LIFAX | Inflation Focused Fund Class A | Lord Abbett

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Inflation Focused Fund

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Summary

Summary

What is the Inflation Focused Fund?

The Fund seeks to deliver total returns that exceed the rate of inflation in the U.S. over a full inflation cycle and current income by combining investments in inflation swaps with a portfolio of short duration credit. 
 

EXPERIENCED INVESTMENT TEAM

The strategy is managed through a collaboration among 40+ investment professionals in portfolio management, credit research, and trading.

HIGHER INCOME POTENTIAL WITH LOWER DURATION

By utilizing short duration credit, the strategy generates the highest income stream in the Morningstar category with one-third the duration of the average TIPS-based portfolio.

TRUE INFLATION PROTECTION

By using inflation swaps to hedge exposure to investor expectations of future inflation, the strategy isolates inflation risk with much less nominal interest rate exposure than the Morningstar category.  As such, the strategy is designed to do well when inflation expectation increase.

Yield

Average Yield to Maturity as of 03/28/2024

5.94%

30-Day Standardized Yield 1 as of 03/31/2024  

  Subsidized2 Un-Subsidized3
w/o sales charge 4.46% 4.45%

Fund Basicsas of 03/28/2024

Total Net Assets
$917.05 M
Inception Date
04/29/2011
Dividend Frequency
Monthly
Fund Gross Expense Ratio
0.73%
Fund Net Expense Ratio
0.73%
Number of Holdings
543
Minimum Initial Investment
$1,500+

Fund Expense Ratio :

Gross 0.73%

Net 0.73%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 04/29/2011
w/o sales charge 1.28% 2.66% 2.00% 3.68% 1.80% 1.72%
Lipper Category Avg. Inflation Protected Bond Funds 0.20% 0.82% -0.40% 2.33% 1.71% -
Bloomberg U.S. TIPS 1-5 Year Index 0.62% 2.77% 1.74% 3.06% 1.98% 1.66%
w/ sales charge -1.04% 0.35% 1.22% 3.21% 1.57% 1.54%

Fund Expense Ratio :

Gross 0.73%

Net 0.73%

Fund Expense Ratio :

Gross 0.73%

Net 0.73%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 04/29/2011
w/o sales charge 1.28% 2.66% 2.00% 3.68% 1.80% 1.72%
Lipper Category Avg. Inflation Protected Bond Funds 0.20% 0.82% -0.40% 2.33% 1.71% -
Bloomberg U.S. TIPS 1-5 Year Index 0.62% 2.77% 1.74% 3.06% 1.98% 1.66%
w/ sales charge -1.04% 0.35% 1.22% 3.21% 1.57% 1.54%

Fund Expense Ratio :

Gross 0.73%

Net 0.73%

Type Assets
Investment Grade Corporate
ABS
CLO
High Yield Corporate
CMBS
MBS
Bank Loans
Other
Cash
Maturity Assets
Less than 1 year
1-2.99 years
3-4.99 years
5-6.99 years

Credit Quality Distribution as of 03/28/2024 View Portfolio

Rating Assets
Agency
AAA
AA
A
BBB
<BBB
Not Rated

INVESTMENT TEAM

Kewjin Yuoh
Kewjin Yuoh

Partner, Portfolio Manager

30 Years of Industry Experience

Andrew H. O'Brien
Andrew H. O'Brien, CFA

Partner, Portfolio Manager

26 Years of Industry Experience

Steven F. Rocco
Steven F. Rocco, CFA

Partner & Co-Head of Taxable Fixed Income

23 Years of Industry Experience

Leah G. Traub
Leah G. Traub, Ph.D.

Partner & Portfolio Manager

23 Years of Industry Experience

Robert A. Lee
Robert A. Lee

Partner & Co-Head of Taxable Fixed Income

33 Years of Industry Experience

Supported By 82 Investment Professionals with 17 Years Avg. Industry Experience

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Performance

Performance

Average Yield to Maturity as of 03/28/2024

5.94%

30-Day Standardized Yield 1 as of 03/31/2024  

  Subsidized2 Un-Subsidized3
w/o sales charge 4.46% 4.45%

Fund Expense Ratio :

Gross 0.73%

Net 0.73%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 04/29/2011
w/o sales charge 1.28% 2.66% 2.00% 3.68% 1.80% 1.72%
Lipper Category Avg. Inflation Protected Bond Funds 0.20% 0.82% -0.40% 2.33% 1.71% -
Bloomberg U.S. TIPS 1-5 Year Index 0.62% 2.77% 1.74% 3.06% 1.98% 1.66%
w/ sales charge -1.04% 0.35% 1.22% 3.21% 1.57% 1.54%

Fund Expense Ratio :

Gross 0.73%

Net 0.73%

Fund Expense Ratio :

Gross 0.73%

Net 0.73%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 04/29/2011
w/o sales charge 1.28% 2.66% 2.00% 3.68% 1.80% 1.72%
Lipper Category Avg. Inflation Protected Bond Funds 0.20% 0.82% -0.40% 2.33% 1.71% -
Bloomberg U.S. TIPS 1-5 Year Index 0.62% 2.77% 1.74% 3.06% 1.98% 1.66%
w/ sales charge -1.04% 0.35% 1.22% 3.21% 1.57% 1.54%

Fund Expense Ratio :

Gross 0.73%

Net 0.73%

Year Fund Returns Bloomberg U.S. TIPS 1-5 Year Index
2023 4.10% 4.44%
2022 -4.85% -3.96%
2021 10.29% 5.53%
2020 5.93% 5.70%
2019 4.86% 5.08%
2018 -1.28% 0.41%
2017 1.33% 0.80%
2016 4.96% 3.13%
2015 -2.22% -0.14%
2014 -5.20% -1.13%
2013 -1.76% -
2012 9.87% -
Year Q1 Q2 Q3 Q4
2024 1.28% - - -
2023 2.70% -1.12% -0.19% 2.71%
2022 -0.49% -4.02% -2.27% 1.94%
2021 4.26% 1.62% 2.27% 1.79%
2020 -14.80% 10.55% 6.13% 5.96%
2019 2.60% 0.41% -1.37% 3.19%
2018 0.40% 0.95% 0.71% -3.28%
2017 0.73% -1.53% 1.13% 1.01%
2016 -0.90% -0.65% 2.45% 4.05%
2015 -0.17% 1.72% -4.68% 1.03%
2014 0.02% 2.20% -2.74% -4.66%
2013 0.51% -3.67% 1.32% 0.15%
2012 5.40% -0.99% 3.16% 2.05%

Growth of $10,000 as of 03/31/2024

NAV Historical Prices

Date Net Asset Value

Portfolio

Portfolio

Rating Assets
Investment Grade Corporate
ABS
CLO
High Yield Corporate
CMBS
MBS
Bank Loans
Other
Cash
Rating Assets
Less than 1 year
1-2.99 years
3-4.99 years
5-6.99 years

Credit Quality Distribution as of 03/28/2024

Rating Assets
Agency
AAA
AA
A
BBB
<BBB
Not Rated

Portfolio Positioning as of 12/31/2023

  • The Fund maintains an allocation to CPI Swaps designed to protect investors’ purchasing power during periods of rising inflation. As inflation expectations decreased, particularly in the back half of the quarter, the Fund’s inflation protection led to a negative impact on performance.
  • The portfolio’s allocation to commercial mortgage-backed securities (CMBS) detracted from relative performance, particularly within single-asset, single borrower (SASB) securities, as concerns about commercial real estate fundamentals continue to weigh on the market. Although valuations are compelling, we remain cautious about certain segments of the market and continued to reduce the portfolio’s overall exposure to CMBS over the period. A significant amount of pressure has been priced into the market this year and we believe our positions are in a strong position to weather future fundamental deterioration. We maintain a high bar to add new positions, with a preference for high quality, liquid names.
  • Over the quarter, the 2-year U.S. Treasury yield moved lower from 5.04% to 4.25%, particularly in the November and December. Therefore, the portfolio’s longer duration relative to the benchmark contributed to relative performance over the period.
  • The Fund’s allocation to investment grade corporate bonds led to a positive impact on relative performance as corporate credit spreads tightened. In particular, an allocation to the Financial sector contributed to relative returns. We remain conservatively positioned in Financials, overweight large U.S. money center banks and European national champion banks, which we feel are particularly attractive in the current environment. The bank debt the portfolio holds is focused on institutions that have strong deposit franchises with robust credit cultures and strong management teams. We increased the portfolio’s exposure to investment grade corporate bonds over the period, primarily within the Financial sector.
  • The portfolio’s multi sector approach provided diversification benefits and contributed to relative returns, particularly within collateralized loan obligations (CLO) and asset-backed securities (ABS). Our CLO allocation is very short in maturity, highly rated, and exhibits low spread volatility. In regard to ABS, we continue to favor high-quality securities within the auto loan and consumer loan sectors, focusing on newly originated loans with superior underwriting. We modestly increased allocations to both sectors over the quarter.
  • The short-term, high yield allocation also contributed to relative performance over the quarter given significant spread compression in below-investment grade credit. Although our allocation to high yield corporate bonds is near historic lows given the reduced availability of yield-to-call names, we continue to seek opportunities in higher quality parts of the market, such as Energy, and idiosyncratic situations associated with mergers or credit events. 

Portfolio Details as of 03/28/2024

Total Net Assets
$917.05 M
Average Effective Duration
3.69 Years
Average Life
1.73 Years
Average Maturity
1.74 Years
Number of Issues
543
Average Yield to Maturity
5.94%

Dividends & Cap Gains

Dividends & Cap Gains

Dividend Payments

Dividend Payments

For
YTD Dividends Paidas of 04/19/2024
$0.11726
Dividend Frequency
Monthly (Daily Accrual)
Record Date Ex-Dividend Date Reinvest & Payable Date Dividend Reinvest Price
Daily Daily 03/31/2024 $0.04006 $11.56
Daily Daily 02/29/2024 $0.03721 $11.51
Daily Daily 01/31/2024 $0.03999 $11.56

Upcoming Dividend Payment Dates

Record Date Ex-Dividend Date Reinvest & Payable Date
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

Sales Charge Schedule as of 04/19/2024

  Sales Charge Dealer's Concession Prices at Breakpoint
Less than $100,000 2.25% 2.00% $11.76
$100,000 to $249,999 1.75% 1.50% $11.70
$250,000 to $499,999 1.25% 1.00% $11.65
Greater than $500,000 0.00% 1.00% $11.50

Expense Ratioas of 03/31/2024

Fund Gross Expense Ratio Fund Net Expense Ratio
0.73% 0.73%

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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