LFRRX | Floating Rate Fund Class R2 | Lord Abbett

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Floating Rate Fund

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

Dividend Yield 1 as of 01/14/2022  

w/o sales charge 3.12%

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

3.06%

Fund Basicsas of 12/31/2021

Total Net Assets
$7.04 B
Inception Date
12/31/2007
Dividend Frequency
Monthly
Fund Expense Ratio
1.20%
Number of Holdings
622

Fund Expense Ratio :

1.20%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 12/31/2007
w/o sales charge 4.72% 4.72% 3.15% 2.42% 3.66% 3.60%
Lipper Category Avg. Loan Participation Funds 4.43% 4.43% 4.29% 3.23% 3.78% -
CS Leveraged Loan Index 5.41% 5.41% 5.43% 4.32% 4.84% 4.51%

Fund Expense Ratio :

1.20%

Fund Expense Ratio :

1.20%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 12/31/2007
w/o sales charge 4.72% 4.72% 3.15% 2.42% 3.66% 3.60%
Lipper Category Avg. Loan Participation Funds 4.43% 4.43% 4.29% 3.23% 3.78% -
CS Leveraged Loan Index 5.41% 5.41% 5.43% 4.32% 4.84% 4.51%

Fund Expense Ratio :

1.20%

RELATED CONTENT

Update on Floating Rate: Three Reasons to Consider Bank Loans
October 26, 2020

Rising inflation expectations, attractive valuations, and favorable supply/demand dynamics suggest the potential for solid performance for the asset class in the months ahead.

Bridging the Divide Between High Yield and Bank Loans
September 17, 2020

While high yield has found more favor with investors recently, several factors could potentially shift the valuation gap to bank loans’ advantage.

An Update on Floating Rate Bank Loans Amid Recent Market Volatility
April 17, 2020

Our expert assesses current market conditions—and the historical resilience of floating rate bank loans after periods of elevated volatility.

Type Assets
Bank Loans
High Yield Bonds
Equity
ABS
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 12/31/2021 View Portfolio

Rating Assets
BBB
BB
B
<B
Not Rated

INVESTMENT TEAM

Jeffrey D. Lapin
Jeffrey D. Lapin, J.D.

Partner & Portfolio Manager

24 Years of Industry Experience

Steven F. Rocco
Steven F. Rocco, CFA

Partner & Co-Head of Taxable Fixed Income

20 Years of Industry Experience

Kearney M. Posner
Kearney M. Posner, CFA

Managing Director, Portfolio Manager

22 Years of Industry Experience

Robert A. Lee
Robert A. Lee

Partner & Co-Head of Taxable Fixed Income

30 Years of Industry Experience

Supported By 63 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 3.12%

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

  Subsidized3 Un-Subsidized4
w/o sales charge 3.06% 3.06%

Fund Expense Ratio :

1.20%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 12/31/2007
w/o sales charge 4.72% 4.72% 3.15% 2.42% 3.66% 3.60%
Lipper Category Avg. Loan Participation Funds 4.43% 4.43% 4.29% 3.23% 3.78% -
CS Leveraged Loan Index 5.41% 5.41% 5.43% 4.32% 4.84% 4.51%

Fund Expense Ratio :

1.20%

Fund Expense Ratio :

1.20%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 12/31/2007
w/o sales charge 4.72% 4.72% 3.15% 2.42% 3.66% 3.60%
Lipper Category Avg. Loan Participation Funds 4.43% 4.43% 4.29% 3.23% 3.78% -
CS Leveraged Loan Index 5.41% 5.41% 5.43% 4.32% 4.84% 4.51%

Fund Expense Ratio :

1.20%

Year Fund Returns CS Leveraged Loan Index
2021 4.72% 5.41%
2020 -2.09% 2.78%
2019 7.04% 8.17%
2018 -0.72% 1.14%
2017 3.45% 4.25%
2016 9.46% 9.88%
2015 -0.16% -0.38%
2014 0.54% 2.06%
2013 5.59% 6.15%
2012 9.57% 9.43%
2011 1.05% -
2010 8.59% -
2009 32.83% -
2008 -21.47% -
2007 0.01% -
Year Q1 Q2 Q3 Q4 Yearly Returns
2021 1.60% 1.82% 0.88% 0.35% 4.72%
2020 -15.82% 7.43% 3.68% 4.43% -2.09%
2019 3.42% 1.54% 0.51% 1.41% 7.04%
2018 1.07% 0.62% 1.66% -3.98% -0.72%
2017 0.82% 0.34% 1.02% 1.23% 3.45%
2016 1.62% 2.66% 2.88% 1.99% 9.46%
2015 1.95% 0.46% -1.19% -1.34% -0.16%
2014 0.84% 0.98% -0.67% -0.60% 0.54%
2013 2.43% 0.25% 1.22% 1.58% 5.59%
2012 3.84% 0.58% 3.18% 1.68% 9.57%
2011 1.65% 0.23% -3.94% 3.25% 1.05%
2010 3.10% -0.73% 3.24% 2.77% 8.59%
2009 8.94% 11.88% 6.71% 2.13% 32.83%
2008 -3.39% 4.06% -5.10% -17.68% -21.47%
2007 - - - - 0.01%

NAV Historical Prices

Date Net Asset Value

Portfolio

Portfolio

Rating Assets
Bank Loans
High Yield Bonds
Equity
ABS
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 12/31/2021

Rating Assets
BBB
BB
B
<B
Not Rated

Portfolio Positioning as of 09/30/2021

  • We continue to have a broadly constructive view on leveraged loans based on a supportive macroeconomic outlook, attractive relative yield, balanced technicals and interest rate view. The broader credit environment remains supportive for leveraged loan issuers and demand for the product has been persistent with record CLO issuance year-to-date. Within the loan space, we maintain our focus on companies in industries that we believe are better positioned to adapt to and benefit from fundamental structural changes that were accelerated by the COVID-19 pandemic. We have also identified covid-impacted credits with improving fundamentals and/or rating prospects. The Fund reflects this thesis with positions in the healthcare and information technology sectors, aided by long term secular tailwinds, as well as reopening beneficiaries such as the retail, energy and gaming sectors.
  • We have continued to find attractive opportunities in the reopening theme which has performed well over the last twelve months. We remain constructive in leisure which has now expanded from regional gaming investments to greater lodging and event-focused investments as Delta fears subside. Energy continued to benefit from underinvestment and a resurgence of activity, and we have actively added to Exploration & Production (E&P) issuers with a focus on natural gas. Finally, the consumer remains extremely strong with significant excess savings and we have looked for retail opportunities poised to benefit from continued growth in e-commerce, housing and apparel trends.
  • The current economic landscape is favorable for bank loan issuers supported by solid economic growth and a positive earnings outlook with low projected default rates. We expect the trailing 12-month default rate to continue to fall below 1% through year end after peaking just above 4% in September 2020. Furthermore, the U.S. distress ratio is at just 1.1% of the leveraged loan market. Given the inverse relationship between recovery levels and the default rate, we expect default losses to account for a minimal drag on loan index performance for the remainder of 2021 and through 2022. Specifically, we believe there continues to be opportunity in lower rated tiers of the credit market where valuations have generally lagged higher rated securities. We view the most attractive opportunities to be in CCC rated credit, which we believe has the highest upside given historically tight B spread levels and the recent pace of upgrades which has been meaningfully larger than the pace of downgrades. Finally, we believe the technical picture remains supportive. While issuance has been robust on elevated M&A activity, it has been met with demand from record levels of CLO issuance which we expect to continue into year-end in advance of potential tax changes and LIBOR transition.

Portfolio Details as of 12/31/2021

Total Net Assets
$7.04 B
Number of Issues
622
Average Maturity
5.16 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 $0.02197 $8.41
Daily Daily 11/30/2021 $0.02289 $8.38
Daily Daily 10/31/2021 $0.02412 $8.43
Daily Daily 09/30/2021 $0.02388 $8.45
Daily Daily 08/31/2021 $0.02479 $8.42
Daily Daily 07/31/2021 $0.02491 $8.40
Daily Daily 06/30/2021 $0.02450 $8.45
Daily Daily 05/31/2021 $0.02559 $8.42
Daily Daily 04/30/2021 $0.02203 $8.39
Daily Daily 03/31/2021 $0.02330 $8.37
Daily Daily 02/28/2021 $0.02429 $8.39
Daily Daily 01/31/2021 $0.02501 $8.37

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
12/17/2013 12/18/2013 - $0.0160 $0.0160 $9.51

Upcoming Capital Gain Distribution

Record Date Ex-Dividend Date
12/19/2022 12/20/2022

Fees & Expenses

Fees & Expenses

Expense Ratioas of 12/31/2021

1.20%

Fund Documents

Fund Documents

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Portfolio Holdings 1Q
Publish Date:11/03/2015
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Portfolio Holdings 3Q
Publish Date:11/03/2015
Summary Prospectus
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Statutory Prospectus
Publish Date:11/03/2015
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Prospectus (XBRL)
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
Publish Date:11/03/2015
Fund Story
Publish Date:11/03/2015
Publish Date:11/03/2015

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The Credit Suisse Leveraged Loan Index is designed to mirror the investable universe of the U.S. dollar-denominated leveraged loan market. The CS Leveraged Loan Index is an unmanaged, trader-priced index that tracks leveraged loans. The CS Leveraged Loan Index, which includes reinvested dividends, has been taken from published sources.

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