Choose a Role
* includes items 7-11 of form N-CSR as required, if any.
of 8
Current View
L
o
r
d
A
b
b
e
t
t
Q
u
a
r
t
e
r
l
y
P
o
r
t
f
o
l
i
o
H
o
l
d
i
n
g
s
R
e
p
o
r
t
L
o
r
d
A
b
b
e
t
t
A
f
f
i
l
i
a
t
e
d
F
u
n
d
F
o
r
t
h
e
p
e
r
i
o
d
e
n
d
e
d
J
u
l
y
3
1
,
2
0
2
4
S
e
e
N
o
t
e
s
t
o
S
c
h
e
d
u
l
e
o
f
I
n
v
e
s
t
m
e
n
t
s
.
1
LONG-TERM INVESTMENTS 98.94%
COMMON STOCKS 96.57%
Aerospace & Defense 1.53%
Northrop Grumman Corp. 192,758 $
93,356,555
Automobiles 1.40%
General Motors Co.
1,925,554
85,340,553
Banks 9.02%
Bank of America Corp.
3,447,628
138,973,885
East West Bancorp, Inc. 1,039,069
91,323,774
JPMorgan Chase & Co.
1,075,990
228,970,672
Wells Fargo & Co.
1,542,181
91,513,021
Total
550,781,352
Beverages 0.83%
Coca-Cola Co.
760,119
50,730,342
Biotechnology 2.27%
AbbVie, Inc.
747,351
138,499,087
Building Products 0.66%
Allegion PLC (Ireland)
(a)
296,427
40,554,178
Capital Markets 9.23%
Ameriprise Financial, Inc. 168,601
72,510,232
BlackRock, Inc.
111,007
97,297,635
Cboe Global Markets, Inc. 220,519
40,467,442
Charles Schwab Corp.
1,923,951
125,422,366
Evercore, Inc. Class A
278,098
69,632,958
Morgan Stanley
665,171
68,652,299
S&P Global, Inc.
184,757
89,557,261
Total
563,540,193
Chemicals 1.25%
Linde PLC
168,933
76,611,116
Commercial Services & Supplies 1.36%
Waste Management, Inc. 408,763
82,839,910
Construction Materials 2.44%
CRH PLC (Ireland)
(a)
1,740,693
149,177,390
Consumer Staples Distribution & Retail 4.75%
Costco Wholesale Corp.
36,265 $
29,809,830
Dollar General Corp.
268,377
32,309,907
Target Corp.
467,031
70,246,133
Walmart, Inc.
2,297,995
157,734,377
Total
290,100,247
Distributors 1.40%
Genuine Parts Co.
198,961
29,269,153
Pool Corp.
150,781
56,398,125
Total
85,667,278
Electric: Utilities 1.91%
Entergy Corp.
1,006,892
116,769,265
Electrical Equipment 3.26%
Eaton Corp. PLC
220,786
67,293,365
Emerson Electric Co.
1,123,344
131,554,816
Total
198,848,181
Ground Transportation 1.30%
Union Pacific Corp.
321,719
79,377,729
Health Care Equipment & Supplies 1.66%
Abbott Laboratories
956,026
101,281,394
Health Care Providers & Services 3.77%
Labcorp Holdings, Inc.
226,390
48,773,462
UnitedHealth Group, Inc. 314,335
181,107,253
Total
229,880,715
Hotels, Restaurants & Leisure 0.33%
McDonald’s Corp.
76,573
20,322,474
Household Durables 0.62%
PulteGroup, Inc.
288,613
38,096,916
Household Products 0.56%
Procter & Gamble Co.
211,406
33,985,629
Information Technology Services 0.97%
Accenture PLC Class A
(Ireland)
(a)
178,992
59,178,335
Fair
Investments
Shares
Value
Fair
Investments
Shares
Value
Schedule of Investments (unaudited)
LORD ABBETT AFFILIATED FUND, INC.
J
u
l
y
3
1
,
2
0
2
4
2
S
e
e
N
o
t
e
s
t
o
S
c
h
e
d
u
l
e
o
f
I
n
v
e
s
t
m
e
n
t
s
.
Insurance 5.53%
Chubb Ltd. (Switzerland)
(a)
379,654 $
104,655,422
Manulife Financial Corp.
(Canada)
(
a)
4,354,594
115,962,838
Marsh & McLennan
Cos., Inc.
526,201
117,116,556
Total
337,734,816
Interactive Media & Services 2.85%
Alphabet, Inc. Class A
524,685
90,004,465
Meta Platforms, Inc.
Class A
177,297
84,185,934
Total
174,190,399
Life Sciences Tools & Services 1.99%
Danaher Corp.
437,633
121,259,352
Machinery 2.62%
Parker-Hannifin Corp.
208,562
117,036,652
Stanley Black & Decker,
Inc.
407,336
43,022,828
Total
160,059,480
Media 0.94%
Comcast Corp. Class A 1,383,809
57,109,797
Metals & Mining 2.22%
BHP Group Ltd. ADR
(b)
962,027
53,421,359
Reliance, Inc.
145,884
44,430,431
Steel Dynamics, Inc.
283,446
37,760,676
Total
135,612,466
Oil, Gas & Consumable Fuels 8.87%
Chesapeake Energy
Corp.
(b)
982,425
74,988,500
Exxon Mobil Corp.
1,809,466
214,584,573
Kinder Morgan, Inc.
5,050,312
106,713,093
Marathon Petroleum
Corp.
138,545
24,525,236
Shell PLC ADR
1,647,687
120,643,642
Total
541,455,044
Pharmaceuticals 0.91%
Eli Lilly & Co.
69,377
55,797,840
Semiconductors & Semiconductor
Equipment 7.33%
Analog Devices, Inc.
454,597 $
105,184,654
Broadcom, Inc.
798,930
128,372,072
Lam Research Corp.
61,208
56,387,258
Taiwan Semiconductor
Manufacturing Co. Ltd.
ADR
951,858
157,818,057
Total
447,762,041
Software 2.37%
Microsoft Corp.
133,500
55,849,725
Roper Technologies, Inc. 163,122
88,860,709
Total
144,710,434
Specialty Retail 2.74%
Lowe’s Cos., Inc.
327,174
80,324,488
Ross Stores, Inc.
608,625
87,173,359
Total
167,497,847
Tobacco 2.75%
Philip Morris International,
Inc.
1,458,522
167,963,394
Trading Companies & Distributors 4.93%
AerCap Holdings NV
(Ireland)
(a)
836,981
78,634,365
Ferguson PLC (United
Kingdom)
(a)
518,867
115,525,737
United Rentals, Inc.
140,938
106,704,160
Total
300,864,262
Total Common Stocks
(cost $4,454,521,110)
5,896,956,011
CONVERTIBLE PREFERRED STOCKS 2.37%
Electric: Utilities 2.37%
NextEra Energy, Inc.
(b)(c)
(cost $122,553,464)
3,270,964
144,920,061
Total Long-Term Investments
(cost $4,577,074,574)
6,041,876,072
Fair
Investments
Shares
Value
Fair
Investments
Shares
Value
Schedule of Investments (unaudited)(continued)
LORD ABBETT AFFILIATED FUND, INC.
J
u
l
y
3
1
,
2
0
2
4
S
e
e
N
o
t
e
s
t
o
S
c
h
e
d
u
l
e
o
f
I
n
v
e
s
t
m
e
n
t
s
.
3
SHORT-TERM INVESTMENTS 3.13%
Repurchase Agreements 1.13%
Repurchase Agreement
dated 7/31/2024, 2.800%
due 8/1/2024 with Fixed
Income Clearing Corp.
collateralized by
$74,368,700 of U.S.
Treasury Note at
0.375% due 12/31/2025;
value: $70,130,600;
proceeds: $68,760,676
(cost $68,755,328)
$68,755,328 $
68,755,328
Shares
Money Market Funds 1.80%
Fidelity Government
Portfolio
(d)
(cost $110,004,316)
110,004,316
110,004,316
Time Deposits 0.20%
CitiBank N.A.
(d)
(cost $12,222,702)
12,222,702 $
12,222,702
Total Short-Term
Investments
(cost $190,982,346)
190,982,346
Total Investments in
Securities 102.07%
(cost $4,768,056,920)
6,232,858,418
Other Assets and
Liabilities – Net (2.07)%
(126,518,320)
Net Assets 100.00%
$
6,106,340,098
ADR American Depositary Receipt.
(a)
Foreign security traded in U.S. dollars.
(b)
All or a portion of this security is temporarily on loan
to unaffiliated broker/dealers.
(c)
The security has a dividend rate of 6.22%.
(d)
Security was purchased with the cash collateral from
loaned securities.
Principal
Fair
Investments
Amount
Value
Fair
Investments
Shares
Value
Schedule of Investments (unaudited)(concluded)
LORD ABBETT AFFILIATED FUND, INC.
J
u
l
y
3
1
,
2
0
2
4
The following is a summary of the inputs used as of July 31, 2024 in valuing the Fund’s investments carried
at fair value
(1)
:
Investment Type
(2)
Level 1
Level 2
Level 3
Total
Long-Term Investments
Common Stocks $
5,896,956,011
$–
$ – $
5,896,956,011
Convertible Preferred Stocks
144,920,061 –
144,920,061
Short-Term Investments
Repurchase Agreements
68,755,328 –
68,755,328
Money Market Funds
110,004,316
– –
110,004,316
Time Deposits
12,222,702 –
12,222,702
Total
$
6,006,960,327
$225,898,091
$ – $
6,232,858,418
(1)
Refer to Note 2(b) for a description of fair value measurements and the three-tier hierarchy of inputs.
(2)
See Schedule of Investments for fair values in each industry and identification of foreign issuers and/or geography.
The table above is presented by Investment Type. Industries are presented within an Investment Type should such
Investment Type include securities classified as two or more levels within the three-tier fair value hierarchy. When
applicable, each Level 3 security is identified on the Schedule of Investments along with the valuation technique
utilized.
A reconciliation of Level 3 investments is presented when the Fund has a material amount of Level 3
investments at the beginning or end of the period in relation to the Fund’s net assets.
1. ORGANIZATION
Lord Abbett Affiliated Fund, Inc. (the “Fund”) is registered under the Investment Company Act of
1940, as amended (the “Act”), as a diversified, open-end management investment company. The
Fund was organized in 1934 and was reincorporated under Maryland law on November 26, 1975.
The Fund’s investment objective is long-term growth of capital and income without excessive
fluctuations in market value.
2. SIGNIFICANT ACCOUNTING POLICIES
(a)
Investment Valuation–
Under procedures approved by the Fund’s Board of Directors
(the “Board”), the Board has designated the determination of fair value of the Fund’s
portfolio investments to Lord, Abbett & Co. LLC (“Lord Abbett”) as its valuation designee.
Accordingly, Lord Abbett is responsible for, among other things, assessing and managing
valuation risks, establishing, applying and testing fair value methodologies, and evaluating
pricing services. Lord Abbett has formed a Pricing Committee that performs these
responsibilities on behalf of Lord Abbett, administers the pricing and valuation of portfolio
investments and ensures that prices utilized reasonably reflect fair value. Among other
things, these procedures allow Lord Abbett, subject to Board oversight, to utilize
independent pricing services, quotations from securities, and financial instrument dealers
and other market sources to determine fair value.
Securities actively traded on any recognized U.S. or non-U.S. exchange or on the NASDAQ
Stock Market LLC are valued at the last sale price or official closing price on the exchange
or system on which they are principally traded. Events occurring after the close of trading
on non-U.S. exchanges may result in adjustments to the valuation of foreign securities to
reflect their fair value as of the close of regular trading on the New York Stock Exchange.
When valuing foreign equity securities that meet certain criteria, the Pricing Committee uses
a third-party fair valuation service that values such securities to reflect market trading that
occurs after the close of the applicable foreign markets of comparable securities or other
instruments that correlate to the fair-valued securities. Unlisted equity securities are valued
at the last quoted sale price or, if no sale price is available, at the mean between the most
recently quoted bid and ask prices. Exchange traded options and futures contracts are valued
at the last quoted sale price in the market where they are principally traded. If no sale has
occurred, the mean between the most recently quoted bid and ask prices is used.
Securities for which prices are not readily available are valued at fair value as determined by
the Pricing Committee. The Pricing Committee considers a number of factors, including
observable and unobservable inputs, when arriving at fair value. The Pricing Committee may
use related or comparable assets or liabilities, recent transactions, market multiples, book
values, and other relevant information to determine the fair value of portfolio investments.
The Board or a designated committee thereof periodically reviews reports that may include
fair value determinations made by the Pricing Committee, related market activity, inputs and
assumptions, and retrospective comparison of prices of subsequent purchases and sales
transactions to fair value determinations made by the Pricing Committee.
Short-term securities with 60 days or less remaining to maturity are valued using the
amortized cost method, which approximates fair value. Investments in open-end money
market mutual funds are valued at their NAV as of the close of each business day.
Notes to Schedule of Investments (unaudited)
4
(b)
Fair Value Measurements–
Fair value is defined as the price that the Fund would receive
upon selling an investment or transferring a liability in an orderly transaction to an
independent buyer in the principal or most advantageous market of the investment.
A three-
tier hierarchy is used to maximize the use of observable market data and minimize
the use of unobservable inputs and to establish classification of fair value measurements for
disclosure purposes. Inputs refer broadly to the assumptions that market participants would
use in pricing the asset or liability, including assumptions about risk - for example, the risk
inherent in a particular valuation technique used to measure fair value (such as a pricing
model) and/or the risk inherent in the inputs to the valuation technique. Inputs may be
observable or unobservable. Observable inputs reflect the assumptions market participants
would use in pricing the asset or liability. Observable inputs are based on market data
obtained from sources independent of the reporting entity. Unobservable inputs reflect the
reporting entity’s own assumptions about the assumptions market participants would use in
pricing the asset or liability. Unobservable inputs are based on the best information available
in the circumstances. The three-tier hierarchy classification is determined based on the
lowest level of inputs that is significant to the fair value measurement, and is summarized
in the three broad Levels listed below:
• Level 1 – unadjusted quoted prices in active markets for identical investments;
• Level 2 – other significant observable inputs (including quoted prices for similar
investments, interest rates, prepayment speeds, credit risk, etc.); and
• Level 3 – significant unobservable inputs (including the Fund’s own assumptions in
determining the fair value of investments).
A summary of inputs used in valuing the Fund’s investments as of July 31, 2024 and, if
applicable, Level 3 rollforwards for the period then ended is included in the Fund’s Schedule
of Investments.
Changes in valuation techniques may result in transfers into or out of an assigned level
within the three-tier hierarchy. The inputs or methodology used for valuing securities are not
necessarily an indication of the risk associated with investing in those securities.
3. FEDERAL TAX INFORMATION
It is the policy of the Fund to meet the requirements of Subchapter M of the Internal Revenue
Code applicable to regulated investment companies and to distribute substantially all taxable
income and capital gains to its shareholders. Therefore, no income tax provision is required.
The Fund files U.S. federal and various state and local tax returns. No income tax returns are
currently under examination. The statute of limitations on the Fund’s filed U.S. federal tax
returns remains open generally three years after the filing of the tax return. The statutes of
limitations on the Fund’s state and local tax returns may remain open for an additional year
depending upon the jurisdiction.
4. SECURITIES LENDING AGREEMENT
The Fund has established a securities lending agreement with Citibank, N.A. for the lending of
securities to qualified brokers in exchange for securities or cash collateral equal to at least the
market value of securities loaned, plus interest, if applicable. Cash collateral is invested in an
approved money market fund. In accordance with the Fund’s securities lending agreement, the
5
Notes to Schedule of Investments (unaudited)(continued)
market value of securities on loan is determined each day at the close of business and any
additional collateral required to cover the value of securities on loan is delivered to the Fund on
the next business day. As with other extensions of credit, the Fund may experience a delay in the
recovery of its securities or incur a loss should the borrower of the securities breach its
agreement with the Fund or the borrower becomes insolvent at a time when the collateral is
insufficient to cover the cost of repurchasing securities on loan.
The initial collateral received by the Fund is required to have a value equal to at least 100% of
the market value of the securities loaned. The collateral must be marked-to-market daily to cover
increases in the market value of the securities loaned (or potentially a decline in the value of the
collateral). In general, the risk of borrower default will be borne by Citibank, N.A.; the Fund will
bear the risk of loss with respect to the investment of the cash collateral. The advantage of such
loans is that the Fund continues to receive income on loaned securities while receiving a portion
of any securities lending fees and earning returns on the cash amounts which may be reinvested
for the purchase of investments in securities.
As of July 31, 2024 the market value of securities loaned and collateral received were as follows:
Market Value of
Securities Loaned
Collateral Received
$121,607,315
$122,227,018
6
Notes to Schedule of Investments (unaudited)(concluded)