Fund Goal
The fund seeks to deliver high current income and potential total return over a full market cycle by investing in a concentrated number of complex and stressed corporate debt holdings with a focus on downside mitigation.
Investment Approach
- Leverages the firms multi-decade experience managing leverage credit, specifically corporate debt through high yield bonds and bank loans
- Identifies mispriced investments opportunities created by highly complex businesses and corporate structures or dislocated situations across sectors and industries
- Focuses on debt instruments secured by collateral or in a senior position, providing a potential margin of safety
Important Risks to Consider
Fund Risks to Consider: Investment in the Fund involves significant risks and there can be no assurance that the Fund’s investment objectives will be achieved. There may occur potential or actual conflicts of interest involving Lord, Abbett & Co. LLC (the “Investment Manager”) and the Fund and its investments. The Fund is subject to the general risks associated with investing in debt securities, including market, credit, liquidity, and interest rate risk. The Fund may invest in high-yield, lower-rated securities, sometimes called junk bonds. 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 debt securities of stressed and distressed issuers as well as in defaulted securities and debtor-in-possession financings, all of which may be considered Special Situations. Distressed and defaulted instruments generally present the same risks as investment in below investment grade instruments. However, in most cases, these risks are of a greater magnitude because of the uncertainties of investing in an issuer undergoing financial distress. 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. Because of the risks associated with the Fund’s ability to invest in high yield securities, loans and related instruments and mortgage-related and other asset-backed instruments, foreign (including emerging market) securities (and related exposure to foreign currencies), and the Fund’s ability to use leverage, an investment in the Fund should be considered speculative and involving a high degree of risk, including the risk of a substantial loss of investment. In addition, as a new fund, there can be no assurance that the Fund will reach or maintain a sufficient asset size to effectively implement its investment strategy, and until the Fund achieves sufficient scale, its investors may experience higher Fund expenses than would be experienced by investors of a fund with a larger asset base.
A prospective investor should not acquire shares of the Fund if the investor anticipates that it will have a need for the funds contributed to the Fund prior to the times that redemptions are permitted. An investment in the Fund should be viewed as a long term investment.
Legal Documents, Dividend, and Tax Information
The links below will provide you access to a prospectus, supplements, and KIIDs documents:
The Annual Report and Audited Financial Statements are provided for Lord Abbett Global Funds II, for which the Lord Abbett Special Situations Income Fund is a portfolio of assets (the “Special Situations Income Sub-Fund”). As of current date, the Special Situations Income Sub-Fund has not launched, and its Annual Report and Audited Financial Statements are not yet reflected.