LFROX | Floating Rate Fund Class F3 | Lord Abbett

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Floating Rate Fund

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Summary

Summary

What is the Floating Rate Fund?

The Fund seeks to deliver a high level of current income by investing primarily in a variety of below investment grade loans.

 

HISTORY OF CREDIT RESEARCH

Brings a 45-year heritage of high-yield credit investing, based on rigorous, fundamental credit research.

ATTRACTIVE INCOME & LOW EXPENSES

Has provided attractive income and lower expenses relative to its Morningstar peer group category average.

ATTRACTIVE RETURN FOR RISK

Has offered a track record of strong performance versus peers in up and down markets, demonstrating the strength of this active approach as a core bank loan holding over a full market cycle.

Yield

Average Yield to Maturity as of 01/31/2024

8.75%

30-Day Standardized Yield 1 as of 01/31/2024  

8.92%

Fund Basicsas of 01/31/2024

Total Net Assets
$4.87 B
Inception Date
04/05/2017
Dividend Frequency
Monthly
Fund Gross Expense Ratio
0.53%
Fund Net Expense Ratio
0.53%
Number of Holdings
564

Fund Expense Ratio :

Gross 0.53%

Net 0.53%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 12/31/2007
w/o sales charge 0.74% 11.06% 5.30% 4.18% 3.83% 4.38%
Lipper Category Avg. Loan Participation Funds 0.62% 9.75% 4.29% 3.97% 3.33% -
CS Leveraged Loan Index 0.78% 11.08% 5.47% 5.25% 4.45% -
w/ sales charge 0.74% 11.06% 5.30% 4.18% 3.83% 4.38%

Fund Expense Ratio :

Gross 0.53%

Net 0.53%

Fund Expense Ratio :

Gross 0.53%

Net 0.53%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 12/31/2007
w/o sales charge 12.93% 12.93% 5.42% 4.44% 3.80% 4.35%
Lipper Category Avg. Loan Participation Funds 11.85% 11.85% 4.43% 4.32% 3.31% -
CS Leveraged Loan Index 13.04% 13.04% 5.64% 5.56% 4.44% -

Fund Expense Ratio :

Gross 0.53%

Net 0.53%

Type Assets
Bank Loans
High Yield Bonds
CLO
Equity
Convertibles
Other
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 01/31/2024 View Portfolio

Rating Assets
A
BBB
BB
B
<B
Not Rated

INVESTMENT TEAM

Kearney M. Posner
Kearney M. Posner, CFA

Partner, Portfolio Manager

24 Years of Industry Experience

Christopher Gizzo
Christopher Gizzo, CFA

Partner, Deputy Director of Leveraged Credit

15 Years of Industry Experience

Robert A. Lee
Robert A. Lee

Partner & Co-Head of Taxable Fixed Income

32 Years of Industry Experience

Steven F. Rocco
Steven F. Rocco, CFA

Partner & Co-Head of Taxable Fixed Income

22 Years of Industry Experience

Supported By 76 Investment Professionals with 16 Years Avg. Industry Experience

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Performance

Performance

Average Yield to Maturity as of 01/31/2024

8.75%

30-Day Standardized Yield 1 as of 01/31/2024  

  Subsidized2 Un-Subsidized3
w/o sales charge 8.92% 8.92%

Fund Expense Ratio :

Gross 0.53%

Net 0.53%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 12/31/2007
w/o sales charge 0.74% 11.06% 5.30% 4.18% 3.83% 4.38%
Lipper Category Avg. Loan Participation Funds 0.62% 9.75% 4.29% 3.97% 3.33% -
CS Leveraged Loan Index 0.78% 11.08% 5.47% 5.25% 4.45% -
w/ sales charge 0.74% 11.06% 5.30% 4.18% 3.83% 4.38%

Fund Expense Ratio :

Gross 0.53%

Net 0.53%

Fund Expense Ratio :

Gross 0.53%

Net 0.53%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 12/31/2007
w/o sales charge 12.93% 12.93% 5.42% 4.44% 3.80% 4.35%
Lipper Category Avg. Loan Participation Funds 11.85% 11.85% 4.43% 4.32% 3.31% -
CS Leveraged Loan Index 13.04% 13.04% 5.64% 5.56% 4.44% -

Fund Expense Ratio :

Gross 0.53%

Net 0.53%

Year Fund Returns CS Leveraged Loan Index
2023 12.93% 13.04%
2022 -1.69% -1.06%
2021 5.53% 5.40%
2020 -1.44% 2.78%
2019 7.62% 8.17%
2018 0.03% 1.14%
2017 4.11% 4.25%
2016 10.18% 9.88%
2015 0.62% -0.38%
2014 1.21% 2.06%
2013 6.28% -
2012 10.28% -
2011 1.72% -
2010 8.65% -
2009 32.91% -
2008 -20.94% -
2007 0.01% -
Year Q1 Q2 Q3 Q4 Yearly Returns
2024 - - - - 1.36%
2023 3.04% 3.30% 3.11% 2.89% 12.93%
2022 -0.15% -5.13% 1.30% 2.45% -1.69%
2021 1.88% 1.87% 1.04% 0.63% 5.53%
2020 -15.68% 7.60% 3.85% 4.60% -1.44%
2019 3.47% 1.70% 0.68% 1.58% 7.62%
2018 1.23% 0.78% 1.82% -3.71% 0.03%
2017 0.98% 0.60% 1.19% 1.29% 4.11%
2016 1.78% 2.83% 3.05% 2.16% 10.18%
2015 2.11% 0.73% -1.13% -1.07% 0.62%
2014 1.01% 1.26% -0.51% -0.54% 1.21%
2013 2.70% 0.42% 1.28% 1.75% 6.28%
2012 4.12% 0.63% 3.34% 1.85% 10.28%
2011 1.81% 0.41% -3.78% 3.41% 1.72%
2010 3.18% -0.82% 3.42% 2.66% 8.65%
2009 9.11% 11.72% 6.56% 2.32% 32.91%
2008 -3.23% 4.22% -4.94% -17.54% -20.94%
2007 - - - - 0.01%

NAV Historical Prices

Date Net Asset Value

Portfolio

Portfolio

Rating Assets
Bank Loans
High Yield Bonds
CLO
Equity
Convertibles
Other
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 01/31/2024

Rating Assets
A
BBB
BB
B
<B
Not Rated

Portfolio Positioning as of 12/31/2023

  • With all-in-yields above 9% and our higher-for-longer interest rate view still intact, we continued to focus on carry opportunities during the period. We selectively added to the portfolio’s CCC credit exposure throughout the period and maintained our overweight positioning in the B-rated tier. We found strong opportunities in select lower quality, higher-yielding loans, using valuation/call-constrained BB-rated loans and tighter spread high yield bonds as a source of funds, especially given the outperformance of high yield over loans in the fourth quarter. We see attractive relative value in the loan market given the yield differential compared to high yield bonds. However, select issuers of shorter duration high yield bonds that are candidates for refinancing continue to be an attractive source of carry.
  • We see opportunities in more cyclical areas given recent economic and consumer resilience. As we start the year, we are modestly underweight CCCs, anticipating that the easing of some financial conditions won’t be the cure for broken capital structures. With much of the investor base still crowded in the safety of BBs, we are finding better value in Bs and we believe that a starting yield of nearly 9% in this rating tier can potentially produce attractive equity-like returns while being in a senior secured position in the capital structure. Thematically, we remain focused on consumer resiliency, short-dated refinancing candidates, high carry, and selective cyclical exposure. We have been adding to financials, technology, and related subsectors given the potential benefit of lower yields on the valuation of their public equities as well as financing costs, while staying focused on long-term secular winners in healthcare, automation, and education.
  • We believe that bank loans may provide an opportunity to capture carry. Loans performed well throughout 2023 as broader positive developments in macroeconomic data, paired with supportive market technicals, counteracted recessionary concerns. With that being said, we expect an easing Fed in the future could have mixed consequences. On one hand, we believe the current pace of easing priced into futures markets is too aggressive, and if we’re right, a walk back of those expectations could create volatility early in the year, particularly in lower-rated issuers. Normally, a decline in policy rates has been associated with lower investor interest in floating-rate exposures, but we believe the demand generated by the significant CLO investor base will prove more meaningful. We expect leverage to remain stable at these higher levels, kept in check by corporate conservatism and larger equity contributions from buyout investors. Challenges include the need for markets to remain open for issuers to address upcoming maturities, as well as a limit on the opportunity set resulting from tighter spreads and lower policy rates. Finally, we expect lower-than-average recoveries to persist, given the phenomenon of repeat default candidates with loan-only structures and the growing CCC segment.

Portfolio Details as of 01/31/2024

Total Net Assets
$4.87 B
Average Effective Duration
0.24 Years
Average Maturity
4.6 Years
Average Modified Duration
0.3 Years
Number of Issues
564
Average Yield to Maturity
8.75%

Dividends & Cap Gains

Dividends & Cap Gains

Dividend Payments

For
YTD Dividends Paidas of 02/20/2024
$0.06052
Dividend Frequency
Monthly (Daily Accrual)
Record Date Ex-Dividend Date Reinvest & Payable Date Dividend Reinvest Price
Daily Daily 01/31/2024 $0.06052 $8.15

Upcoming Dividend Payment Dates

Record Date Ex-Dividend Date Reinvest & Payable Date
Daily Daily 02/29/2024
Daily Daily 03/31/2024
Daily Daily 04/30/2024
Daily Daily 05/31/2024
Daily Daily 06/30/2024
Daily Daily 07/31/2024
Daily Daily 08/31/2024
Daily Daily 09/30/2024
Daily Daily 10/31/2024
Daily Daily 11/30/2024
Daily Daily 12/31/2024

Fees & Expenses

Fees & Expenses

Expense Ratioas of 01/31/2024

Fund Gross Expense Ratio Fund Net Expense Ratio
0.53% 0.53%

Fund Documents

Fund Documents

0Documents selected
Portfolio Holdings 1Q
Publish Date:11/03/2015
Portfolio Holdings 3Q
Publish Date:11/03/2015
Summary Prospectus
Publish Date:11/03/2015
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
Commentary
Publish Date:11/03/2015

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