LACFX | Convertible Fund Class A | Lord Abbett

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Convertible Fund

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Summary

Summary

What is the Convertible Fund?

The Fund seeks to deliver current income and the opportunity for capital appreciation by investing primarily in convertible securities.

Fund Basicsas of 02/28/2023

Total Net Assets
$765.56 M
Inception Date
06/30/2003
Dividend Frequency
Quarterly
Fund Gross Expense Ratio
1.03%
Fund Net Expense Ratio
1.03%
Number of Holdings
84
Minimum Initial Investment
$1,500+

Yield

12-Month Dividend Yield 1 as of 03/23/2023  

w/o sales charge 2.51%
w/ sales charge 2.46%

30-Day Standardized Yield 2 as of 02/28/2023  

2.38%

Fund Expense Ratio :

Gross 1.03%

Net 1.03%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 06/30/2003
w/o sales charge 2.07% -14.06% 7.70% 9.03% 9.23% 7.28%
Lipper Category Avg. Convertible Securities Funds 2.60% -9.91% 8.00% 8.24% 8.41% -
ICE BofA All Convertible Index 4.45% -9.07% 9.77% 9.85% 10.02% 8.33%
w/ sales charge -0.24% -16.00% 6.89% 8.53% 8.98% 7.15%

Fund Expense Ratio :

Gross 1.03%

Net 1.03%

Fund Expense Ratio :

Gross 1.03%

Net 1.03%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 06/30/2003
w/o sales charge -23.36% -23.36% 8.25% 8.83% 9.39% 7.23%
Lipper Category Avg. Convertible Securities Funds -17.88% -17.88% 6.88% 8.10% 8.59% -
ICE BofA All Convertible Index -18.63% -18.63% 8.16% 9.31% 10.02% 8.16%
w/ sales charge -25.08% -25.08% 7.43% 8.34% 9.14% 7.10%

Fund Expense Ratio :

Gross 1.03%

Net 1.03%

RELATED CONTENT

Using Convertible Bonds to Help Weather Volatility
September 27, 2021

Convertible bonds can potentially provide downside protection during stock-market downdrafts. Here’s how.

Rating Assets
Convertible Bonds
Convertible Preferred Stock
Common Stock
Other
Cash
Rating Assets
S.T & N.O.A
1 - 5 YEARS
6 - 10 YEARS
11 - 20 YEARS
21 - 30 YEARS
31 + YEARS
PFD(EQUITY)

Credit Quality Distribution as of 02/28/2023

Rating Assets
A
BBB
BB
CCC
Not Rated

INVESTMENT TEAM

Alan R. Kurtz
Alan R. Kurtz

Managing Director, Portfolio Manager

22 Years of Industry Experience

Jeremy I. Lehmann
Jeremy I. Lehmann, CFA

Portfolio Manager

10 Years of Industry Experience

Supported By 84 Investment Professionals with 17 Years Avg. Industry Experience

Your Representative

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Performance

Performance

12-Month Dividend Yield 1 as of 03/23/2023  

w/o sales charge 2.51%
w/ sales charge 2.46%

30-Day Standardized Yield 2 as of 02/28/2023  

  Subsidized3 Un-Subsidized4
w/o sales charge 2.38% 2.38%

Fund Expense Ratio :

Gross 1.03%

Net 1.03%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 06/30/2003
w/o sales charge 2.07% -14.06% 7.70% 9.03% 9.23% 7.28%
Lipper Category Avg. Convertible Securities Funds 2.60% -9.91% 8.00% 8.24% 8.41% -
ICE BofA All Convertible Index 4.45% -9.07% 9.77% 9.85% 10.02% 8.33%
w/ sales charge -0.24% -16.00% 6.89% 8.53% 8.98% 7.15%

Fund Expense Ratio :

Gross 1.03%

Net 1.03%

Fund Expense Ratio :

Gross 1.03%

Net 1.03%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 06/30/2003
w/o sales charge -23.36% -23.36% 8.25% 8.83% 9.39% 7.23%
Lipper Category Avg. Convertible Securities Funds -17.88% -17.88% 6.88% 8.10% 8.59% -
ICE BofA All Convertible Index -18.63% -18.63% 8.16% 9.31% 10.02% 8.16%
w/ sales charge -25.08% -25.08% 7.43% 8.34% 9.14% 7.10%

Fund Expense Ratio :

Gross 1.03%

Net 1.03%

Year Fund Returns ICE BofA All Convertible Index
2022 -23.36% -18.63%
2021 0.96% 6.34%
2020 63.95% 46.22%
2019 24.76% 23.15%
2018 -3.54% 0.15%
2017 16.56% 13.70%
2016 12.46% 10.43%
2015 -8.10% -2.99%
2014 5.98% 9.44%
2013 25.91% 24.92%
2012 12.18% -
2011 -9.00% -
2010 14.66% -
2009 35.44% -
2008 -31.62% -
2007 9.08% -
2006 9.03% -
2005 3.79% -
2004 7.24% -
2003 10.76% -
Year Q1 Q2 Q3 Q4 Yearly Returns
2023 - - - - 0.25%
2022 -7.71% -16.15% -0.30% -0.68% -23.36%
2021 1.45% -0.32% 0.13% -0.30% 0.96%
2020 -7.88% 27.13% 16.20% 20.47% 63.95%
2019 11.29% 4.70% -0.41% 7.51% 24.76%
2018 1.26% 2.54% 4.98% -11.50% -3.54%
2017 6.45% 2.68% 4.07% 2.46% 16.56%
2016 -1.46% 3.29% 7.85% 2.44% 12.46%
2015 2.45% -0.57% -9.63% -0.17% -8.10%
2014 2.12% 3.86% -1.29% 1.22% 5.98%
2013 6.59% 3.04% 7.83% 6.32% 25.91%
2012 9.39% -4.06% 4.68% 2.11% 12.18%
2011 4.65% -1.35% -14.61% 3.23% -9.00%
2010 3.25% -7.29% 11.08% 7.83% 14.66%
2009 1.88% 11.34% 12.83% 5.82% 35.44%
2008 -7.36% 3.48% -16.39% -14.68% -31.62%
2007 2.31% 3.98% 2.20% 0.32% 9.08%
2006 6.00% -2.19% 0.60% 4.53% 9.03%
2005 -2.15% 0.95% 5.12% -0.05% 3.79%
2004 2.49% -1.23% -1.59% 7.66% 7.24%
2003 - - 1.97% 8.63% 10.76%

Growth of $10,000 as of 07/31/2021

NAV HISTORICAL PRICES

Date Net Asset Value

Portfolio

Portfolio

Rating Assets
Convertible Bonds
Convertible Preferred Stock
Common Stock
Other
Cash
Rating Assets
S.T & N.O.A
1 - 5 YEARS
6 - 10 YEARS
11 - 20 YEARS
21 - 30 YEARS
31 + YEARS
PFD(EQUITY)

Credit Quality Distribution as of 02/28/2023

Rating Assets
A
BBB
BB
CCC
Not Rated

Portfolio Positioning
as of 12/31/2022

  • Convertible bonds retreated with other risk assets over the course of 2022 as rising benchmark yields and worries about a recession in 2023 negatively impacted the asset class given its composition is skewed towards growth, innovation, and early cycle, smaller capitalization companies.  The silver lining to this painful repricing is that the asset class is much more “credit-like” than it has been for most of the period following the Great Financial Crisis.
  • Given the composition of the asset class, continued progress in areas such as technology, innovation, and healthcare, along with revived secular investor demand for these exposures, we believe flows and valuations should be supportive. The result of some “busted” (priced below $80) convertible bond names today could also draw interest from credit focused investors given embedded equity optionality upside. We also believe the more “credit like” composition of the asset class today should also continue to draw interest from the traditional high yield investor base. Our work shows that growth factors tend to do well when macro growth is harder to find. Given the overall market delta, we believe investors may migrate to convertibles for a defensive allocation while awaiting some macro certainty. History shows evidence of strong forward returns at the current market delta.
  • Finally, we see potential for positive event risk in the convertibles market.  In 2022, there was a limited amount of strategic merger and acquisition activity given economic uncertainty and tightening financial conditions. A rise from today’s depressed levels could be supportive as we view many of the issuers in this market as potential beneficiaries. We also expect a further pickup in liability management as issuers themselves take advantage of depressed valuations, which could allow for organic deleveraging.
  • Looking ahead, we are being mindful of the risk of a tail outcome or hard landing in the US economy.  We believe a growing probability of a “hard landing recession” would increase the assessment of credit stress in the market.  While nearly half of “busted” convert issuers have no debt other than their convertible bond, the fear of a protracted rise in the default rate could keep a lid on investor sentiment.  Nonetheless, we expect the default rate in the convertibles market to remain well short of that of the traditional credit markets.  After being underweight portfolio delta relative to benchmarks, we have recently begun to add back some secular growth exposure. Overall, we maintain a barbell approach, remaining underweight the middle segment of the convertible market, characterized by a delta between 40 and 80, and overweight the tails below 40 delta and above 80 delta.

PORTFOLIO DETAILS as of 02/28/2023

Total Net Assets
$765.56 M
Number of Issues
84
Average Coupon
1.2%
Average Maturity
2.93 Years
Average Effective Duration
0.01 Years

Dividends & Cap Gains

Dividends & Cap Gains

Dividend Payments

For
YTD Dividends Paidas of 03/23/2023
$0
Dividend Frequency
Quarterly
Record Date Ex-Dividend Date Reinvest & Payable Date Dividend Reinvest Price
12/27/2022 12/28/2022 12/28/2022 $0.07960 $11.98
12/19/2022 12/20/2022 12/20/2022 $0.08650 $12.24
09/28/2022 09/29/2022 09/29/2022 $0.06320 $12.32
06/28/2022 06/29/2022 06/29/2022 $0.03920 $12.52
03/29/2022 03/30/2022 03/30/2022 $0.03570 $14.92

Upcoming Dividend Payment Dates

This section lists all anticipated income and Capital Gain distribution dates and any actual distributions are subject to adequacy of earnings and must be approved by the Board of Directors/Trustees. Please note that dates are subject to change.

Record Date Ex-Dividend Date Reinvest & Payable Date
03/29/2023 03/30/2023 03/30/2023
06/28/2023 06/29/2023 06/29/2023
09/27/2023 09/28/2023 09/28/2023
12/26/2023 12/27/2023 12/27/2023

Capital Gains Distributions

For
Record Date Reinvest & Payable Date Long-term Short-term * Total Reinvest Price
12/16/2021 12/17/2021 $1.6293 $1.0924 $2.7217 $15.90

Fees & Expenses

Fees & Expenses

Sales Charge Schedule as of 03/23/2023

  Sales Charge Dealer's Concession Prices at Breakpoint
Less than $100,000 2.25% 2.00% $12.39
$100,000 to $249,999 1.75% 1.50% $12.33
$250,000 to $499,999 1.25% 1.00% $12.26
$500,000 to $999,999 0.00% 1.00% $12.11
$1,000,000 to $5,000,000 0.00% 1.00% $12.11

Expense Ratioas of 02/28/2023

Fund Documents

Fund Documents

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Portfolio Holdings 1Q
Publish Date:11/03/2015
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Portfolio Holdings 3Q
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Statutory Prospectus
Publish Date:11/03/2015
SAI
Publish Date:11/03/2015
Annual Report
Publish Date:11/03/2015
Semi-Annual Report
Publish Date:11/03/2015
Fact Sheet
Publish Date:11/03/2015
Fact Sheet
Publish Date:11/03/2015
Fact Sheet
Publish Date:11/03/2015
Commentary
Publish Date:11/03/2015

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The ICE BofA Merrill Lynch All Convertibles Index contains issues that have a greater than $50 million aggregate market value. The issues are U.S. dollar-denominated, sold into the U.S. market and publicly traded in the United States.

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