Class A share data as of 09/30/2014.
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Fund Performance
Performance with 2.25% sales charge (at MOP) for Short Duration Income Fund as of 09/30/2014 for the one-year period was 0.53%; three-year, 3.23%; five-year, 3.78%; and 10-year, 4.27%. Expense ratio: 0.58%.
Performance with 2.25% sales charge (at MOP) for Total Return Fund as of 09/30/2014 for the one-year period was 3.05%; three-year, 3.44%; five-year, 4.84%; and 10-year, 5.05%. Expense ratio: Gross: 0.85%; Net: 0.68%. Total Return Fund's net expense ratio takes into account a voluntary expense reimbursement arrangement, which may be modified or terminated at any time, and without which performance would have been lower.
Performance with 2.25% sales charge (at MOP) for Income Fund as of 09/30/2014 for the one-year period was 6.93%; three-year, 6.57%; five-year, 7.40%; and 10-year, 6.37%. Expense ratio: Gross: 0.88%; Net: 0.78%.
Performance data quoted reflect past performance and are no guarantee of future results. Current performance may be higher or lower than the performance 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. You can obtain performance data current to the most recent month-end by calling Lord Abbett at 888-522-2388 or referring to lordabbett.com.
Performance with sales charges reflects the reinvestment of all distributions and includes initial maximum sales charge. Certain purchases of Class A shares without a sales charge are subject to CDSC. The CDSC is not reflected in the performance shown. If sales charges, including any applicable contingent deferred sales charge (CDSC) had been included, performance would have been lower. Please see the prospectus for more details.
Important Information
A Note about Risk:
Lord Abbett Short Duration Income Fund: The Fund is subject to the general risks associated with investing in debt securities, including market, credit, liquidity, and interest rate risk. The value of an investment will change as interest rates fluctuate and in response to market movements. When interest rates fall, the prices of debt securities tend to rise, and when interest rates rise, the prices of debt securities are likely to decline. Debt securities are subject to credit risk, which is the risk that the issuer will fail to make timely payments of interest and principal to the Fund. The Fund may invest in high yield, lower-rated debt securities, sometimes called junk bonds and may involve greater risks than higher rated debt securities. These securities carry increased risks of price volatility, illiquidity, and the possibility of default in the timely payment of interest and principal. The Fund may invest in foreign or emerging market securities, which may be adversely affected by economic, political, or regulatory factors and subject to currency volatility and greater liquidity risk. The Fund may invest in derivatives, which are subject to greater liquidity, leverage, and counterparty risk. These factors can affect Fund performance.
Lord Abbett Total Return Fund: The Fund is subject to the general risks associated with investing in debt securities, including market, credit, liquidity, and interest rate risk. The value of an investment in the Fund will change as interest rates fluctuate in response to market movements. When interest rates rise, the prices of debt securities are likely to decline, and when interest rates fall, the prices of debt securities tend to rise. The Fund may invest in high yield, lower-rated debt securities, sometimes called junk bonds and may involve greater risks than higher rated debt securities. These securities carry increased risks of price volatility, illiquidity, and the possibility of default in the timely payment of interest and principal. The Fund may invest in foreign or emerging market securities, which may be adversely affected by economic, political, or regulatory factors and subject to currency volatility and greater liquidity risk. The Fund may invest in derivatives, which are subject to greater liquidity, leverage, and counterparty risk. These factors can affect Fund performance.
Lord Abbett Income Fund: The Fund is subject to the general risks associated with investing in debt securities, including market, credit, liquidity, and interest rate risk. The value of an investment will change as interest rates fluctuate and in response to market movements. When interest rates fall, the prices of debt securities tend to rise, and when interest rates rise, the prices of debt securities are likely to decline. Debt securities are subject to credit risk, which is the risk that the issuer will fail to make timely payments of interest and principal to the Fund. The Fund may invest in high yield, lower-rated debt securities, sometimes called junk bonds, and may involve greater risks than higher-rated debt securities. These securities carry increased risks of price volatility, illiquidity, and the possibility of default in the timely payment of interest and principal. The Fund may invest in foreign or emerging market securities, which may be adversely affected by economic, political, or regulatory factors and subject to currency volatility and greater liquidity risk. The Fund may invest in derivatives, which are subject to greater liquidity, leverage, and counterparty risk. The Fund may also invest in convertible securities and senior loans, which are subject to increased credit and liquidity risks. These factors can affect Fund performance.
Dividend yield is a financial ratio that shows how much a mutual fund pays out in dividends each year relative to its Net Asset Value (NAV). The dividend yield is calculated by annualizing the last dividend and dividing it by the fund's NAV.
The 30-day standardized yield is an estimate of a mutual fund's net investment income measured over a 30-day period. It is expressed as an annual percentage rate using a method of calculation adopted by the Securities and Exchange Commission (SEC). In absence of the fee waiver, 30-day standardized yield would have been lower. Yields for other share classes will vary.
Effective Duration: The change in the value of a fixed-income security that will result from a 1% change in interest rates, taking into account anticipated cash flow fluctuations from mortgage prepayments, puts, adjustable coupons, and potential call dates. Duration is expressed as a number of years, and generally, the larger a duration, the greater the interest rate risk or reward for a portfolio's underlying bond prices. Where applicable, securities, such as common or preferred stock, convertible bonds and convertible preferred stock, ETFs, and ADRs and futures, are excluded from these calculations.
Expense ratio details: Reflects the Short Duration Income Fund expenses, the Total Return Fund expenses, and the Income Fund expenses and are subject to change. Fund expenses may fluctuate with market volatility. A substantial reduction in Fund assets (since its most recently completed fiscal year), whether caused by market conditions or significant redemptions or both, will likely cause total operating expenses (as a percentage of Fund assets) to become higher than those shown. The Total Return Fund's net expense ratio takes into account a voluntary expense reimbursement arrangement, which may be modified or terminated at any time and without which performance would have been lower.
Each Fund's portfolio is actively managed and may change significantly over time.
This material must be accompanied or preceded by the Fund's current prospectus or summary prospectus. The prospectus contains important information about the Fund, including its investment objectives, risks, charges, and ongoing expenses. Read the prospectus carefully before you invest.
Neither diversification nor asset allocation can guarantee a profit or protect against loss in declining markets.