereign debt, and municipals. We believe select exposures to these sectors offer attractive risk-reward opportunities, potential portfolio diversification benefits and avenues for liquidity.
  • We continue to have a broadly constructive view on U.S. high yield credit. Year-to-date, high yield spread tightening has more than fully offset the move higher in benchmark risk-free yields. Although U.S. Treasury yields may continue rising on the back of a taper by the Fed, we believe that such a taper would be consistent with strong economic momentum which could offset any related financial conditions tightening. High yield spreads should offset that rise, as economic health is ultimately the arbiter of credit spreads.
  • We expect the trailing 12-month default rate to continue to fall below 1% through year end after peaking just above 6% in December. Furthermore, the U.S. distress ratio is at the lowest levels in 10 years, sitting at just 2.2% of the high yield market. Given the inverse relationship between recovery levels and the default rate, we expect default losses to account for a minimal drag on high yield index performance for the remainder of 2021 and through 2022. While we expect another record year of issuance in the high yield market, we believe technicals will remain favorable as we see up to 10% of the face value of the high yield market transitioning to investment grade over the coming 18 months, and activity remaining skewed to refinancing. Year-to-date through the end of September, demand has held up strongly, outstripping supply by approximately $1 billion.
  • We believe the current economic landscape is a favorable environment for high yield issuers and our Fund’s positioning currently reflects this risk posture. We have heavy exposure to the energy sector that should benefit from a strong outlook on commodities and supply and demand technicals on oil prices. The Fund also continues to be favorable on cyclical sectors including basic industry and retail, as we believe that COVID-19 and its impacts have reached another apex, which bodes well for a value or reopening rotation after those factors have lagged for six months. Moving forward, we favor lower quality credit tiers as some of our caution around the potential risks of the Delta variant and its implications for future economic growth subsided.

Portfolio Details as of 12/31/2021

Total Net Assets
$28.42 B
Number of Issues
1017
Average Coupon
4.51%
Average Life
9.36 Years
Average Maturity
10.81 Years
Average Effective Duration
5.44 Years

Dividends & Cap Gains

Dividends & Cap Gains

Dividend Payments

For
YTD Dividends Paidas of 01/14/2022
$0
Dividend Frequency
Monthly (Daily Accrual)
Record Date Ex-Dividend Date Reinvest & Payable Date Dividend Reinvest Price
Daily Daily 12/31/2021 $0.02431 $8.33
Daily Daily 11/30/2021 $0.02602 $8.38
Daily Daily 10/31/2021 $0.02478 $8.45
Daily Daily 09/30/2021 $0.02493 $8.42
Daily Daily 08/31/2021 $0.02503 $8.50
Daily Daily 07/31/2021 $0.02509 $8.48
Daily Daily 06/30/2021 $0.02591 $8.48
Daily Daily 05/31/2021 $0.02656 $8.43
Daily Daily 04/30/2021 $0.02534 $8.44
Daily Daily 03/31/2021 $0.02494 $8.37
Daily Daily 02/28/2021 $0.02584 $8.44
Daily Daily 01/31/2021 $0.02450 $8.38

Upcoming Dividend Payment Dates

Record Date Ex-Dividend Date Reinvest & Payable Date
Daily Daily 01/31/2022
Daily Daily 02/28/2022
Daily Daily 03/31/2022
Daily Daily 04/30/2022
Daily Daily 05/31/2022
Daily Daily 06/30/2022
Daily Daily 07/31/2022
Daily Daily 08/31/2022
Daily Daily 09/30/2022
Daily Daily 10/31/2022
Daily Daily 11/30/2022
Daily Daily 12/31/2022

Capital Gains Distributions

For
Record Date Reinvest & Payable Date Long-term Short-term * Total Reinvest Price
12/16/2021 12/17/2021 - $0.0298 $0.0298 $8.30

Upcoming Capital Gain Distribution

Record Date Ex-Dividend Date
07/27/2022 07/28/2022

Fees & Expenses

Fees & Expenses

Expense Ratioas of 12/31/2021

0.51%

Fund Documents

Fund Documents

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Portfolio Holdings 1Q
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The Bloomberg U.S. Aggregate Bond Index represents securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. Total return comprises price appreciation/depreciation and income as a percentage of the original investment. 

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