LRRKX | Floating Rate Fund Class R4 | Lord Abbett

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(as of 12/05/2015)

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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 08/31/2023

8.96%

30-Day Standardized Yield 1 as of 08/31/2023  

  Subsidized2 Un-Subsidized3
w/o sales charge 8.51% 8.50%

Fund Basicsas of 08/31/2023

Total Net Assets
$5.09 B
Inception Date
06/30/2015
Dividend Frequency
Monthly
Fund Gross Expense Ratio
0.85%
Fund Net Expense Ratio
0.85%
Number of Holdings
572

Fund Expense Ratio :

Gross 0.85%

Net 0.85%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 12/31/2007
w/o sales charge 8.75% 8.92% 5.54% 2.73% 3.32% 3.88%
Lipper Category Avg. Loan Participation Funds 8.10% 8.08% 4.65% 3.00% 3.14% -
CS Leveraged Loan Index 8.95% 9.08% 5.84% 4.27% 4.27% -
w/ sales charge 8.75% 8.92% 5.54% 2.73% 3.32% 3.88%

Fund Expense Ratio :

Gross 0.85%

Net 0.85%

Fund Expense Ratio :

Gross 0.85%

Net 0.85%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 12/31/2007
w/o sales charge 6.28% 10.11% 5.93% 2.49% 3.18% 3.77%
Lipper Category Avg. Loan Participation Funds 5.65% 9.27% 4.96% 2.76% 3.01% -
CS Leveraged Loan Index 6.33% 10.10% 6.16% 4.02% 4.13% -

Fund Expense Ratio :

Gross 0.85%

Net 0.85%

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

Credit Quality Distribution as of 08/31/2023 View Portfolio

Rating Assets
AAA
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 08/31/2023

8.96%

30-Day Standardized Yield 1 as of 08/31/2023  

  Subsidized2 Un-Subsidized3
w/o sales charge 8.51% 8.50%

Fund Expense Ratio :

Gross 0.85%

Net 0.85%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 12/31/2007
w/o sales charge 8.75% 8.92% 5.54% 2.73% 3.32% 3.88%
Lipper Category Avg. Loan Participation Funds 8.10% 8.08% 4.65% 3.00% 3.14% -
CS Leveraged Loan Index 8.95% 9.08% 5.84% 4.27% 4.27% -
w/ sales charge 8.75% 8.92% 5.54% 2.73% 3.32% 3.88%

Fund Expense Ratio :

Gross 0.85%

Net 0.85%

Fund Expense Ratio :

Gross 0.85%

Net 0.85%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 12/31/2007
w/o sales charge 6.28% 10.11% 5.93% 2.49% 3.18% 3.77%
Lipper Category Avg. Loan Participation Funds 5.65% 9.27% 4.96% 2.76% 3.01% -
CS Leveraged Loan Index 6.33% 10.10% 6.16% 4.02% 4.13% -

Fund Expense Ratio :

Gross 0.85%

Net 0.85%

Year Fund Returns CS Leveraged Loan Index
2022 -1.89% -1.06%
2021 5.09% 5.40%
2020 -1.75% 2.78%
2019 7.29% 8.17%
2018 -0.27% 1.14%
2017 3.69% 4.25%
2016 9.95% 9.88%
2015 0.31% -0.38%
2014 0.88% 2.06%
2013 5.94% 6.15%
2012 9.93% -
2011 1.40% -
2010 8.30% -
2009 32.49% -
2008 -21.19% -
2007 0.01% -
Year Q1 Q2 Q3 Q4 Yearly Returns
2023 2.96% 3.22% - - 9.46%
2022 -0.10% -5.21% 1.21% 2.37% -1.89%
2021 1.81% 1.79% 0.96% 0.43% 5.09%
2020 -15.77% 7.53% 3.78% 4.53% -1.75%
2019 3.40% 1.62% 0.60% 1.50% 7.29%
2018 1.16% 0.71% 1.75% -3.79% -0.27%
2017 0.79% 0.54% 1.00% 1.32% 3.69%
2016 1.70% 2.75% 2.97% 2.19% 9.95%
2015 2.03% 0.65% -1.20% -1.14% 0.31%
2014 0.93% 1.18% -0.59% -0.62% 0.88%
2013 2.62% 0.34% 1.20% 1.67% 5.94%
2012 4.04% 0.55% 3.26% 1.76% 9.93%
2011 1.73% 0.33% -3.86% 3.33% 1.40%
2010 3.10% -0.89% 3.34% 2.58% 8.30%
2009 9.02% 11.63% 6.48% 2.24% 32.49%
2008 -3.31% 4.14% -5.02% -17.61% -21.19%
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

Credit Quality Distribution as of 08/31/2023

Rating Assets
AAA
A
BBB
BB
B
<B
Not Rated

Portfolio Positioning as of 06/30/2023

  • Our primary focus in the loan market has shifted towards carry opportunities within the loan universe. We maintained the Fund’s Single-B credit exposure throughout the period. We also found strong opportunities in higher-yielding loans, using tighter valuation/call-constrained BB loans and lower quality high yield bonds as a source of funds. With the substantial yield difference between loans and high yield bonds, the team sees strong relative value in the loan market. The risk rally towards the back half of the second quarter created an opportunity to trim lower conviction bond names in favor of higher carry, higher-in-the-capital-structure loan opportunities.
  • The Fund maintained a large weighting in both Healthcare and IT sectors, which we believe are better positioned to adapt to and benefit from fundamental structural changes that were accelerated by the COVID-19 pandemic. Economic resilience and a strong U.S. consumer have benefited more cyclical areas recently. The Fund held overweight positions in areas like Aerospace, Energy, Leisure, and Transportation. These areas have benefited from strong summer travel demand, resilient consumer spending, and improving fundamentals. In Leisure specifically, we remain overweight Hotels and Gaming subsectors. In Transportation, we see opportunities in the Airlines subsector, as domestic and international travel bookings remain strong. On the other hand, we have continued to be underweight certain sectors that we believe are overexposed to elevated costs. These sectors include Services and Telecommunications, which have broadly struggled to manage rising inflationary pressures.
  • Loans have performed well during the first half of 2023 as broader positive developments in macroeconomic data counteracted recession concerns. However, we continue to monitor for signs of rising credit stress given the surge in interest rates over the last 12 months. Separately, a growth slowdown and deterioration in credit metrics, particularly within CCC credits, could potentially lead to the default rate climbing towards the long-term average above 3% in the second half of 2023 into 2024. The risk posture within bank loan portfolios remains modestly defensive. We acknowledge that loan performance may be challenged, particularly if Federal Reserve (Fed) policy supports a higher-for-longer rate regime. This could be a headwind for loan issuers, who have already seen debt service costs double over the course of the last 12 months, although coverage ratios remain strong. Therefore, we believe it’s vital to watch for broader signs of rising credit stress, given tighter financial conditions and more stringent access to capital. It is our view that tail risks remain elevated, and a lack of investor conviction in the asset class could stress liquidity, which would be magnified if economic growth continues to be subdued, and inflation persists. Liquidity management is a paramount focus for us, and we have maintained an up-in-liquidity posture within the Fund. We also believe that strong security selection is necessary in the second half of the year, as downgrades and default risks climb, entailing the need to avoid deteriorating credits amid higher dispersion in performance.

Portfolio Details as of 08/31/2023

Total Net Assets
$5.09 B
Average Effective Duration
0.2 Years
Average Maturity
4.2 Years
Average Modified Duration
0.3 Years
Number of Issues
572
Average Yield to Maturity
8.96%

Dividends & Cap Gains

Dividends & Cap Gains

Dividend Payments

For
YTD Dividends Paidas of 09/28/2023
$0.43060
Dividend Frequency
Monthly (Daily Accrual)
Record Date Ex-Dividend Date Reinvest & Payable Date Dividend Reinvest Price
Daily Daily 08/31/2023 $0.05937 $8.09
Daily Daily 07/31/2023 $0.05633 $8.06
Daily Daily 06/30/2023 $0.05372 $8.02
Daily Daily 05/31/2023 $0.05689 $7.88
Daily Daily 04/30/2023 $0.05209 $7.95
Daily Daily 03/31/2023 $0.05071 $7.93
Daily Daily 02/28/2023 $0.05225 $7.97
Daily Daily 01/31/2023 $0.04923 $7.98

Upcoming Dividend Payment Dates

Record Date Ex-Dividend Date Reinvest & Payable Date
Daily Daily 09/30/2023
Daily Daily 10/31/2023
Daily Daily 11/30/2023
Daily Daily 12/31/2023

Fees & Expenses

Fees & Expenses

Expense Ratioas of 08/31/2023

Fund Gross Expense Ratio Fund Net Expense Ratio
0.85% 0.85%

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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