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Short Duration Income Fund

Summary

Summary

What is the Short Duration Income Fund?

The Fund seeks to deliver a high level of current income consistent with the preservation of capital by investing in a variety of short maturity debt securities including, corporate bonds, U.S. government securities, and mortgage- and other asset-backed debt securities.
 

EXPERIENCED, TENURED TEAM

Managed through collaboration among 40+ investment professionals in portfolio management, credit research, and trading.

STRATEGIC, FLEXIBLE DESIGN

Pursues an agile, multi-sector approach designed to provide a higher yield than a typical short duration strategy, and a lower duration than a traditional core bond strategy.

STRONG PERFORMANCE

Has offered a track record of solid performance in many market environments. 

Yield

Dividend Yield 1 as of 07/06/2020  

w/o sales charge 3.03%
w/ sales charge 2.96%

30-Day Standardized Yield 2 as of 05/31/2020  

2.61%

Expense Ratioas of 05/31/2020

Fund Basicsas of 05/29/2020

Total Net Assets
$51.50 B
Inception Date
11/04/1993
Dividend Frequency
Monthly (Daily Accrual)
Number of Holdings
1664
Minimum Initial Investment
$1,500+

Fund Expense Ratio :

0.60%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 11/04/1993
w/o sales charge 0.15% 1.64% 2.53% 2.39% 2.95% 4.06%
Lipper Category Avg. Short Investment Grade Debt Funds - - - - - -
ICE BofA 1-3 Year U.S. Corporate Index 2.64% 4.58% 3.42% 2.80% 2.65% 4.51%
w/ sales charge -2.18% -0.71% 1.75% 1.93% 2.70% 3.97%

Fund Expense Ratio :

0.60%

Fund Expense Ratio :

0.60%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 11/04/1993
w/o sales charge 0.15% 1.64% 2.53% 2.39% 2.95% 4.06%
Lipper Category Avg. Short Investment Grade Debt Funds - - - - - -
ICE BofA 1-3 Year U.S. Corporate Index 2.64% 4.58% 3.42% 2.80% 2.65% 4.51%
w/ sales charge -2.18% -0.71% 1.75% 1.93% 2.70% 3.97%

Fund Expense Ratio :

0.60%

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Type Assets
Investment Grade Corporate
ABS
CMBS
High Yield Corporate
Bank Loans
U.S. Government Related
MBS
Sovereign
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 05/29/2020 View Portfolio

Rating Assets
U.S. Treasury
Agency
AAA
AA
A
BBB
<BBB
Not Rated

INVESTMENT TEAM

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

Partner & Portfolio Manager

22 Years of Industry Experience

Kewjin Yuoh
Kewjin Yuoh

Partner & Portfolio Manager

26 Years of Industry Experience

Steven F. Rocco
Steven F. Rocco, CFA

Partner & Director of Taxable Fixed Income

19 Years of Industry Experience

Robert A. Lee
Robert A. Lee

Partner & Chief Investment Officer

29 Years of Industry Experience

Supported By 61 Investment Professionals with 16 Years Avg. Industry Experience

Contact a Representative

To contact your representative, enter your zip code and select your channel below.

Performance

Performance

Dividend Yield 1 as of 07/06/2020  

w/o sales charge 3.03%
w/ sales charge 2.96%

30-Day Standardized Yield 2 as of 05/31/2020  

  Subsidized3 Un-Subsidized4
w/o sales charge 2.61% 2.61%

Fund Expense Ratio :

0.60%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 11/04/1993
w/o sales charge 0.15% 1.64% 2.53% 2.39% 2.95% 4.06%
Lipper Category Avg. Short Investment Grade Debt Funds - - - - - -
ICE BofA 1-3 Year U.S. Corporate Index 2.64% 4.58% 3.42% 2.80% 2.65% 4.51%
w/ sales charge -2.18% -0.71% 1.75% 1.93% 2.70% 3.97%

Fund Expense Ratio :

0.60%

Fund Expense Ratio :

0.60%

YTD 1-YR 3-YR 5-YR 10-YR Since Inception 11/04/1993
w/o sales charge 0.15% 1.64% 2.53% 2.39% 2.95% 4.06%
Lipper Category Avg. Short Investment Grade Debt Funds - - - - - -
ICE BofA 1-3 Year U.S. Corporate Index 2.64% 4.58% 3.42% 2.80% 2.65% 4.51%
w/ sales charge -2.18% -0.71% 1.75% 1.93% 2.70% 3.97%

Fund Expense Ratio :

0.60%

Year Fund Returns ICE BofA 1-3 Year U.S. Corporate Index
2019 5.42% 5.43%
2018 1.23% 1.62%
2017 2.29% 1.91%
2016 4.01% 2.39%
2015 0.43% 1.01%
2014 1.73% 1.19%
2013 1.62% 1.78%
2012 6.64% 4.49%
2011 3.16% 1.76%
2010 6.38% 4.86%
2009 16.97% -
2008 -1.09% -
2007 5.89% -
2006 3.54% -
2005 0.92% -
2004 1.18% -
2003 1.79% -
2002 7.60% -
2001 6.54% -
2000 9.18% -
Year Q1 Q2 Q3 Q4 Yearly Returns
2020 -5.42% 5.89% - - 0.20%
2019 2.17% 1.66% 0.66% 0.83% 5.42%
2018 -0.03% 0.26% 0.74% 0.25% 1.23%
2017 0.72% 0.69% 0.68% 0.18% 2.29%
2016 1.24% 1.69% 0.98% 0.04% 4.01%
2015 0.97% 0.52% -0.40% -0.65% 0.43%
2014 0.91% 1.15% -0.15% -0.17% 1.73%
2013 0.69% -0.82% 0.95% 0.81% 1.62%
2012 2.43% 0.79% 2.08% 1.19% 6.64%
2011 1.08% 1.09% -0.84% 1.81% 3.16%
2010 2.24% 1.08% 2.60% 0.33% 6.38%
2009 4.07% 5.55% 4.90% 1.51% 16.97%
2008 1.13% 0.93% -1.59% -1.53% -1.09%
2007 1.48% 0.09% 2.00% 2.21% 5.89%
2006 0.28% 0.27% 2.19% 0.76% 3.54%
2005 -0.47% 1.37% -0.24% 0.27% 0.92%
2004 1.43% -2.02% 1.66% 0.15% 1.18%
2003 0.83% 1.04% -0.31% 0.23% 1.79%
2002 0.39% 2.64% 3.25% 1.13% 7.60%
2001 2.35% 0.94% 3.51% -0.39% 6.54%
2000 1.63% 2.09% 2.48% 2.67% 9.18%
1999 0.89% 0.45% 0.97% 0.50% 2.81%
1998 1.15% 1.60% 3.44% 0.25% 6.56%
1997 0.03% 2.40% 2.40% 1.92% 6.90%
1996 -1.22% -0.43% 1.01% 1.96% 1.30%
1995 3.33% 2.82% 1.24% 2.37% 10.11%
1994 -2.85% -1.16% 0.40% 0.10% -3.48%
1993 - - - - 0.47%

Growth of $10,000 as of 06/30/2020

NAV Historical Prices

Date Net Asset Value

Portfolio

Portfolio

Type Assets
Investment Grade Corporate
ABS
CMBS
High Yield Corporate
Bank Loans
U.S. Government Related
MBS
Sovereign
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 05/29/2020

Rating Assets
U.S. Treasury
Agency
AAA
AA
A
BBB
<BBB
Not Rated

Portfolio Positioning as of 3/31/2020

  • Over the quarter, we reduced the portfolio’s allocation to securitized products – both ABS and CMBS. ABS held up relatively well versus corporate credit, therefore we reduced our allocation to the asset class in order to take advantage of dislocations in other areas of the market. Regarding CMBS, we reduced our position to become more in line with the overall market and allocated to areas of the market which we believe will receive more direct support from the Fed.
  • We reallocated proceeds from the sales of ABS and CMBS, and increased the portfolio’s allocation to investment-grade corporate floaters and modestly to bank loans. These asset classes are areas of the market that have experienced the largest dislocations, caused largely by outflows, and therefore are providing a spread pickup versus like-rated securities. Also, importantly, the Fed will be able to buy corporate bonds for the first time ever, acting as a lender in the primary market combined with the ability to directly target spreads by buying up to 10% of issuance in the secondary market which should act as a tailwind for corporate floaters.
  • We continue to favor high quality ABS that are backed by credit cards and auto loans, and we have avoided areas of the market that have been more directly exposed to the impact of the coronavirus (such as container and aircraft ABS). Also, the details of an expanded unemployment program in the stimulus bill give us confidence that high quality consumer exposed ABS are still healthy credits.

Portfolio Details as of 05/29/2020

Total Net Assets
$51.50 B
Number of Issues
1664
Average Coupon
3.27%
Average Life
2.6 Years
Average Maturity
2.6 Years
Average Effective Duration
1.98 Years