LISAX | Intermediate Tax Free Fund Class A | Lord Abbett

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Intermediate Tax Free Fund

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Summary

Summary

What is the Intermediate Tax Free Fund?

The Fund seeks to deliver a high level of income exempt from federal taxation by investing primarily in intermediate-term investment grade municipal bonds.

 

Yield

Dividend Yield 1 as of 06/24/2022  

w/o sales charge 2.27%
w/ sales charge 2.22%

30-Day Standardized Yield 2 as of 05/31/2022  

2.64%

Fund Basicsas of 05/31/2022

Total Net Assets
$5.54 B
Inception Date
06/30/2003
Dividend Frequency
Monthly (Daily Accrual)
Number of Holdings
1201
Minimum Initial Investment
$1,000+

Expense Ratioas of 05/31/2022

Fund Expense Ratio :

0.70%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 06/30/2003
w/o sales charge -8.54% -8.08% -0.08% 1.38% 2.10% 3.23%
Lipper Category Avg. Intermediate Municipal Debt Funds -6.67% -6.16% 0.38% 1.36% 1.82% -
Bloomberg 1-15 Year Municipal Index -6.02% -5.62% 0.54% 1.57% 2.16% 3.30%
w/ sales charge -10.59% -10.13% -0.82% 0.91% 1.86% 3.10%

Fund Expense Ratio :

0.70%

Fund Expense Ratio :

0.70%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 06/30/2003
w/o sales charge -6.67% -4.69% 1.21% 2.21% 2.50% 3.37%
Lipper Category Avg. Intermediate Municipal Debt Funds -5.49% -3.87% 1.29% 1.99% 2.12% -
Bloomberg 1-15 Year Municipal Index -5.33% -4.20% 1.26% 2.13% 2.40% 3.37%
w/ sales charge -8.76% -6.84% 0.45% 1.74% 2.26% 3.24%

Fund Expense Ratio :

0.70%

The Muni Quarterly

The Muni Quarterly offers insights from our analysts on key topics for municipal bond investors, along with essential market information.

Sector Assets
Transportation
IDR/PCR
Healthcare/Hospital
GO Local
GO State
Lease
Special Tax
Education
Power
Pre-Refunded
Water & Sewer
Housing
Other
VRDN
Resource Recovery
Treasury
Maturity Assets
<1 Year
1-3 Years
3-5 Years
5-7 Years
7-9 Years
9-12 Years
12-15 Years
15-18 Years
18-25 Years
25-30 Years
30+ Years

CREDIT QUALITY DISTRIBUTION as of 05/31/2022 View Portfolio

Rating Assets
AAA
AA
A
BBB
< BBB
Not Rated

INVESTMENT TEAM

Daniel S. Solender
Daniel S. Solender, CFA

Partner & Director

35 Years of Industry Experience

Daniel T. Vande Velde
Daniel T. Vande Velde

Partner & Portfolio Manager

32 Years of Industry Experience

Daniel S. Solender
Christopher T. English, CFA

Portfolio Manager

12 Years of Industry Experience

Supported By 15 Investment Professionals with 14 Years Avg. Industry Experience

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Performance

Performance

Dividend Yield 1 as of 06/24/2022  

w/o sales charge 2.27%
w/ sales charge 2.22%

30-Day Standardized Yield 2 as of 05/31/2022  

  Subsidized5 Un-Subsidized6
w/o sales charge 2.64% 2.64%

Fund Expense Ratio :

0.70%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 06/30/2003
w/o sales charge -8.54% -8.08% -0.08% 1.38% 2.10% 3.23%
Lipper Category Avg. Intermediate Municipal Debt Funds -6.67% -6.16% 0.38% 1.36% 1.82% -
Bloomberg 1-15 Year Municipal Index -6.02% -5.62% 0.54% 1.57% 2.16% 3.30%
w/ sales charge -10.59% -10.13% -0.82% 0.91% 1.86% 3.10%

Fund Expense Ratio :

0.70%

Fund Expense Ratio :

0.70%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 06/30/2003
w/o sales charge -6.67% -4.69% 1.21% 2.21% 2.50% 3.37%
Lipper Category Avg. Intermediate Municipal Debt Funds -5.49% -3.87% 1.29% 1.99% 2.12% -
Bloomberg 1-15 Year Municipal Index -5.33% -4.20% 1.26% 2.13% 2.40% 3.37%
w/ sales charge -8.76% -6.84% 0.45% 1.74% 2.26% 3.24%

Fund Expense Ratio :

0.70%

Year Fund Returns Bloomberg 1-15 Year Municipal Index
2021 2.08% 0.87%
2020 4.15% 4.73%
2019 7.61% 6.44%
2018 1.13% 1.58%
2017 5.08% 4.33%
2016 -0.64% 0.01%
2015 2.86% 2.83%
2014 8.35% 6.36%
2013 -2.82% -1.05%
2012 6.40% 4.74%
2011 9.87% -
2010 3.49% -
2009 12.09% -
2008 -0.40% -
2007 3.44% -
2006 3.91% -
2005 1.50% -
2004 2.29% -
2003 1.16% -
Year Q1 Q2 Q3 Q4 Yearly Returns
2022 -6.67% - - - -10.54%
2021 -0.04% 2.04% -0.58% 0.65% 2.08%
2020 -3.08% 3.34% 1.21% 2.74% 4.15%
2019 2.98% 2.34% 1.55% 0.55% 7.61%
2018 -1.04% 1.02% -0.01% 1.17% 1.13%
2017 1.70% 1.84% 1.22% 0.24% 5.08%
2016 1.60% 2.28% 0.05% -4.43% -0.64%
2015 1.14% -1.15% 1.36% 1.50% 2.86%
2014 3.10% 2.37% 1.48% 1.17% 8.35%
2013 0.64% -3.29% -0.16% -0.01% -2.82%
2012 1.53% 1.78% 2.09% 0.85% 6.40%
2011 0.39% 3.79% 2.98% 2.40% 9.87%
2010 1.75% 1.95% 3.37% -3.48% 3.49%
2009 4.33% 1.79% 6.55% -0.94% 12.09%
2008 0.77% 0.04% -1.49% 0.31% -0.40%
2007 0.71% -0.77% 2.34% 1.14% 3.44%
2006 -0.16% -0.21% 3.44% 0.82% 3.91%
2005 -0.88% 2.24% -0.42% 0.58% 1.50%
2004 1.14% -2.23% 2.98% 0.45% 2.29%
2003 - - 0.16% 0.99% 1.16%

Growth of $10,000 as of 07/31/2021

NAV Historical Prices

Date Net Asset Value

Portfolio

Portfolio

PORTFOLIO BREAKDOWN as of 05/31/2022

Sector Assets
Transportation
IDR/PCR
Healthcare/Hospital
GO Local
GO State
Lease
Special Tax
Education
Power
Pre-Refunded
Water & Sewer
Housing
Other
VRDN
Resource Recovery
Treasury

PORTFOLIO BREAKDOWN as of 05/31/2022

Maturity Assets
<1 Year
1-3 Years
3-5 Years
5-7 Years
7-9 Years
9-12 Years
12-15 Years
15-18 Years
18-25 Years
25-30 Years
30+ Years

PORTFOLIO BREAKDOWN as of 05/31/2022

Rating Assets
NY
IL
CA
NJ
TX
PA
FL
GA
AL
CT
Puerto Rico
AZ
OH
LA
KY
TN
MA
IN
WI
VA
MD
MO
CO
MI
NV
UT
WA
NC
HI
OR
DE
SC
MN
MS
DC
RI
NE
OK
IA
NH
AR
WV
ID
NM
AK
VT
KS
Other U.S. Territories
ND
SD

Credit QUALITY DISTRIBUTION as of 05/31/2022

Rating Assets
AAA
AA
A
BBB
< BBB
Not Rated

Portfolio Positioning as of 3/31/2022

  • The fundamental backdrop of the municipal market is currently strong, and credit may continue to strengthen into the near future. Almost all municipal sectors have stable or positive outlooks by the credit rating agencies as the market continues to be supported by the robust fiscal spending over the past two years, a better-than-expected economic recovery from the pandemic and strong tax revenue growth. In terms of fiscal spending, it has been estimated that approximately $1 trillion has been passed down to state and local governments as a result of pandemic relief spending by the Federal government. Regarding tax revenues, according to the National Conference of State Legislatures, it is anticipated that half of states will see revenue figures that surpass their original forecasts for fiscal year 2022. More specifically, increased sales tax revenue streams may be powered by higher consumer demand as well as inflationary pressures. Similarly, in the longer term, real estate tax revenues may be pushed up by inflation as well.
  • Given this strong credit backdrop, we are positive on credit risk and the Fund is overweight lower-rated, investment grade bonds. Additionally, while primarily invested in higher quality bonds, the Fund is modestly overweight non-investment grade bonds relative to its benchmark due to relatively attractive risk-adjusted returns.
  • From a sector perspective, we currently favor the Transportation, Industrial Development and Health Care sectors.
  • While the strategy’s longer duration relative to the benchmark has led to underperformance in the short term, we expect this positioning to support performance over the long term for various reasons. First, the municipal yield curve remains upward sloping, even given the recent inversion of the Treasury yield curve. We are regularly monitoring the overall shape of the curve in an effort to identify the steepest portions to optimize total return. As we typically do not hold bonds to maturity, we are able exploit this steepness through strategies such as yield curve roll down to generate capital appreciation along with tax free income for our clients. Strategies such as this may require positioning further out on the yield curve relative to the benchmark. Additionally, even considering the underperformance of longer-dated bonds in the last quarter, over the long term, intermediate and long-dated bonds have outperformed bonds on the shorter end of the curve. We expect this trend to remain intact going forward, while there will be periods of short-term volatility as seen this quarter. Of note, we continue to maintain the strategy’s duration within a tight band of the benchmark.
  • The current weakness in demand has largely been tied to investor concerns over rising Treasury yields and, to some extent, tax loss selling. The current outflow cycle may endure over the near term should Treasury yields continue to increase, but we expect demand to recover once the market volatility eases. In terms of tax loss selling, some investors have been exiting municipal bond positions to recognize losses in an effort to offset gains achieved in more profitable investments. We expect these tax loss pressures to subside in the near term. While tax exempt supply has been roughly in line with 2021, it would be a negative for the market if supply were to pick up in the near term in concert with continuing outflows.
  • The market turbulence seen over the last quarter, while painful in the short term, has brought opportunity. With the significant fall in prices since the start of the year, not only do we have access to bonds that were much harder to buy in the strong market environment seen last year, but we can enter these positions at more attractive yields compared to just three months ago at the end of 2021. Additionally, Muni/Treasury ratios have started to normalize from the rich levels seen in 2021 and ratios at the longer end of the curve are starting to approach ‘cheaper’ levels compared to history. 

Portfolio Details as of 05/31/2022

Total Net Assets
$5.54 B
Number of Issues
1201
Average Coupon
4.5%
Average Effective Maturity
10.1 Years
Average Effective Duration
5.7 Years