Fund Review as of 03/31/2016

The Lord Abbett Multi-Asset Income Fund returned 0.51%, reflecting the performance at the net asset value (NAV) of Class A shares, with all distributions reinvested, for the three-month period ended March 31, 2016, compared to the benchmark, the 50% Barclays U.S. Aggregate Bond Index1/25% BofA Merrill Lynch U.S. High Yield Constrained Index2/15% Russell 1000® Index3/10% MSCI EAFE Index with Gross Dividends,4 which returned 2.28%. The Fund’s average annual total returns, which reflect performance at the maximum 2.25% sales charge applicable to Class A share investments and include the reinvestment of all distributions, as of March 31, 2016, are: one year: -6.99%; five years: 3.59%; and 10 years: 4.90%. Expense ratio, gross: 1.13%, and net: 1.01%.

Performance data quoted represent past performance, which is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The investment return and principal value of an investment in the Fund will fluctuate so that shares, on any given day or when redeemed, may be worth more or less than their original cost. To obtain performance data current to the most recent month-end, call Lord Abbett at 888-522-2388 or visit us at

At the asset-allocation level, the Fund’s holdings in short duration bonds detracted from relative performance, as the category underperformed the Fund’s benchmark. Short duration fixed income securities were negatively affected by volatility in short-term yields associated with the U.S. Federal Reserve’s (Fed) decision to raise interest rates at the end of the 2015. An underweight exposure to non-U.S. developed market currencies also hurt relative performance, as those currencies generally strengthened against the U.S. dollar during the period.

Allocations to mid-cap equities contributed to performance, as this category outperformed the Fund’s benchmark. Security selection within this group drove relative outperformance during the period. In addition, exposure to emerging market (EM) currencies helped relative performance. After a difficult start to 2016, EM currencies rallied in the second half of the quarter, backed by improving sentiment regarding the Chinese economy, firming commodity prices and supportive central bank policies.

Please refer to under the “Portfolio” tab for a complete list of holdings of the Fund, including the securities discussed above.


Risk assets stumbled out of the gate in 2016, with U.S. stocks recording their worst-ever start to a calendar year.  Uncertainty regarding China’s currency policies, plummeting oil prices, and the specter of Fed tightening contributed to a growth scare that sent global stocks down 11% by early February.  A reversal in oil prices and renewed monetary accommodation, however, fueled a powerful rebound in equities worldwide, which ended the quarter with only fractional losses. 

Despite unprecedented monetary stimulus, global economic growth remains tepid and inflation continues to fall short of expectations in most countries. This dynamic is leading investors to focus more on the risks of premature reductions in monetary stimulus instead of potential distortions in asset pricing or long-run inflation expectations that could arise from protracted stimulus programs.

While maintaining monetary stimulus may prevent asset prices from falling sharply, positive economic growth surprises and earnings revisions are needed to drive stock prices substantially higher. As the first quarter ended, it was by no means clear that economic and corporate fundamentals had improved enough to encourage an extension of the global risk asset rally. 

Effective November 29, 2013, the Lord Abbett Diversified Income Strategy Fund changed its name to Lord Abbett Multi-Asset Income Fund.

The Fund invests principally in the underlying funds. The percentages are based on individual securities owned in one or more of the underlying funds. The Fund’s portfolio is actively managed and, therefore, its holdings and the weightings of a particular issuer or a particular sector as a percentage of portfolio assets may change significantly over time. Sectors may include many industries.  The mention of specific portfolio holdings is for information only.  It does not constitute a recommendation or an offer for a particular security or fund, nor should it be taken as a solicitation or recommendation to buy or sell securities or other investments.

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