STATEMENT OF ADDITIONAL INFORMATION
MARCH 1, 2025
LORD ABBETT AFFILIATED FUND, INC.
CLASS
TICKER
CLASS
TICKER
A
LAFFX
R2
LAFQX
C
LAFCX
R3
LAFRX
F
LAAFX
R4
LAFSX
F3
LTFOX
R5
LAFTX
I
LAFYX
R6
LAFVX
P
LAFPX
This SAI is not a prospectus. A prospectus may be obtained from your financial intermediary or from the
Distributor at 30 Hudson Street, Jersey City, NJ 07302-4804. This SAI is divided into two Parts - Part I
and Part II. Part I contains information that is particular to the Fund offered in this SAI, and should be read
in conjunction with the prospectus for the Fund offered in this SAI, dated March 1, 2025, as supplemented
from time to time. Part I includes information about the Fund, including investment policies, management
fees paid by the Fund, and information about other fees applicable to and services provided to the Fund.
Part II contains additional information that more generally applies to the Lord Abbett Funds.
The Fund’s
audited financial statements are incorporated into this SAI by reference to the Fund's most
recent Form N-CSR. The Fund's annual and semiannual reports to shareholders and Form N-CSR are
available without charge, upon request by calling 888-522-2388. In addition, you can make inquiries
through your financial intermediary.
PART I
TABLE OF CONTENTS
PAGE
1.
GLOSSARY
1-1
2.
FUND INFORMATION
2-1
3.
INVESTMENT POLICIES
3-1
4.
FUND INVESTMENTS
4-1
5.
BOARD MEMBERS
5-1
6.
INVESTMENT ADVISORY AND OTHER SERVICES, FEES, AND EXPENSES
6-1
7.
PORTFOLIO MANAGER INFORMATION
7-1
8.
SECURITIES LENDING
8-1
9.
CONTROL PERSONS AND PRINCIPAL SHAREHOLDERS
9-1
10.
FINANCIAL STATEMENTS
10-1
Part I
1-1
1.
GLOSSARY
Lord Abbett Funds are comprised of the following management investment companies:
Lord Abbett Affiliated Fund, Inc.:
Affiliated Fund
Lord Abbett Bond Debenture Fund, Inc.:
Bond Debenture Fund
Lord Abbett Developing Growth Fund, Inc.:
Developing Growth Fund
Lord Abbett Global Fund, Inc.:
Global Fund
Lord Abbett Investment Trust:
Investment Trust
Lord Abbett Mid Cap Stock Fund, Inc.:
Mid Cap Stock Fund
Lord Abbett Municipal Income Fund, Inc.:
Municipal Income Fund
Lord Abbett Research Fund, Inc.:
Research Fund
Lord Abbett Securities Trust:
Securities Trust
Lord Abbett Series Fund, Inc.:
Series Fund
Lord Abbett Trust I:
Trust I
Lord Abbett U.S. Government & Government Sponsored Enterprises Money Market Fund, Inc.:
Money Market Fund
1933 Act
Securities Act of 1933, as amended
1940 Act
Investment Company Act of 1940, as amended
Board
Board of Directors
Board Member(s)
Director(s) of the Board
CDSC
Contingent deferred sales charge
CEA
Commodity Exchange Act, as amended
CPO
Commodity pool operator
Distributor
Lord Abbett Distributor LLC
Fund
Affiliated Fund
Independent Board Member(s)
Director(s) of the Board who are not “interested persons” as
defined in the 1940 Act, of the Fund
Interested Board Member(s)
Director(s) of the Board who are not Independent Board Members
Lord Abbett
Lord, Abbett & Co. LLC
NYSE
New York Stock Exchange
Registrant
Affiliated Fund
Rule 12b-1 Plan
Distribution and/or Shareholder Service Plan adopted under Rule
12b-1 (under the 1940 Act)
SAI
Statement of Additional Information
SEC
United States Securities and Exchange Commission
Part I
2-1
2.
FUND INFORMATION
The Registrant is an open-end management investment company registered under the 1940 Act. The
Fund is diversified within the meaning of the 1940 Act. The table below sets forth information about the
Registrant’s organization.
Registrant Organization
Registrant
Form of Organization
Date of Organization
Number of
Funds
Shares Available
for Issuance
Affiliated Fund
Maryland corporation
November 26, 1975*
1
9.6 billion shares,
$0.001 par value
*Affiliated Fund was reincorporated under Maryland law in 1975, but was initially organized in 1934.
Part I
3-1
3.
INVESTMENT POLICIES
Fundamental Investment Restrictions.
The Fund’s investment objective cannot be changed without
the approval of a “majority of the Fund’s outstanding shares.”
1
The Fund also is subject to the following
fundamental investment restrictions that cannot be changed without the approval of a majority of the
Fund’s outstanding shares.
The Fund may not:
1. borrow money, except that (i) it may borrow from banks (as defined in the 1940 Act)
2
in amounts
up to
33⅓%
of its total assets (including the amount borrowed), (ii) it may borrow up to an
additional 5% of its total assets for temporary purposes, (iii) it may obtain such short-term credit
as may be necessary for the clearance of purchases and sales of portfolio securities, (iv) it may
purchase securities on margin to the extent permitted by applicable law,
3
and (v) it may borrow
money from other Lord Abbett Funds to the extent permitted by applicable law and any exemptive
relief obtained by the Fund;
2. pledge its assets (other than to secure borrowings, or to the extent permitted by the Fund’s
investment policies as permitted by applicable law);
4
3. engage in the underwriting of securities, except pursuant to a merger or acquisition or to the
extent that, in connection with the disposition of its portfolio securities, it may be deemed to be an
underwriter under federal securities laws;
4. make loans to other persons, except that (i) the acquisition of bonds, debentures or other
corporate debt securities and investments in government obligations, commercial paper, pass-
through instruments, certificates of deposit, bankers’ acceptances, repurchase agreements or any
similar instruments shall not be subject to this limitation, and (ii) the Fund may lend its portfolio
securities, provided that the lending of portfolio securities may be made only in accordance with
applicable law, and (iii) the Fund may lend money to other Lord Abbett Funds to the extent
permitted by applicable law and any exemptive relief obtained by the Fund;
5. buy or sell real estate (except that the Fund may invest in securities directly or indirectly secured
by real estate or interests therein or issued by companies which invest in real estate or interests
therein), or commodities or commodity contracts (except to the extent the Fund may do so in
accordance with applicable law and without registering as a CPO under the CEA as, for example,
with futures contracts);
6. with respect to 75% of the gross assets of the Fund, buy securities of one issuer representing
more than (i) 5% of the Fund’s gross assets, except securities issued or guaranteed by the U.S.
Government, its agencies or instrumentalities or (ii) 10% of the voting securities of such issuer;
1
A “majority of the Fund’s outstanding shares” means the vote of the lesser of (1) 67% or more of the voting securities present at a
shareholder meeting, provided that more than 50% of the outstanding voting securities of the Fund are present at the meeting or
represented by proxy, or (2) more than 50% of the outstanding voting securities of the Fund regardless of whether such
shareholders are present at the meeting (or represented by proxy).
2
The term “bank” is defined in Section 2(a)(5) of the 1940 Act.
3
SEC staff guidance currently prohibits a Fund from purchasing any security on margin, except such short-term credits as are
necessary for the clearance of transactions.
4
For the purpose of this restriction the deposit of assets in a segregated account with a Fund’s custodian in connection with any of
the Fund’s investment transactions is not considered to be a pledge of the Fund’s assets.
Part I
3-2
7. invest more than 25% of its assets, taken at market value, in the securities of issuers in any
particular industry (excluding securities of the U.S. Government, its agencies and
instrumentalities); or
8. issue senior securities to the extent such issuance would violate applicable law.
5
5
Current federal securities laws prohibit a Fund from issuing senior securities (which generally are defined as securities
representing indebtedness), except that a Fund may borrow money from banks in amounts of up to
33⅓%
of its total assets
(including the amount borrowed).
Part I
4-1
4.
FUND INVESTMENTS
The following table identifies the investment types and techniques that Lord Abbett may use in managing
the Fund. A more detailed description of these investment types and techniques, along with the risks
associated with each, is contained in the “Additional Information on Portfolio Investments, Risks, and
Techniques” section of Part II. The Fund may use any or all of these investment types and techniques
indicated below at any one time, and the fact that the Fund may use a particular investment type or
technique does not mean that it will be used. The Fund’s transactions in a particular investment type or
use of a particular technique is subject to the limitations imposed by the Fund’s investment objective,
policies, and restrictions described in the Fund's prospectus and in this SAI, as well as the federal
securities laws. The Fund may make other types of investments provided the investments are consistent
with the Fund's investment objective and policies and the Fund's investment restrictions do not expressly
prohibit it from doing so.
In addition, the Fund may receive instruments or investments not contemplated
herein through the conversion or exchange of a permissible investment or as a result of the
reorganization or bankruptcy of the issuer of an otherwise permissible investment, and the Fund may hold
or dispose of these instruments or investments at its discretion.
Please refer to the Fund's prospectus and the fundamental and non-fundamental investment restrictions
in the “Investment Policies” section of Part I for more information on any applicable limitations.
Investment Type and Techniques
Cash Balance Management Practices
X
Convertible Securities
X
Synthetic Convertible Securities
X
Contingent Convertible Securities
X
Debt Securities
X
High-Yield or Lower-Rated Debt Securities
X
Defaulted Bonds and Distressed Debt
Depositary Receipts
X
Derivatives
X
Combined Transactions
Commodity-Related Investments
Credit Derivatives
X
Forward Contracts
X
Futures Contracts
X
Options Contracts
X
Participation Notes
Swap Agreements
X
Equity Securities
X
Common Stocks
X
Initial Public Offerings
X
Master Limited Partnerships
X
Preferred Stocks
X
Warrants and Rights
X
Foreign Currency Transactions
X
Foreign Securities
X
Emerging Market Securities
X
Illiquid Securities
X
Inflation-Indexed Securities
Investments in Other Investment Companies
X
Loans
Mortgage-Related and Asset-Backed Securities and Other Collateralized
Obligations
Municipal Bonds
Part I
4-2
Investment Type and Techniques
Non-U.S. Government and Supranational Debt Securities
Real Estate Investment Trusts
X
Short Sales
X
Structured Notes and Other Hybrid Instruments
X
U.S. Government Securities
X
When-Issued or Forward Transactions
Zero Coupon, Deferred Interest, Pay-In-Kind, and Capital Appreciation Bonds
Related Additional Investment Restrictions
In addition to the principal investment strategies (and related restrictions) discussed in the Fund's
prospectus, the Fund may use other investment techniques in seeking to achieve its investment objective,
as set forth in the table above. The applicable investment restrictions associated with such other
investment techniques are set forth below. Please see ‘‘Additional Information on Portfolio Investments,
Risks, and Techniques’’ in Part II of the SAI for more information on these and the other investment
techniques that may be used by the Fund.
Borrowing Money.
The Fund may borrow money to the extent permitted by its investment policies and
restrictions and applicable law. When the Fund borrows money or otherwise leverages its portfolio, the
value of an investment in the Fund may be more volatile and other investment risks will tend to be
compounded.
The Fund may engage in other transactions that may have the effect of creating leverage in the Fund’s
portfolio, including, by way of example, derivatives transactions and reverse repurchase agreements. The
Fund will generally not treat derivative transactions as borrowings of money.
Illiquid Securities.
The Fund may invest up to 15% of its net assets in illiquid securities. An illiquid
security is a security that the Fund reasonably expects cannot be sold or disposed of in then-current
market conditions in seven calendar days or less without the sale or disposition significantly changing the
market value of the security. In determining the liquidity of an investment, the Fund may consider, among
other things, the relevant market, trading and investment specific considerations of the security, including
anticipated trading sizes.
Part I
5-1
5.
BOARD MEMBERS
The Board Members of the Registrant are also Board Members of each of the Lord Abbett Funds, which
collectively consist of 63 funds. For more information on the Board Members, please see the
“Management of the Funds” section of Part II.
Compensation
The following table sets forth the compensation accrued by the Registrant for the Independent Board
Members and the total compensation paid by all Lord Abbett Funds to the Independent Board Members,
including amounts payable but deferred at the option of each Independent Board Member. No Interested
Board Member or officer of the Lord Abbett Funds received any compensation from the Funds for acting
as a Board Member or officer. The Lord Abbett Funds currently do not offer a bonus, pension, profit-
sharing, or retirement plan.
Board Members
For the Fiscal Year Ended October
31, 2024 Aggregate Compensation
Accrued by the Registrant
1
Total Compensation Paid by
the Lord Abbett Funds
2
Evelyn E. Guernsey
$27,686
$630,000
Julie A. Hill
3
2,898
0
Kathleen M. Lutito
21,058
470,000
Peter J. McNamara
4
N/A
N/A
James M. McTaggart
5
19,937
445,000
Charles O. Prince
21,058
470,000
Karla M. Rabusch
21,536
480,000
Lorin Patrick Taylor Radtke
18,816
420,000
Leah Song Richardson
18,816
420,000
Mark A. Schmid
19,126
420,000
James L.L. Tullis
5
19,956
420,000
1
Independent Board Members’ fees, including attendance fees for Board and committee meetings, are allocated among all Lord
Abbett Funds based on the net assets of the Fund. A portion of the fees payable by the Fund to its Independent Board Members
may be deferred at the option of a Board Member under an equity-based plan (the “deferred compensation plan”) that deems the
deferred amounts to be invested in shares of the Registrant for later distribution to the Board Members. The total deferred
amounts for Ms. Guernsey, Ms. Hill, Ms. Lutito, Mr. McTaggart, Mr. Prince, Ms. Rabusch, Mr. Radtke, Ms. Richardson, Mr.
Schmid, and Mr. Tullis attributable to the Registrant are $0, $542, $2,898, $7,816, $20,072, $0, $9,408, $10,043, $0, and $1,119,
respectively.
2
The second column shows total compensation, including the types of compensation described in the “For the Fiscal Year Ended
October 31, 2024 Aggregate Compensation Accrued by the Registrant” column, accrued by all Lord Abbett Funds for the calendar
year ended December 31, 2024, including fees of Independent Board Members that have been deferred.
3
Ms. Hill retired as a Trustee/Director of the Lord Abbett Funds effective December 31, 2023.
4
Mr. McNamara was appointed as a Trustee/Director of the Lord Abbett Funds effective January 1, 2025.
5
Mr. McTaggart and Mr. Tullis retired as Trustees/Directors of the Lord Abbett Funds effective December 31, 2024.
Fund Ownership
The following table sets forth certain information about the dollar range of equity securities beneficially
owned by each current Board Member in the Registrant and all other Lord Abbett Funds as of December
31, 2024. The amounts shown include deferred compensation (including any earnings) to the Board
Members deemed invested in Fund shares under the deferred compensation plan. The amounts
ultimately received by the Board Members under the deferred compensation plan will be directly linked to
the investment performance of the Lord Abbett Funds.
Board Members
Dollar Range of Equity
Securities in the Fund
Aggregate Dollar Range of Equity
Securities in Lord Abbett Funds
Independent Directors
Evelyn E. Guernsey
$10,001 - $50,000
Over $100,000
Kathleen M. Lutito
$1 - $10,000
Over $100,000
Peter J. McNamara
1
N/A
N/A
Part I
5-2
Board Members
Dollar Range of Equity
Securities in the Fund
Aggregate Dollar Range of Equity
Securities in Lord Abbett Funds
Charles O. Prince
$1 - $10,000
Over $100,000
Karla M. Rabusch
Over $100,000
Over $100,000
Lorin Patrick Taylor Radtke
None
Over $100,000
Leah Song Richardson
None
Over $100,000
Mark A. Schmid
$1 - $10,000
Over $100,000
Interested Director
Douglas B. Sieg
Over $100,000
Over $100,000
1
Mr. McNamara was appointed as a Trustee/Director of the Lord Abbett Funds effective January 1, 2025.
Committee Meetings
The following table sets forth the number of times each committee of the Board met during the most
recent fiscal year:
Fiscal Year
Ended
Audit
Committee
Sustainability
and Proxy
Committee
1
Governance
Committee
Ad Hoc
Compensation
Committee
Investment
Committee
Proxy
Conflict
Committee
2
October 31,
2024
5
1
4
0
4
0
1
The Sustainability and Proxy Committee was eliminated, with its responsibilities generally assumed by the Board.
2
The Proxy Conflict Committee was eliminated, with its responsibilities generally assumed by the Board.
Part I
6-1
6.
INVESTMENT ADVISORY AND OTHER SERVICES, FEES, AND EXPENSES
For more information on Lord Abbett, please see the “Investment Adviser” section of Part II.
Lord Abbett is the Fund’s investment adviser. Lord Abbett is a privately held investment adviser. Lord
Abbett’s address is 30 Hudson Street, Jersey City, NJ 07302-4804.
Under the Management Agreement between Lord Abbett and the Fund, Lord Abbett is entitled to an
annual management fee based on the Fund’s average daily net assets. The management fee is allocated
to each class of shares based upon the relative proportion of the Fund’s net assets represented by that
class.
The Fund pays all expenses attributable to its operations not expressly assumed by Lord Abbett,
including, without limitation, Rule 12b-1 Plan expenses, Independent Board Members’ fees and
expenses, association membership dues, legal and auditing fees, taxes, transfer and dividend disbursing
agent fees, shareholder servicing costs, expenses relating to shareholder meetings, expenses of
registering its shares under federal and state securities laws, expenses of preparing, printing and mailing
prospectuses and shareholder reports to existing shareholders, insurance premiums, and other expenses
connected with executing portfolio transactions.
Management Fee Rates
The management fee is accrued daily, payable monthly, and calculated at the following annual rates:
First $200 million
0.50%
Next $300 million
0.40%
Next $200 million
0.375%
Next $200 million
0.35%
Over $900 million
0.30%
Management Fees Paid to Lord Abbett
The following tables set forth the management fees the Fund paid to Lord Abbett (taking into account any
management fee waivers) for the last three fiscal years ended October 31
st
.
2022
Gross Management Fees
Management Fees Waived
Net Management Fees
$18,885,863
$0
$18,885,863
2023
Gross Management Fees
Management Fees Waived
Net Management Fees
$16,946,321
$0
$16,946,321
2024
Gross Management Fees
Management Fees Waived
Net Management Fees
$18,564,515
$0
$18,564,515
Administrative Services Fees Paid to Lord Abbett
Pursuant to an Administrative Services Agreement with the Fund, Lord Abbett provides certain
administrative services not involving the provision of investment advice to the Fund. The following table
sets forth the administrative services fees the Fund paid to Lord Abbett for the last three fiscal years
ended October 31
st
:
Part I
6-2
2022
Gross Administrative Fees
Administrative Fees
Voluntarily Waived
Net Administrative Fees
$2,391,448
$(74,581)
$2,316,867
2023
Gross Administrative Fees
Administrative Fees
Voluntarily Waived
Net Administrative Fees
$2,132,843
$(65,756)
$2,067,087
2024
Gross Administrative Fees
Administrative Fees
Voluntarily Waived
Net Administrative Fees
$2,348,602
$(53,297)
$2,295,305
Distributor
For additional information on the Distributor, please see the “Investment Advisory and Other Services,
Fees, and Expenses – Distributor” section of Part II. The Distributor received no other compensation
(including compensation on redemption and repurchase and brokerage commissions in connections with
Fund transactions) apart from that reflected below.
The following table sets forth the net sales charge received (after allowance of a portion of the sales
charge to independent dealers) by the Distributor, as the Registrant’s principal underwriter, for the last
three fiscal years ended October 31
st
:
2022
2023
2024
Gross sales charge
$1,596,129
$916,434
$938,011
Amount allowed to dealers
1,344,858
775,664
799,315
Net commissions received by the Distributor
251,271
140,770
138,696
The following table sets forth the CDSC received by the Distributor for the last three fiscal years ended
October 31
st
:
2022
2023
2024
CDSC received by the Distributor
$18,825
$5,910
$6,274
Rule 12b-1 Plan
For additional information on the Rule 12b-1 Plan, please see the “Investment Advisory and Other
Services, Fees, and Expenses – Rule 12b-1 Plan” section of Part II.
The following table sets forth the amounts paid by each applicable class of the Fund to the Distributor
pursuant to the Rule 12b-1 Plan for the fiscal year ended October 31, 2024:
Class A
Class C
Class F
Class P
Class R2
Class R3
Class R4
$12,649,325
$468,118
$58,383
$41,108
$4,878
$134,784
$21,490
Brokerage Commissions
The Fund’s policy with respect to portfolio transactions and brokerage is set forth under the “Brokerage
Allocation and Other Practices” section of Part II.