LAHYX | High Yield Fund Class I | 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

Dividend Yield 1 as of 12/06/2022  

w/o sales charge 6.20%

30-Day Standardized Yield 2 as of 11/30/2022  

7.11%

Fund Basicsas of 10/31/2022

Total Net Assets
$4.67 B
Inception Date
05/03/1999
Dividend Frequency
Monthly
Fund Expense Ratio
0.68%
Number of Holdings
598
Minimum Initial Investment

Fund Expense Ratio :

0.68%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 05/03/1999
w/o sales charge -12.68% -11.37% -0.21% 1.34% 4.31% 5.92%
Lipper Category Avg. High Yield Funds -10.02% -8.48% 0.53% 1.94% 3.46% -
ICE BofA U.S. High Yield Constrained Index -10.50% -8.82% 0.70% 2.32% 4.18% 5.91%

Fund Expense Ratio :

0.68%

Fund Expense Ratio :

0.68%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 05/03/1999
w/o sales charge -16.60% -16.20% -1.50% 0.56% 4.03% 5.76%
Lipper Category Avg. High Yield Funds -13.98% -13.50% -0.80% 1.04% 3.13% -
ICE BofA U.S. High Yield Constrained Index -14.58% -14.04% -0.69% 1.39% 3.86% 5.74%

Fund Expense Ratio :

0.68%

RELATED CONTENT

A Powerful Trend That Could Support U.S. High Yield in 2022
December 6, 2021

We expect a surge in “rising stars”—upgrades of U.S. debt issues from high yield to investment grade—over the next two years.

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 10/31/2022 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

21 Years of Industry Experience

Robert A. Lee
Robert A. Lee

Partner & Co-Head of Taxable Fixed Income

31 Years of Industry Experience

Christopher Gizzo
Christopher Gizzo, CFA

Partner, Deputy Director of Leveraged Credit

14 Years of Industry Experience

Karen  J. Gunnerson
Karen J. Gunnerson

Portfolio Manager

12 Years of Industry Experience

Supported By 70 Investment Professionals with 16 Years Avg. Industry Experience

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Performance

Performance

Dividend Yield 1 as of 12/06/2022  

w/o sales charge 6.20%

30-Day Standardized Yield 2 as of 11/30/2022  

  Subsidized3 Un-Subsidized4
w/o sales charge 7.11% 7.11%

Fund Expense Ratio :

0.68%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 05/03/1999
w/o sales charge -12.68% -11.37% -0.21% 1.34% 4.31% 5.92%
Lipper Category Avg. High Yield Funds -10.02% -8.48% 0.53% 1.94% 3.46% -
ICE BofA U.S. High Yield Constrained Index -10.50% -8.82% 0.70% 2.32% 4.18% 5.91%

Fund Expense Ratio :

0.68%

Fund Expense Ratio :

0.68%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 05/03/1999
w/o sales charge -16.60% -16.20% -1.50% 0.56% 4.03% 5.76%
Lipper Category Avg. High Yield Funds -13.98% -13.50% -0.80% 1.04% 3.13% -
ICE BofA U.S. High Yield Constrained Index -14.58% -14.04% -0.69% 1.39% 3.86% 5.74%

Fund Expense Ratio :

0.68%

Year Fund Returns ICE BofA U.S. High Yield Constrained Index
2021 6.36% 5.35%
2020 4.69% 6.07%
2019 15.25% 14.41%
2018 -5.06% -2.27%
2017 8.85% 7.48%
2016 16.04% 17.49%
2015 -2.02% -4.61%
2014 3.68% 2.51%
2013 9.89% 7.41%
2012 16.70% 15.55%
2011 3.38% -
2010 14.53% -
2009 50.77% -
2008 -23.15% -
2007 2.84% -
2006 10.32% -
2005 1.49% -
2004 10.75% -
2003 22.05% -
2002 0.42% -
Year Q1 Q2 Q3 Q4 Yearly Returns
2022 -5.36% -10.62% -1.41% - -12.59%
2021 1.77% 3.15% 0.82% 0.49% 6.36%
2020 -16.67% 10.91% 5.71% 7.15% 4.69%
2019 7.52% 3.82% 0.33% 2.90% 15.25%
2018 -1.14% 0.01% 2.59% -6.39% -5.06%
2017 2.87% 2.02% 2.50% 1.18% 8.85%
2016 2.06% 5.55% 5.50% 2.10% 16.04%
2015 3.23% 0.79% -4.15% -1.74% -2.02%
2014 2.96% 3.43% -1.77% -0.89% 3.68%
2013 4.01% -0.97% 2.69% 3.90% 9.89%
2012 6.66% 0.42% 5.10% 3.66% 16.70%
2011 3.86% 1.13% -6.94% 5.76% 3.38%
2010 4.98% -0.86% 6.37% 3.45% 14.53%
2009 6.03% 17.47% 14.02% 6.17% 50.77%
2008 -3.32% 2.08% -7.82% -15.53% -23.15%
2007 3.12% 0.25% 0.57% -1.08% 2.84%
2006 2.70% 0.06% 2.86% 4.36% 10.32%
2005 -1.69% 1.60% 1.03% 0.57% 1.49%
2004 1.02% -0.21% 4.53% 5.11% 10.75%
2003 4.04% 8.36% 2.60% 5.52% 22.05%
2002 1.59% -3.54% -3.57% 6.27% 0.42%
2001 5.25% -1.59% -4.02% 6.14% 5.51%
2000 -1.46% 1.00% 0.40% -2.68% -2.75%
1999 - - -0.62% 4.12% 0.87%

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 10/31/2022

Rating Assets
BBB
BB
B
<B
Not Rated

Portfolio Positioning as of 9/30/2022

  • We continued to position the Fund in relatively higher quality and more liquid assets. We have focused on adding exposure to the higher quality rating bucket within the high yield cash market. Specifically, we increased Fund exposure to larger, more liquid complexes and targeted shorter duration, secured bonds to further reduce headline risk within the Fund. We primarily added to the Fund’s allocation to BBs as these credits yielded more attractive relative valuations, given the recent widening in spreads from the selloff of more duration sensitive bonds within the high yield universe. We simultaneously reduced CCCs given the ongoing sentiment on increased recessionary risks in the U.S. and global economies. Notably, the Fund finished the quarter underweight CCCs from a risk-adjusted standpoint.
  • Energy continued to be the Fund’s top sector overweight position. The Fund’s exposure in the sector remained primarily in the Exploration & Production subsector. Although WTI crude prices had softened throughout the quarter, we believe that issuers should still be supported by oil prices given the ongoing favorable supply and demand technical, which has been stressed by the European Union ban on Russian oil imports. We also expect the sector to remain supported by ongoing fiscal discipline practiced by management teams. While the Fund remains overweight and constructive on the Energy sector, it is important to note that the high yield energy index continues to trade at tighter spreads than the overall high yield market. As a result, the return profile of that sector should be less of a positive outlier than it has been in the post-COVID-19 period to date. Additionally, we are aware of the potential for moderating energy demand as global growth slows. As such, we modestly reduced exposure specifically to oil field service issuers that generally exhibit higher betas. That being said, we continue to view Energy as a much more defensive sector than in the recent past given the fundamental behavioral changes of companies within it.
  • We reduced the Fund’s cyclical exposure in favor of more defensive sectors. Given the rising recession probabilities, we have reduced the Fund’s overall position in the Basic Industry sector given its more cyclical nature. Reductions were across the board in Metals and Mining, Chemicals and Building Materials subsectors from concerns around global demand and softening commodity prices. We instead had migrated the Fund to a more defensive posture over the quarter, targeting Healthcare and Utilities sectors given their less volatile nature. Within Healthcare, we were particularly constructive in Pharmaceuticals and Health Services companies that exhibit less sensitivity to high wage costs. For Utilities, we added to Electric-Generation and Integrated issuers.
  • The Fund continued to be underweight sectors with excess exposure to consumer spending. We believe that sectors such as Retail and Leisure should continue to face headwinds as inflation continued to rise and weigh on consumer sentiment and potential spending patterns. With respect to retailers, issuers have experienced higher input costs and ongoing supply chain issues, putting pressure on margins as they manage through bloated inventories. Select U.S. consumers have shown signs of curbing consumption on goods given the rising prices, particularly low-end consumers which may experience the effects of inflation more substantially as they have less flexibility to absorb these prices. As for Leisure, the Gaming and Recreation & Travel subsectors have also exhibited sensitivity to rising labor costs. We remained significantly underweight cruise line issuers in this space given their ongoing, repetitive financing needs.
  • Media and Telecommunications sectors remained the Fund’s largest sector underweights. We expect heightened labor costs to continue to be a significant headwind to the Media sector. In recent months we trimmed the Fund’s holdings within the Cable & Satellite TV subsector which we feel is more exposed to these headwinds, particularly as select issuers in this space struggle with subscriptions losses. Within Telecommunications, we expect the sector to continue struggling with secular issues, with traditional wireline companies particularly at risk as their customer base continued to erode.
  • We decreased allocations to out-of-index sectors. While we generally believe that select exposures to these sectors offer attractive risk-reward opportunities, potential portfolio diversification benefits and avenues for liquidity, we decreased the Fund’s allocation to certain off-benchmark sectors and added back to high yield bonds. The reductions were mostly to investment grade bonds and Emerging Market bonds. The Fund maintained slight exposures to bank loans and equities, which we mostly in defensive sectors.

Portfolio Details as of 10/31/2022

Total Net Assets
$4.67 B
Number of Issues
598
Average Coupon
5.38%
Average Maturity
5.95 Years
Average Effective Duration
4.01 Years
Average Yield to Worst
8.47%

Dividends & Cap Gains

Dividends & Cap Gains

Dividend Payments

Dividend Payments

For
YTD Dividends Paidas of 12/06/2022
$0.354
Dividend Frequency
Monthly (Daily Accrual)
Record Date Ex-Dividend Date Reinvest & Payable Date Dividend Reinvest Price
Daily Daily 11/30/2022 $0.03216 $6.23
Daily Daily 10/31/2022 $0.03019 $6.14
Daily Daily 09/30/2022 $0.03118 $6.01
Daily Daily 08/31/2022 $0.03264 $6.31
Daily Daily 07/31/2022 $0.03228 $6.49
Daily Daily 06/30/2022 $0.03244 $6.19
Daily Daily 05/31/2022 $0.03285 $6.70
Daily Daily 04/30/2022 $0.03273 $6.75
Daily Daily 03/31/2022 $0.03368 $7.03
Daily Daily 02/28/2022 $0.03262 $7.15
Daily Daily 01/31/2022 $0.03146 $7.28

Upcoming Dividend Payment Dates

Record Date Ex-Dividend Date Reinvest & Payable Date
Daily Daily 12/31/2022

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

Upcoming Capital Gain Distribution

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

Fees & Expenses

Fees & Expenses

Expense Ratioas of 11/30/2022

0.68%

Fund Documents

Fund Documents

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Portfolio Holdings 1Q
Publish Date:11/03/2015
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Annual Report
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Semi-Annual Report
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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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