LHYOX | High Yield Fund Class F3 | Lord Abbett

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High Yield Fund

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Summary

Summary

What is the High Yield Fund?

The Fund seeks to deliver current income and the opportunity for capital appreciation by investing primarily in high yield corporate bonds.
 

A HERITAGE OF HIGH YIELD

Brings a 40+ year history of high-yield investing, focused on fundamental, bottom-up credit research.

AN OPPORTUNISTIC APPROACH

Provides the flexibility to adjust to the market environment and take advantage of opportunities across the credit spectrum.

STRONG TRACK RECORD

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 high-yield holding over a full market cycle.

Yield

Average Yield to Maturity as of 10/31/2023

9.47%

30-Day Standardized Yield 1 as of 11/30/2023  

  Subsidized2 Un-Subsidized3
w/o sales charge 7.98% 7.97%

Fund Basicsas of 10/31/2023

Total Net Assets
$3.80 B
Inception Date
04/05/2017
Dividend Frequency
Monthly
Fund Gross Expense Ratio
0.60%
Fund Net Expense Ratio
0.60%
Number of Holdings
669

Fund Expense Ratio :

Gross 0.60%

Net 0.60%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 05/03/1999
w/o sales charge 6.82% 5.83% 0.12% 2.96% 3.92% 5.99%
Lipper Category Avg. High Yield Funds - - - - - -
ICE BofA U.S. High Yield Constrained Index 9.50% 8.69% 1.46% 4.00% 4.20% -
w/ sales charge 6.82% 5.83% 0.12% 2.96% 3.92% 5.99%

Fund Expense Ratio :

Gross 0.60%

Net 0.60%

Fund Expense Ratio :

Gross 0.60%

Net 0.60%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 05/03/1999
w/o sales charge 3.65% 7.53% 0.79% 1.58% 3.91% 5.90%
Lipper Category Avg. High Yield Funds 5.24% 9.40% 1.63% 2.44% 3.38% -
ICE BofA U.S. High Yield Constrained Index 6.03% 10.28% 1.85% 2.80% 4.17% -

Fund Expense Ratio :

Gross 0.60%

Net 0.60%

Type Assets
High Yield Bonds
Bank Loans
Investment Grade Bonds
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 10/31/2023 View Portfolio

Rating Assets
BBB
BB
B
<B
Not Rated

INVESTMENT TEAM

Steven F. Rocco
Steven F. Rocco, CFA

Partner & Co-Head of Taxable Fixed Income

22 Years of Industry Experience

Robert A. Lee
Robert A. Lee

Partner & Co-Head of Taxable Fixed Income

32 Years of Industry Experience

Christopher Gizzo
Christopher Gizzo, CFA

Partner, Deputy Director of Leveraged Credit

15 Years of Industry Experience

Karen  J. Gunnerson
Karen J. Gunnerson

Portfolio Manager

13 Years of Industry Experience

Supported By 78 Investment Professionals with 17 Years Avg. Industry Experience

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Performance

Performance

Average Yield to Maturity as of 10/31/2023

9.47%

30-Day Standardized Yield 1 as of 11/30/2023  

  Subsidized2 Un-Subsidized3
w/o sales charge 7.98% 7.97%

Fund Expense Ratio :

Gross 0.60%

Net 0.60%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 05/03/1999
w/o sales charge 6.82% 5.83% 0.12% 2.96% 3.92% 5.99%
Lipper Category Avg. High Yield Funds - - - - - -
ICE BofA U.S. High Yield Constrained Index 9.50% 8.69% 1.46% 4.00% 4.20% -
w/ sales charge 6.82% 5.83% 0.12% 2.96% 3.92% 5.99%

Fund Expense Ratio :

Gross 0.60%

Net 0.60%

Fund Expense Ratio :

Gross 0.60%

Net 0.60%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 05/03/1999
w/o sales charge 3.65% 7.53% 0.79% 1.58% 3.91% 5.90%
Lipper Category Avg. High Yield Funds 5.24% 9.40% 1.63% 2.44% 3.38% -
ICE BofA U.S. High Yield Constrained Index 6.03% 10.28% 1.85% 2.80% 4.17% -

Fund Expense Ratio :

Gross 0.60%

Net 0.60%

Year Fund Returns ICE BofA U.S. High Yield Constrained Index
2022 -13.41% -11.16%
2021 6.45% 5.35%
2020 4.80% 6.07%
2019 15.36% 14.41%
2018 -4.95% -2.27%
2017 8.76% 7.48%
2016 16.32% 17.49%
2015 -1.94% -4.61%
2014 3.74% 2.51%
2013 9.96% 7.41%
2012 16.77% -
2011 3.45% -
2010 14.60% -
2009 50.86% -
2008 -23.11% -
2007 2.90% -
2006 - -
Year Q1 Q2 Q3 Q4 Yearly Returns
2023 2.76% 1.23% -0.35% - 7.62%
2022 -5.34% -10.60% -1.39% 3.75% -13.41%
2021 1.93% 3.04% 0.84% 0.51% 6.45%
2020 -16.51% 10.76% 5.74% 7.18% 4.80%
2019 7.70% 3.83% 0.36% 2.79% 15.36%
2018 -0.99% 0.04% 2.48% -6.36% -4.95%
2017 2.88% 2.02% 2.52% 1.07% 8.76%
2016 2.23% 5.43% 5.53% 2.27% 16.32%
2015 3.25% 0.80% -4.13% -1.72% -1.94%
2014 2.98% 3.44% -1.76% -0.87% 3.74%
2013 4.03% -0.96% 2.70% 3.92% 9.96%
2012 6.68% 0.44% 5.12% 3.67% 16.77%
2011 3.88% 1.14% -6.92% 5.78% 3.45%
2010 4.99% -0.84% 6.39% 3.47% 14.60%
2009 6.04% 17.48% 14.04% 6.19% 50.86%
2008 -3.31% 2.09% -7.81% -15.52% -23.11%
2007 3.13% 0.26% 0.58% -1.06% 2.90%
2006 - - - 4.38% -

NAV Historical Prices

Date Net Asset Value

Portfolio

Portfolio

Rating Assets
High Yield Bonds
Bank Loans
Investment Grade Bonds
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 10/31/2023

Rating Assets
BBB
BB
B
<B
Not Rated

Portfolio Positioning as of 09/30/2023

  • The Fund continued to be focused on higher carry, shorter duration securities. High yield spreads have grinded tighter throughout the year, finishing slightly above 400 bps in September, which has helped offset the effects of rising bond yields in the asset class. However, with declining recessionary concerns helping to compress spreads to relatively tight levels, our primary focus has shifted towards identifying higher carry opportunities within the high yield universe. We continue to see value in the new issue high yield market as a strong source of carry given higher coupons and continue to actively participate in select primary issues. We added to the Fund’s Single-B and CCC credit exposure throughout the period, which we view as offering attractive yields to support this carry trade and as macroeconomic data in the U.S. has been mostly positive. We have monetized positions in BBs as a source of funds for these trades, targeting bonds with tight valuations or offering low coupons. We also continue to prioritize sufficient liquidity given market uncertainty.
  • We remain constructive on the Energy and Basic Industry sectors. The Energy sector continued to exhibit defensive characteristics, particularly as the high yield energy index trades at tighter spreads than the overall high yield market. We continue to view Energy as a much more defensive sector than in prior periods given healthy balance sheets, reduced capital spending, and an increased focus on free cash flow. Within Basic Industry, we continue to be constructive in the Metals/Mining, Chemicals, and Steel subsectors due to relatively resilient commodity prices. We believe these issuers have better upside potential given the recent outperformance of cyclical parts of the high yield space. While the Fund maintained an underweight in sectors like Media, we selectively covered this underweight as performance improved, and recession outlooks moderated.
  • The Fund increased its allocation to out-of-index sectors. We generally believe that select exposures to these sectors can offer attractive risk-reward opportunities, potential portfolio diversification benefits, and avenues for liquidity. The Fund increased its modest allocation to bank loans throughout the quarter. Given the teams focus on carry, we view the bank loan asset class as an attractive source of income with a limited duration profile. While the Fund has the flexibility to toggle allocations to off-benchmark asset classes, we maintained the majority of exposure in traditional high yield corporate bonds.
  • Looking forward, we believe that high yield bonds continue to provide investors an opportunity to capture attractive carry despite the continued rise in interest rates and their potential effects on credit metrics. High yield bonds have performed well throughout 2023, and we maintain a broadly constructive outlook on the asset class due to several reasons. U.S. high yield issuers overall continue to boast much stronger balance sheets in aggregate than at the start of prior slowdowns. For example, leverage is close to its lowest level in the post financial crisis period, and interest coverage metrics are only slightly below record highs. This high yield index also remains around its highest quality in recent years, with almost 50% of the index rated BB. The asset class also has meaningful runway with respect to maturities with only 13% of the market set to mature through 2025, with issuers having reduced this amount relative to start of year levels through proactive refinancing. Additionally, starting yields for the high yield index are well above 8%, which has historically translated into strong forward returns across market environments. While we continue to monitor for signs of rising credit stress in the sector, resiliency, economic momentum, and the credit trends noted above leave us comfortable with our current exposures across the ratings spectrum, including select CCCs.

Portfolio Details as of 10/31/2023

Total Net Assets
$3.80 B
Average Effective Duration
3.55 Years
Average Maturity
5.2 Years
Number of Issues
669
Average Yield to Maturity
9.47%

Dividends & Cap Gains

Dividends & Cap Gains

Dividend Payments

Dividend Payments

For
YTD Dividends Paidas of 12/05/2023
$0.38711
Dividend Frequency
Monthly (Daily Accrual)
Record Date Ex-Dividend Date Reinvest & Payable Date Dividend Reinvest Price
Daily Daily 11/30/2023 $0.03682 $6.16
Daily Daily 10/31/2023 $0.03671 $5.93
Daily Daily 09/30/2023 $0.03663 $6.05
Daily Daily 08/31/2023 $0.03679 $6.17
Daily Daily 07/31/2023 $0.03573 $6.22
Daily Daily 06/30/2023 $0.03524 $6.18
Daily Daily 05/31/2023 $0.03533 $6.12
Daily Daily 04/30/2023 $0.03492 $6.23
Daily Daily 03/31/2023 $0.03286 $6.21
Daily Daily 02/28/2023 $0.03397 $6.16
Daily Daily 01/31/2023 $0.03211 $6.30

Upcoming Dividend Payment Dates

Record Date Ex-Dividend Date Reinvest & Payable Date
Daily Daily 12/31/2023

Capital Gains Distributions

For
Record Date Reinvest & Payable Date Long-term Short-term * Total Reinvest Price
12/16/2021 12/17/2021 - $0.0100 $0.0100 $7.49

Fees & Expenses

Fees & Expenses

Expense Ratioas of 10/31/2023

Fund Gross Expense Ratio Fund Net Expense Ratio
0.60% 0.60%

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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The ICE BofA Merrill Lynch U.S. High Yield Constrained Index is a capitalization-weighted index of all US dollar denominated below investment grade corporate debt publicly issued in the US domestic market. Qualifying securities must have a below investment grade rating (based on an average of Moody’s, S&P and Fitch), at least 18 months to final maturity at the time of issuance, at least one year remaining term to final maturity as of the rebalancing date, a fixed coupon schedule and a minimum amount outstanding of $100 million. The index caps individual issuer at 2%. Index constituents are capitalization-weighted, based on their current amount outstanding, provided the total allocation to an individual issuer does not exceed 2%. Issuers that exceed the limit are reduced to 2% and the face value of each of their bonds is adjusted on a pro-rata basis. The face values of bonds of all other issuers that fall below the 2% cap are increased on a pro-rata basis. In the event there are fewer than 50 issuers in the Index, each is equally weighted and the face values of their respective bonds are increased or decreased on a pro-rata basis.

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