LSYNX | Short Duration High Yield Fund Class F3 | Lord Abbett
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(as of 12/05/2015)

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    Short Duration High Yield Fund

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    Summary

    Summary

    What is the Short Duration High Yield Fund?

    The Fund’s investment objective is to seek a high current income and the opportunity for capital appreciation to produce a high total return.

    Yield

    Average Yield to Maturity as of 03/31/2025

    8.84%

    Distribution Yield as of 04/25/2025  

    8.74%

    30-Day Standardized Yield 1 as of 03/31/2025  

      Subsidized2 Un-Subsidized3
    w/o sales charge 7.75% 7.71%

    Fund Basicsas of 03/31/2025

    Total Net Assets
    $8.45 B
    Inception Date
    05/01/2020
    Dividend Frequency
    Monthly
    Fund Gross Expense Ratio
    0.43%
    Fund Net Expense Ratio
    0.37%
    Number of Holdings
    694

    Fund Expense Ratio :

    Gross 0.43%

    Net 0.37%

    YTD 1-YR 3-YR 5-YR 10-YR Since Inception 04/30/2020
    YTD
    1-YR
    3-YR
    5-YR
    10-YR
    Since Inception 04/30/2020
    w/o sales charge 0.30% 7.37% 5.93% -10000.0% -10000.0% 7.18%
    Lipper Category Avg. Short High Yield Funds 0.77% 6.46% 4.80% -10000.0% -10000.0% -10000.0%
    ICE BofA HY US Corp Cash Pay BB-B 1-5Yrs USD Index 1.07% 6.84% 5.41% -10000.0% -10000.0% 6.52%
    w/ sales charge 0.30% 7.37% 5.93% -10000.0% -10000.0% 7.18%

    Fund Expense Ratio :

    Gross 0.43%

    Net 0.37%

    Fund Expense Ratio :

    Gross 0.43%

    Net 0.37%

    YTD 1-YR 3-YR 5-YR 10-YR Since Inception 04/30/2020
    YTD
    1-YR
    3-YR
    5-YR
    10-YR
    Since Inception 04/30/2020
    w/o sales charge 0.30% 7.37% 5.93% -10000.0% -10000.0% 7.18%
    Lipper Category Avg. Short High Yield Funds 0.77% 6.46% 4.80% -10000.0% -10000.0% -10000.0%
    ICE BofA HY US Corp Cash Pay BB-B 1-5Yrs USD Index 1.07% 6.84% 5.41% -10000.0% -10000.0% 6.52%

    Fund Expense Ratio :

    Gross 0.43%

    Net 0.37%

    INVESTMENT TEAM

    Steven F. Rocco
    Steven F. Rocco, CFA

    Partner & Co-Head of Taxable Fixed Income

    24 Years of Industry Experience

    Christopher Gizzo
    Christopher Gizzo, CFA

    Partner, Deputy Director of Leveraged Credit

    17 Years of Industry Experience

    Supported By 88 Investment Professionals with 18 Years Avg. Industry Experience

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    Performance

    Performance

    Average Yield to Maturity as of 03/31/2025

    8.84%

    Distribution Yield as of 04/25/2025  

    8.74%

    30-Day Standardized Yield 1 as of 03/31/2025  

      Subsidized2 Un-Subsidized3
    w/o sales charge 7.75% 7.71%

    Fund Expense Ratio :

    Gross 0.43%

    Net 0.37%

    YTD 1-YR 3-YR 5-YR 10-YR Since Inception 04/30/2020
    YTD
    1-YR
    3-YR
    5-YR
    10-YR
    Since Inception 04/30/2020
    w/o sales charge 0.30% 7.37% 5.93% -10000.0% -10000.0% 7.18%
    Lipper Category Avg. Short High Yield Funds 0.77% 6.46% 4.80% -10000.0% -10000.0% -10000.0%
    ICE BofA HY US Corp Cash Pay BB-B 1-5Yrs USD Index 1.07% 6.84% 5.41% -10000.0% -10000.0% 6.52%
    w/ sales charge 0.30% 7.37% 5.93% -10000.0% -10000.0% 7.18%

    Fund Expense Ratio :

    Gross 0.43%

    Net 0.37%

    Fund Expense Ratio :

    Gross 0.43%

    Net 0.37%

    YTD 1-YR 3-YR 5-YR 10-YR Since Inception 04/30/2020
    YTD
    1-YR
    3-YR
    5-YR
    10-YR
    Since Inception 04/30/2020
    w/o sales charge 0.30% 7.37% 5.93% -10000.0% -10000.0% 7.18%
    Lipper Category Avg. Short High Yield Funds 0.77% 6.46% 4.80% -10000.0% -10000.0% -10000.0%
    ICE BofA HY US Corp Cash Pay BB-B 1-5Yrs USD Index 1.07% 6.84% 5.41% -10000.0% -10000.0% 6.52%

    Fund Expense Ratio :

    Gross 0.43%

    Net 0.37%

    Year Fund Returns ICE BofA HY US Corp Cash Pay BB-B 1-5Yrs USD Index
    Year
    Fund Returns
    ICE BofA HY US Corp Cash Pay BB-B 1-5Yrs USD Index
    2024 9.46% 7.21%
    2023 12.27% 11.66%
    2022 -5.54% -5.39%
    2021 5.83% 4.87%
    Year Q1 Q2 Q3 Q4
    Year
    Q1
    Q2
    Q3
    Q4
    2025 0.30% -10000.0% -10000.0% -10000.0%
    2024 2.26% 1.55% 4.20% 1.17%
    2023 2.72% 2.13% 1.32% 5.63%
    2022 -2.05% -7.62% 0.54% 3.82%
    2021 2.02% 2.08% 0.78% 0.83%

    NAV Historical Prices

    Date Net Asset Value

    Portfolio

    Portfolio

    Rating Assets
    High Yield Corporate
    Bank Loans
    Investment Grade Corporate
    Convertible Bonds
    MBS
    CMBS
    Sovereign
    ABS
    U.S. Government Related
    Other
    Cash
    Rating 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 03/31/2025

    Rating Assets
    Treasury
    Agency
    AAA
    A
    BBB
    BB
    B
    CCC
    <CCC
    Not Rated

    Portfolio Positioning as of 12/31/2024

    • We continue to focus on investments with higher carry. With high yield spreads south of 300 basis points, and the direction of interest rates still largely uncertain, we continue to target investments that offer higher levels of carry. We added to several positions over the month, specifically in lower-rated CCCs, as economic data continued to be resilient. Within this rating cohort, however, we have prioritized more idiosyncratic risk opportunities as opposed to adding broader risk exposure. To fund these purchases, we reduced allocations to longer-duration BBs and Single Bs that we viewed as offering limited relative value.

    • The Fund’s sector exposure remains balanced. The Fund is overweight the Energy and Transportation sectors, which finished the quarter as the top sector overweights. In Energy, we are constructive in the sector given resilient economic growth with potential for higher inflation and commodity prices. As for Transportation, we favor airline and air travel companies where fundamentals continue to be strong. However, we reduced the Fund’s overweight in Basic Industry, specifically in Chemicals, Metals and Mining which carry exposure to weaker economies to Europe and China as well as Building Materials given their sensitivity towards higher rates. The Fund’s top sector underweights remained Media, where companies have excessive levels of leverage, and Consumer Goods and Services, which is driven by relative valuations.

    • We increased floating rate exposure within the Fund. We generally believe that select exposures to non-high yield sectors can offer attractive risk-reward opportunities, potential portfolio diversification benefits, and avenues for liquidity. The Fund has the flexibility to toggle allocations to off-benchmark asset classes, such as bank loans and convertible bonds. As bond yields moved higher over the quarter, we added floating rate exposure to the Fund, specifically through bank loans, given their lower sensitivity to interest rate sensitivity relative to high yield.

    • We remain constructive on short duration high yield credit amid a supportive macroeconomic environment and strong issuer fundamentals. We remain optimistic about the potential for high yield credit to deliver solid returns in 2025. Notably, spread valuations continue to be close to historic tights, but our view is that these valuation levels are supported given the current fundamental strength and higher-quality ratings mix among high yield issuers. Additionally, a supportive macroeconomic environment in the U.S., and accommodative financial conditions should help translate into lower issuer defaults in the year ahead. A high starting yield and lower expected default environment in 2025 should bode well for the asset class, which can be a strategic allocation for investors looking for income. Key risk factors to watch remain a resurgence of inflation that upends the narrative accommodative monetary policy, a pivot by issuers to more non-credit-friendly uses of debt finance, and a macro or policy driven spike of interest rate volatility that would leave investors flipping to defensive with less focus on credit. We look to be dynamic with our positioning in the Fund given this potential for increased market fluctuations.

    PORTFOLIO DETAILS as of 03/31/2025

    Total Net Assets
    $8.45 B
    Average Effective Duration
    2.25 Years
    Average Maturity
    2.96 Years
    Number of Issues
    694
    Average Yield to Maturity
    8.84%

    Dividends & Cap Gains

    Dividends & Cap Gains

    Dividend Payments

    Dividend Payments

    For
    YTD Dividends Paidas of 04/25/2025
    $0.20149
    Dividend Frequency
    Monthly (Daily Accrual)
    Record Date Ex-Dividend Date Reinvest & Payable Date Dividend Reinvest Price
    Daily Daily 03/31/2025 $0.06960 $9.70
    Daily Daily 02/28/2025 $0.06446 $9.92
    Daily Daily 01/31/2025 $0.06742 $9.92

    Upcoming Dividend Payment Dates

    Record Date Ex-Dividend Date Reinvest & Payable Date
    Daily Daily 04/30/2025
    Daily Daily 05/31/2025
    Daily Daily 06/30/2025
    Daily Daily 07/31/2025
    Daily Daily 08/31/2025
    Daily Daily 09/30/2025
    Daily Daily 10/31/2025
    Daily Daily 11/30/2025
    Daily Daily 12/31/2025

    Capital Gains Distributions

    For
    Record Date Reinvest & Payable Date Long-term Short-term * Total Reinvest Price
    12/16/2024 12/17/2024 $0.0009 $0.0476 $0.0485 $9.92

    Fees & Expenses

    Fees & Expenses

    Expense Ratioas of 03/31/2025

    Fund Gross Expense Ratio 0.43%
    Fund Net Expense Ratio 0.37%

    Fund Documents

    Fund Documents

    0Documents selected
    Portfolio Holdings 1Q
    Publish Date:11/03/2015
    Portfolio Holdings 3Q
    Publish Date:11/03/2015
    Summary Prospectus
    Publish Date:11/03/2015
    Statutory Prospectus
    Publish Date:11/03/2015
    SAI
    Publish Date:11/03/2015
    Annual Tailored Shareholder Report
    Publish Date:11/03/2015
    Semi-Annual Tailored Shareholder Report
    Publish Date:11/03/2015
    Fact Sheet
    Publish Date:11/03/2015
    Commentary
    Publish Date:11/03/2015
    Publish Date:11/03/2015
    * includes items 7-11 of form N-CSR as required, if any.

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